ALI-ABA Course of Study Consolidated Tax Return Regulations Cosponsored by the ABA Section of Taxation September 30 - October 1, 2010 Washington, D.C. PROGRAM FACULTY PARTICIPANTS STUDY MATERIALS TABLE OF CONTENTS 1. Investment Adjustments and Related Issues By Theresa A. Abell, Jerred G. Blanchard, Joseph M. Pari, Patricia W. Pellervo, and Mark J. Silverman Page xi 2. The Consolidated Return Investment Basis Adjustment Rules Study Problems 23 By Theresa A. Abell, Jerred G. Blanchard, Joseph M. Pari, Patricia W. Pellervo, and Mark J. Silverman Table of Contents 25 Study Material 27 3. Acquisition and Separation Issues in Consolidation By Karen Gilbreath Sowell, Stephen L. Gordon, Mark J. Silverman, Eric Solomon, and Robert H. Wellen 4. Life After the Final Regulations: Consolidated Section 382 and SRLY 193 By Stuart J. Goldring and Scott M. Sontag Table of Contents 195 Study Material 203 5. Consolidated Group Joint Ventures Including One-Party Limited Liability Companies (LLCs) By Lisa M. Zarlenga, Aaron P. Nocjar, and Robert M. Crnkovich xiii 1 87 291 NOTE: THE FOLLOWING CHAPTERS APPEAR ONLY IN THE ONLINE VERSION OF THIS COURSEBOOK. 6. The Consolidated Return Investment Basis Adjustment Rules 325 Table of Contents 327 Study Material 331 7. Affiliation and Consolidation: Selected Group Membership Issues 425 By Steven B. Teplinsky Table of Contents 426 Study Material 427 8. The Regulations Governing Intercompany Transactions Within Consolidated Groups 565 Table of Contents 567 Study Material 569 vii
9. Intercompany Transaction Regulations: An Overview By Andrew J. Dubroff 635 10. Intercompany Transaction Problems 671 Table of Contents 673 Study Material 678 11. Intercompany Transactions 719 Andrew J. Dubroff, Jerred G. Blanchard, John G. Broadbent, and Kevin A. Duvall Synopsis 721 Study Material 725 12. Comparison of the Intercompany Obligation Rules Under Former Treas. Reg. 1117 1.1502-13(g) (1995), Former Prop. Treas. Reg. 1.1502-13(g) (1998), and Treas. Reg. 1.1502-13(g) (2008) Table of Contents 1119 Study Material 1121 13. Consolidated Return Issues for Buyers and Sellers in M&A Transactions By Michael L. Schler 14. Current Developments in Tax-Free Corporate Reorganizations 1247 Table of Contents 1249 Study Material 1253 15. Current Developments in Tax-Free and Taxable Acquisitions and Separations 1509 Faculty Biography 1511 Table of Contents 1514 Presentation Slides 1525 16. Recent Developments in the Step Transaction Doctrine 1733 Table of Contents 1734 Study Material 1735 17. The Pre-Reorganization Continuity of Interest Regulations 18. Section 338 1853 Table of Contents 1854 Study Material 1857 Appendix A: Form 8594 2096 Appendix B: Form 8883 2099 Appendix C: Form 8023 2102 Appendix D: Form 8806 2105 Appendix E: Forms 1096 and 1099-CAP 2109 1217 1825 viii
19. Continuity of Interest and Continuity of Business Enterprise Regulations 20. Assessing the Value of the Proposed No Net Value Regulations, Lisa M. Zarlenga, and Gregory N. Kidder 2113 2175 21. Restructuring Troubled Companies 2227 By Lisa M. Zarlenga Table of Contents 2228 Study Material 2231 22. Contingent Consideration and Contingent Liabilities in Acquisitions 2349 By Robert H. Wellen Faculty Biography 2351 Table of Contents 2354 Study Material 2361 References 2447 23. Application of Cancellation of Debt Rules to Consolidated Groups By Stuart J. Goldring 24. The Section 382 Consolidated Return Regulations 2525 Table of Contents 2526 Study Material 2529 25. Corporate Divisions Under Section 355 2615 and Lisa M. Zarlenga Table of Contents 2617 Study Material 2621 Appendix A: Requirements for Business Purpose Listed under Rev. Proc. 96-30 2871 26. The Section 355(d) Regulations: Narrowing the Scope of an Overly Broad Statute 2877 and Lisa M. Zarlenga Table of Contents 2879 Study Material 2881 27. Spin-Offs : The Anti-Morris Trust and Intragroup Spin Provisions 2967 and Lisa M. Zarlenga Table of Contents 2968 Study Material 2969 28. The Fourth Time s a Charm Temporary Section 355(e) Regulations Provide Helpful Guidance to Taxpayers and Lisa M. Zarlenga 29. Final Section 355(e) Plan Regulations The Final Chapter in Saga and Lisa M. Zarlenga 30. Who Precedes and Who Succeeds: Proposed Section 355(e)(4)(D) Regulations By Lisa M. Zarlenga 2487 3051 3101 3139 ix
31. The Consolidated Unified Loss Rules 3169 and Lisa M. Zarlenga Table of Contents 3171 Table of Examples 3173 Study Material 3175 32. Use of Limited Liability Companies in Corporate Transactions 3331 and Lisa M. Zarlenga Table of Contents 3333 Study Material 3339 33. A New Form of Obscenity? Sorting through the Federal Circuit s We Know It When We See It Ruling in Coltec, Matthew D. Lerner, and Gregory N. Kidder 34. Section 1504 Affiliation Issues (handout) By Kathleen L. Ferrell 35. Acquisition and Separation Issues in Consolidation (handout) By Karen Gilbreath-Sowell, Stephen L. Gordon, Mark J. Silverman, Eric Solomon, and Robert H. Wellen 36. Tax Attributes and Consolidation (Handout) Stuart J. Goldring, Mark R. Hoffenberg, Rich McManus, and Bernita L. Thigpen 37. Unified Loss Rule (handout) By William D. Alexander, Theresa A. Abell, Marc Countryman, Audrey Nacamuli, and Michael L. Schler 38. Section 1504(a)(3): Required Five-Year Lapse Before Reconsolidation (handout) By Steven B. Teplinsky 39. The Consolidated Group: Continuation and Termination Issues (handout) Thomas F. Wessel, Jeffrey G. Davis, Jeffrey L. Vogel, and Bryan P. Collins 40. Group Continuation Rules / Continued Filing Requirement (handout) Thomas F. Wessel and Jeffrey L. Vogel 41. Intercompany Transactions (handout) By Donald Bakke, Bryan Collins, Andrew Dubroff, Gordon Warnke, and Michael Wilder 3503 3541 3553 3567 3599 3645 3661 3725 3757 x
ALI-ABA Course of Study Consolidated Tax Return Regulations Cosponsored by the ABA Section of Taxation September 30-October 1, 2010 Washington, D.C. PROGRAM (all times Eastern) Thursday, September 30, 2010 7:45 a.m. Registration and Continental Breakfast 8:40 a.m. Administrative Remarks ALI-ABA Staff Webcast Segment A 8:45 a.m. Introductory Remarks and Course Overview Mr. Silverman 9:00 a.m. Investment Adjustments and Related Issues Mss. Abell and Pellervo and Messrs. Blanchard, Pari, and Silverman 10:45 a.m. Networking and Refreshment Break 11:00 a.m. Affiliation, Reverse Acquisitions, and Accounting Issues Ms. Ferrell and Messrs. Fleming, Teplinsky, and Wessel 12:30 p.m. Lunch Break Webcast Segment B 2:00 p.m. Current Developments at the Treasury Department Mr. Odintz 2:30 p.m. Intercompany Transactions Messrs. Bakke, Collins, Dubroff, Warnke, and Wilder 3:45 p.m. Networking and Refreshment Break 4:00 p.m. Intercompany Transactions (continued) 5:30 p.m. Adjournment for the Day Friday, October 1, 2010 8:00 a.m. Continental Breakfast and Networking Session Webcast Segment C 8:45 a.m. Acquisition and Separation Issues in Consolidation Ms. Gilbreath-Sowell and Messrs. Gordon, Silverman, Solomon, and Wellen 10:30 a.m. Networking and Refreshment Break 10:45 a.m. Tax Attributes and Consolidation Messrs. Goldring, Hoffenberg, and McManus and Ms. Thigpen 12:30 p.m. Lunch Break xi
Webcast Segment D 2:00 p.m. Loss Disallowance Rules Ms. Nacamuli and Messrs. Alexander, Axelrod, Countryman, and Schler 3:30 p.m. Networking and Refreshment Break 3:45 p.m. Consolidated Group Joint Ventures, Including One-Party Limited Liability Companies (LLCs) Ms. Zarlenga and Messrs. Crnkovich and Nocjar 5:00 p.m. Adjournment Note: the discussions include at least one full hour on ethics and professional responsibility issues, accepted by most, but not all, MCLE jurisdictions. Total 60-minute hours of instructions: 13 xii
ALI-ABA Course of Study Consolidated Tax Return Regulations Cosponsored by the ABA Section of Taxation September 30-October 1, 2010 Washington, D.C. PLANNING CHAIR Mark J. Silverman, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue, NW Washington, DC 20036 202/429-6450 msilverman@steptoe.com FACULTY Theresa A. Abell, Esquire Special Counsel to the Associate Chief Counsel (Corporate) Internal Revenue Service Office of the Associate Chief Counsel CC: Corp Room 5408 1111 Constitution Avenue, NW Washington, DC 20224 William D. Alexander, Esquire Associate Chief Counsel (Corporate) Internal Revenue Service CC:Corp Room 5408 1111 Constitution Avenue, NW Washington, DC 20224 Lawrence M. Axelrod, Esquire Special Counsel to the Associate Chief Counsel (Corporate) Internal Revenue Service Office of the Associate Chief Counsel CC:Corp Room 5004 1111 Constitution Avenue NW Washington, DC 20224 Donald W. Bakke, Esquire Attorney-Advisor, Office of Tax Legislative Counsel U.S. Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 Jerred G. Blanchard, Esquire 5 Houston Center 1401 McKinney Street Suite 1200 Houston, TX 77010 Bryan P. Collins, Esquire Deloitte Tax LLP 555 12th Street, NW Suite 500 Washington, DC 20004 Marc A. Countryman, Esquire 1101 New York Avenue NW xiii
Robert J. Crnkovich, Esquire Senior Counsel Office of Tax Policy U.S. Department of Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 Andrew J. Dubroff, Esquire 5th Floor 1101 New York Avenue, N.W. Kathleen L. Ferrell, Esquire Davis Polk & Wardwell 450 Lexington Avenue New York, NY 10017 Gerald B. Fleming, Esquire Branch 2 Senior Technical Reviewer (Corporate) Office of the Associate Chief Counsel Internal Revenue Service Office of the Associate Chief Counsel CC:CORP: B02, Room 4428 1111 Constitution Avenue, NW Washington, DC 20024 Karen Gilbreath Sowell, Esquire 1101 New York Avenue, NW Stuart J. Goldring, Esquire Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153 Stephen L. Gordon, Esquire Cravath, Swaine & Moore LLP Worldwide Plaza 825 Eighth Avenue New York, NY 10019 Mark R. Hoffenberg, Esquire KPMG LLP 2001 M Street, NW Washington, DC 20036 Richard F. McManus, Esquire Managing Director, Mergers and Acquistion Group PricewaterhouseCooper 1301 K Street NW, 800W Audrey Nacamuli, Esquire Senior Tax Counsel GE Corporate Tax GE 800 Long Ridge Road, Office 2085 Stamford, CT 06927 Aaron P. Nocjar, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue, NW Washington, DC 20036 Mr. Joshua Odintz Chief Tax Counsel The National Commission on Fiscal Responsibility and Reform 1650 Pennsylvania Avenue, NW Washington, DC 20504 Joseph M. Pari, Esquire Dewey & LeBoeuf LLP Suite 1100 1101 New York Avenue, NW Patricia W. Pellervo, Esquire PricewaterhouseCoopers LLP Three Embarcadero Center San Francisco, CA 94111 xiv
Michael L. Schler, Esquire Cravath, Swaine & Moore LLP Worldwide Plaza 825 Eighth Avenue New York, NY 10019 Eric Solomon, Esquire 1101 New York Avenue NW Steven B. Teplinsky, Esquire 5th Floor 1101 New York Avenue, N.W. Bernita L. Thigpen, Esquire KPMG LLP 303 East Wacker Drive Chicago, IL 60601 Robert H. Wellen, Esquire Ivins, Phillips & Barker, Chartered Suite 600 1700 Pennsylvania Avenue, NW Washington, DC 20006 Thomas F. Wessel, Esquire KPMG LLP 2001 M Street, NW Washington, DC 20036 Michael J. Wilder, Esquire McDermott Will & Emery 600 13th Street NW Lisa M. Zarlenga, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue Washington, DC 20036 Gordon E. Warnke, Esquire Dewey & LeBoeuf LLP 1301 Avenue of the Americas New York, NY 10019 NOTE: Please go to www.ali-aba.org/cs022 for biographical information about this faculty. xv
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