HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

T.D. 9434, page 339. Final regulations under section 368 of the Code provide guidance on when and to what extent creditors of a corporation will be treated as proprietors of the corporation in determining whether continuity of interest is preserved in a potential reorganization.

T.D. 9435, page 333. REG–150670–07, page 378. Final, temporary, and proposed regulations under section 355 of the Code narrow the reach of section 355(a)(3)(B) to harmonize its application with the application of section 355(b), consistent with the 2006 amendments to section 355(b), the 2007 proposed regulations under section 355(b), and the 2007 grant of authority that was provided in the Tax Technical Corrections Act of 2007. Rev. Ruls. 65–286 and 76–54 obsoleted by T.D. 9435.

REG–113462–08, page 379. Proposed regulations under section 7701(1) of the Code clarify that a disregarded entity is a person for purposes of regulations section 1.881–3.

Notice 2009–8, page 347. This notice provides interim guidance on recently enacted section 457A of the Code which became effective January 1, 2009. Section 457A generally provides that compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is includible in gross income when there is no substantial risk of forfeiture of the right to such compensation. For this purpose, the term nonqualified deferred compensation plan has the meaning provided under section 409A(d), subject to some modifications, and the term nonqualified entity

Finding Lists begin on page ii. Index for January begins on page iv.