SECTION 5. EFFECTIVE DATES

Except as provided in this section 5, the regulations described in section 2.02(a) (which requires the foreign acquiring corporation to be subject to tax as a resident of the relevant foreign country in order to have substantial business activities in the relevant foreign country), section 2.02(b) (which disregards certain stock of the foreign acquiring corporation in third-country transactions), section 2.03(b) (which clarifies the definition of nonqualified property in § 1.7874–4T), section 4.01(b) (which modifies the definition of foreign group nonqualified property in Notice 2014–52), and section 4.02(b) (which provides a de minimis exception to the rules announced in Notice 2014–52 regarding certain distributions of

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a domestic entity that are disregarded) will apply to acquisitions completed on or after November 19, 2015. In addition, except as provided in this section 5, the regulations described in: (i) section 3.01(b) (which provides that inversion gain includes certain income or gain recognized by an expatriated entity from an indirect transfer or license of property and provides aggregate treatment for certain foreign partnerships for purposes of determining inversion gain) will apply to transfers or licenses of property occurring on or after November 19, 2015, but only if the inversion transaction is completed on or after September 22, 2014; (ii) section 3.02(b) (which requires the recognition of realized stock gain in certain specified exchanges) will apply to specified exchanges occurring on or after November 19, 2015, but only if the inversion transaction is completed on or after September 22, 2014; and (iii) section 4.03 (which clarifies certain exceptions to the rules announced in Notice 2014–52 regarding transactions to de-control or significantly dilute CFCs) will apply to specified transactions and specified exchanges completed on or after November 19, 2015, but only if the inversion transaction is completed on or after September 22, 2014.

Taxpayers may elect to apply the rules in sections 4.01(b) of this notice (which modifies the definition of foreign group nonqualified property in Notice 2014–52) and 4.02(b) of this notice (which provides a de minimis exception to the rules announced in Notice 2014–52 regarding certain distributions of a domestic entity that are disregarded) to acquisitions completed before November 19, 2015.

No inference is intended regarding the treatment under current law of the transactions described in this notice. The IRS may challenge such transactions under applicable Code provisions or judicial doctrines.