INCOME TAX

T.D. 9240, page 454. REG–106418–05, page 461. Final, temporary, and proposed regulations under section 954 of the Code contain rules for determining whether a controlled foreign corporation’s (CFC’s) distributive share of partnership income is excluded from foreign personal holding company income under the exception contained in section 954(i) (active insurance exception). These regulations will affect CFCs that are qualified insurance companies, as defined in section 953(e)(3), that have an interest in a partnership, and U.S. shareholders of such CFCs.

T.D. 9241, page 427. Final regulations under section 671 of the Code define widely held fixed investment trusts, clarify the reporting obligations of the trustees and the middlemen connected with these trusts, and provide for communication of tax information to beneficial owners of trust interests.

T.D. 9242, page 422. Final regulations under section 368 of the Code define the term statutory merger or consolidation as used in the Internal Revenue Code. The regulations remove the requirement in temporary regulations that transactions must be carried out under domestic law in order to qualify as a statutory merger or consolidation. The regulations also provide that a transaction may qualify even if it involves foreign entities. They also provide a special rule that addresses the qualification as a statutory merger or consolidation of a transaction involving certain entities that are disregarded as entities separate from their corporate owners for federal income tax purposes.

Finding Lists begin on page ii.