The information in Sec. 1.1502-35(c) is necessary to ensure that a consolidated group does not obtain more than one tax benefit from both the utilization of a loss from the disposition of stock and the utilization of a loss or deduction with respect to another asset that reflects the same economic loss; to allow the taxpayer to make an election under Sec. 1.1502-35(c)(5) that would benefit the taxpayer, the election in Sec. 1.1502-35(f) provides taxpayers the choice in the case of a worthless subsidiary to utilize a worthless stock deduction or absorb the subsidiary's losses; and Sec. 1.1502-35(g)(3) applies to ensure that taxpayers do not circumvent the loss suspension rule of §1.1502-35(c) by deconsolidating a subsidiary and then re-importing to the group losses of such subsidiary.
US Code:
26 USC 1502
Name of Law: SPECIAL RULE FOR DISPOSITION OF STOCK OF SUBSIDIARY
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
1545-1828_SuppStmnt_TD_9048&9254_REV.doc
TD9048_031403.pdf
REG-131478-02 (TD 9048; 9254) Guidance Under Section 1502; Suspension of Losses on Certain Stock Disposition