Bulletin No. 2008-31 — Internal Revenue Bulletin 2008-31

T.D. 9402, page 254. REG–102122–08, page 278. Final, temporary, and proposed regulations under section 956 of the Code provide guidance to determine the basis in property acquired by a controlled foreign corporation as a result of certain transactions that otherwise qualify for nonrecognition treatment.

Notice 2008–63, page 261. This notice sets forth and requests comments on a proposed revenue ruling concerning the income, gift, estate, and generation-skipping transfer tax consequences in situations in which family members create a private trust company to serve as the trustee of trusts in which family members are grantors and beneficiaries.

Notice 2008–64, page 268. This notice solicits comments on a proposal to require taxpayers to disclose to the IRS their groupings and regroupings of activities and the addition and disposition of specific activities within the chosen groupings of activities for purposes of section 469 of the Code and regulations section 1.469–4.

Notice 2008–66, page 270. This notice provides for the suspension of certain requirements under section 42 of the Code for low-income housing credit projects in the United States in order to provide emergency housing relief needed as a result of the devastation caused by severe storms and flooding in Missouri beginning on June 1, 2008.

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Rev. Proc. 2008–47, page 272. This procedure describes the conditions under which changes to certain subprime mortgage loans will not cause the Service to challenge the tax status of certain securitization vehicles holding the loans. Rev. Proc. 2007–72, 2007–52 I.R.B. 1257, provided similar guidance regarding fast-track loan modifications that were effected in a manner consistent with certain principles, recommendations, and guidelines (the “Framework”), which the American Securitization Forum (ASF) released on December 6, 2007. On July 8, 2008, the ASF released an updated Framework, which covers additional fast-track loan modifications. Rev. Proc. 2007–72 amplified and superseded.

Announcement 2008–65, page 279. This announcement clarifies that the limited partner described in Rev. Rul. 2008–12, 2008–10 I.R.B. 520, properly includes the allowable amount of his distributive share of the trading partnership’s interest expense in computing the limited partner’s ordinary business income or loss on Schedule E of the partner’s Form 1040. Rev. Rul. 2008–12 clarified.