Bulletin No. 2003-36 September 8, 2003

T.D. 9066, page 509. Final regulations under section 367 of the Code amend the antiabuse rule of regulations section 1.367(e)–2(d) by narrowing the scope of the rule to apply only to outbound transfers to a foreign corporation in a complete liquidation of a domestic corporation to which a principal purpose of the liquidation is the avoidance of U.S. tax.

REG–209377–89, page 521. Proposed regulations, for purposes of the at-risk limitations under section 465 of the Code, relate to the treatment of amounts borrowed from a person who has an interest in an activity other than that of a creditor or from a person related to a person (other than the borrower) with such an interest. The proposed amendments provide that all activities are subject to the rule that these borrowed amounts do not increase the amount at risk in the activity.