IRS Retracts Proposed Rules on Companies’ Tax-Free Spinoffs (2)

The IRS withdrew proposed regulations on how companies can ensure that their corporate spinoffs and similar transactions are tax-free.

Monday’s move to withdraw two sets of proposed regulations on tax-free spinoffs means taxpayers can continue to use individual private letter rulings to get the IRS’s blessing for their transactions. In a related move Monday, the IRS also made it easier for taxpayers to request and obtain such rulings.

The agency rescindedregulations (RIN 1545-BR32; RIN 1545-BR00) Monday that it had proposed in January on reporting requirements and nonrecognition of gains or losses for transactions under Section 355 ...