Bookmark and Share [ [link removed] ]
a { color:#0073AF !important;} a:hover { color:#004673 !important;} <!-- body { font-family: arial; } p { font-size: 12px; } li { font-size: 12px; } h2 { font-size: 24px; font-style: italic;} -->
IRS.gov Banner
IRS Newswire January 13, 2025
News Essentials
What's Hot [ [link removed] ]
News Releases [ [link removed] ]
IRS - The Basics [ [link removed] ]
IRS Guidance [ [link removed] ]
Media Contacts [ [link removed] ]
Facts & Figures [ [link removed] ]
Around The Nation [ [link removed] ]
e-News Subscriptions [ [link removed] ]
________________________________________________________________________
The Newsroom Topics
Multimedia Center [ [link removed] ]
Noticias en Español [ [link removed] ]
Radio PSAs [ [link removed] ]
Tax Scams [ [link removed] ]
The Tax Gap [ [link removed] ]
Fact Sheets [ [link removed] ]
IRS Tax Tips [ [link removed] ]
Armed Forces [ [link removed] ]
Latest News Home [ [link removed] ]
________________________________________________________________________
IRS Resources
Contact My Local Office [ [link removed] ]
Filing Options [ [link removed] ]
Forms & Instructions [ [link removed] ]
Frequently Asked Questions [ [link removed] ]
News [ [link removed] ]
Taxpayer Advocate [ [link removed] ]
Where to File [ [link removed] ]
IRS Social Media [ [link removed] ]
________________________________________________________________________
Issue Number: IR-2025-11
Inside This Issue
*Treasury, IRS request comments on proposed regulations and a draft form for certain corporate separations and reorganizations *" """
WASHINGTON – The Department of the Treasury and the Internal Revenue Service today issued proposed regulations for corporate separations and reorganizations [ [link removed] ], including reporting requirements [ [link removed] ] for multi-year corporate separations.
In connection with this proposed guidance, the IRS has posted to IRS.gov a draft version of new Form 7216, Multi-Year Transaction Reporting [ [link removed] ]. These proposed regulations provide comprehensive, authoritative guidance with respect to core provisions of the Internal Revenue Code addressing corporate mergers and acquisitions transactions, and the new form will provide the IRS with necessary information with respect to corporate separations.
Treasury and IRS have proposed this guidance to improve the IRS’s ability to administer the rules in the tax law governing the distribution of stock and securities of a controlled corporation, and to ensure that corporate separations satisfy the requirements to qualify for tax-free treatment. The proposed reporting regulations require certain filers to attach the new Form 7216 to their federal income tax return to provide data to the IRS regarding their multi-year corporation separation. Generally, filers would include the distributing corporation, the controlled corporation and certain significant shareholders or security holders of the distributing corporation.
Importantly, the increased reporting requirements under the proposed reporting guidance would enable Treasury and the IRS to provide increased transactional flexibility through the proposed regulations. Examples of this increased transactional flexibility include addressing retentions of controlled corporation stock, monetization transactions and several other significant issues that arise from multi-year transactions.
The IRS intends to follow these proposed regulations when it issues private letter rulings about certain corporate separations. The IRS plans to issue an update to Rev. Proc. 2024-24 to incorporate these proposed regulations into the procedures for requesting such private letter rulings.
Treasury and IRS invite comments on both the proposed regulations and the new form. Commentors are encouraged to use the Federal e-Rulemaking portal [ [link removed] ] to submit comments on both the proposed substantive regulations (users should indicate “IRS” and “REG-112261-24”) and the proposed reporting regulations and related form (users should indicate “IRS” and “REG-116085-23”). However, comments may also be mailed to: CC:PA:01:PR, Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Comments are due by March 17, 2025. Interested parties can also use the portal and the address above to provide comments regarding the draft of Form 7216 [ [link removed] ].
Back to Top [ #Fifteenth ]
FaceBook Logo [ [link removed] ] YouTube Logo [ [link removed] ] Instagram Logo [ [link removed] ] Twitter Logo [ [link removed] ] LinkedIn Logo [ [link removed] ]
________________________________________________________________________
Thank you for subscribing to the IRS Newswire, an IRS e-mail service.
If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe [ [link removed] ].
This message was distributed automatically from the mailing list IRS Newswire. *Please Do Not Reply To This Message.*
________________________________________________________________________
Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page [ [link removed] ]. You will need your email address to log in. If you have questions or problems with the subscription service, visit subscriberhelp.govdelivery.com [ [link removed] ].
This service is provided to you at no charge by the Internal Revenue Service (IRS) [ [link removed] ].
body .abe-column-block {min-height: 5px;} ________________________________________________________________________
This email was sent to
[email protected] by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535 GovDelivery logo [ [link removed] ]
body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;}
