Aside from the issue of which group or corporation survives, a reverse acquisition also affects other consolidated return issues, such as the application of the separate return limitation year
rules, stock basis adjustments under Regs.
On August 3, 1998, the Treasury Department and the Internal Revenue Service released Notice 98-38, inviting comments on a proposal to replace the current separate return limitation year
(SRLY) rules of the consolidated return regulations with an approach modeled after section 382.
It is possible that they were but that the Thermatool 1 losses were separate return limitation year
(SRLY) losses that could not be used against the income of other members of the consolidated return group.
1502-78(e)(2) provides a special rule that allows certain corporations that become new members of a consolidated group to extend the deadline for filing an application for a tentative carryback adjustment, resulting from losses or credits arising in the new member's last separate return limitation year
382 and separate return limitation year
For example, if a profit is earned enabling the use of deferred tax assets carried forward (but reduced by a valuation allowance) on a separate return limitation year
(SRLY) basis, the use of those deferred tax assets should be recognized in the current year's income statement.
The final consolidated return regulations released July 2, 1999 (TD 8823) are well known among corporate tax practitioners for eliminating the separate return limitation year
(SRLY) limit on pre-acquisition net operating losses (NOLs) of an acquired member when it overlaps with Sec.
Because the loss carryover was subject to the separate return limitation year
("SRLY") restrictions of Treas.
Such guidance is necessitated by the recent adoption of the "overlap rule" providing for the elimination of separate return limitation year
(SRLY) limits in certain transactions also giving rise to a limit under Sec.
The absence of true, rather than chimerical, loss duplication is even more apparent where a consolidated group acquires a corporation with separate return limitation year
(SRLY) net operating loss carryovers, and the SRLY losses are not utlized by the consolidated group.
In an attempt to promote some degree of simplication amid the complexity of consolidated returns, the IRS recently published final separate return limitation year
(SRLY) regulations, which replace the previous regime of dual limitations on attributes (Sec.
Thus, no deduction is allowed in computing ACE for charitable contributions in excess of the limitations of section 170, losses limited by section 277, or amounts in excess of the separate return limitation year