Statements from Office of the Chief Counsel

IRS request for information regarding the active trade or business requirement for section 355 separations of entrepreneurial ventures

May 6, 2019 — The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) have been studying whether, and to what extent, corporations may utilize the tax-free separation rules of section 355 of the Internal Revenue Code to separate established businesses from newer entrepreneurial ventures that have not collected income but have engaged in substantial research and development (R&D) and other activities.

IRS Statement on Private Letter Ruling Pilot Program Extension

March 12, 2019 - The Internal Revenue Service announced today that the pilot program for private letter rulings that address certain corporate stock distributions has been extended indefinitely.

IRS statement regarding the active trade or business requirement for section 355 distributions

Sept. 25, 2018 — The IRS is providing this statement to inform taxpayers and their advisers of a study regarding the active trade or business (ATB) requirement under section 355(b) of the Internal Revenue Code, to request comments on the matters under study, and to indicate that the IRS will entertain requests for private letter rulings as described below.

IRS statement regarding private letter rulings on certain corporate transactions

Oct. 13, 2017 — The Internal Revenue Service is providing this statement to inform taxpayers and their advisers of changes relating to requests for private letter rulings on certain corporate transactions.