Rules on Agents in Consolidated Groups Can Be Helpful, Practitioners Say

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April 2 — Final IRS rules letting agents resign from consolidated groups and allowing members to ask for new ones provide helpful certainty and could aid taxpayers in difficult situations—but standards for those resignations and replacements would be helpful, practitioners told Bloomberg BNA.

“I think these are good regulations that resolve some of the administrative difficulties that you could face when changing parents of a group,” Gregory Kidder, a partner at Steptoe & Johnson LLP, said April 1.

Issued March 31, the rules (T.D. 9715) allow agents to give up their posts with consolidated groups in limited situations for the first time. In another change, they permit the Internal Revenue Service commissioner to replace agents who aren't doing their jobs properly, and group members for the first time can ask for that replacement (62 DTR G-3, 4/1/15).