‘Bust-Ups' a Concern Despite Intercompany Gain Rules, IRS Official Says

IRS tried to offer more flexibility in final rules (T.D. 9515) on the redetermination of intercompany gain in transactions involving consolidated groups, but remains concerned about so-called “bust-up” transactions, a senior IRS official says. The 2008 temporary rules (T.D. 9383) “were issued rather quickly,” Lawrence M. Axelrod, special counsel to the IRS Associate Chief Counsel (Corporate), says at a luncheon sponsored by the D.C. Bar Association Tax Section's Corporation Tax Committee.