Bulletin No. 2004-38 September 20, 2004

REG–106889–04, page 501. Proposed regulations under section 368 of the Code provide guidance regarding the requirements necessary for a transaction to qualify as a mere change in identity, form, or place of organization of one corporation under section 368(a)(1)(F).

REG–131264–04, page 506. Proposed regulations under section 1502 of the Code provide rules for taking into account items of income, gain, deduction, and loss of members from transactions between members of a consolidated group. Section 1.1502–13(c)(7)(ii), Example 13, illustrates how the matching rules of the intercompany transaction regulations treat manufacturer incentive payments from one member of a group to another. These regulations supplement the fact pattern in this example to provide further guidance regarding the proper treatment of certain of these manufacturer incentive payment transactions under the intercompany transaction regulations.