Industry Director Directive on International Hybrid Instrument Transactions Directive # 2
LMSB Control No: LMSB-4-0509-122
Impacted IRM 4.51.5
May 22, 2009
MEMORANDUM FOR INDUSTRY DIRECTORS
DIRECTOR, FIELD SPECIALISTS
DIRECTOR, PREFILING AND TECHNICAL GUIDANCE
DIRECTOR, INTERNATIONAL COMPLIANCE STRATEGY AND POLICY
FROM: Walter L. Harris /s/ Walter L. Harris
SUBJECT: Tier I Issue – International Hybrid Instrument Transactions
Change in Status
The International Hybrid Instrument Transactions Tier I Issue has been moved from an active to monitoring status. We will continue to monitor the issue using the examination guidance provided below.
Field personnel have guidance for Equity in the US transactions under General Legal Advice Memorandum No. 2006001. A Chief Counsel Advice was issued on an Accounts Receivable Factoring Equity in the US case ( CCA 200849012). In addition, Hybrid transactions are also addressed in the Final Regulations issued under Reg Section 1.1503(d). Additional information can be found on the Technical Advisor website.
When examining the issue, examiners should use the UIL Code 385.04-07 Hybrid Instruments (Equity in the US) and 385.04-08 Hybrid Instruments (Debt in the US).
Issue guidance and support will continue through the LMSB Foreign Merger and Acquisition Technical Advisors. The Foreign Merger and Acquisition Technical Advisors will continue to provide assistance to the field including identification, development of the issue and, if needed, assistance with Revenue Agent Reports.
For questions regarding the identification or development of the issue, contact Deborah Childers, Foreign Mergers & Acquisitions Technical Advisor.
This directive is not an official pronouncement of law and cannot be used, cited or relied upon as such.
cc: Commissioner, LMSB
Deputy Commissioner, Operations
Deputy Commissioner, International
Division Counsel, LMSB
Directors, Field Operations
Director, Planning, Quality, Analysis and Support
Director, Research and Workload Identification