Tax Notes Article by Amy S. Elliot, "IRS updates 30-year-old revenue procedure on basis determinations"

The IRS on May 31 issued Rev. Proc. 2011-35, which updates the procedures used by corporations to determine their carryover basis in target stock acquired in a tax-free section 368(a)(1)(B) reorganization.  Rev. Proc. 2011-35 replaces Rev. Proc. 81-70, 1981-2 C.B. 729, modifies and expands on the safe harbor estimation procedures provided in Notice 2009-4, and provides strict reductions in allowable basis in proportion to any data loss.

2011 TNT 105-2

Posted by Adam Fleischer, Associate Editor, Wealth Strategies Journal