IRS Requests Feedback on Stock/Asset Disparity in Corporate Acquisitions

Overview


Timothy Shuman, speaking on a District of Columbia Bar Association panel, pointed out the lack of regulatory guidance on stock/asset disparity transactions in certain foreign acquisitions that could be subject to tax code anti-inversion rules, saying that concern about the issue has “been there” since current rules came out. Calling the issue real and frequent for taxpayers, Mr. Shuman said, “You might not be able to do a reverse merger in a foreign jurisdiction, … [and] I think in a lot of jurisdictions you can’t do any mergers, so maybe it’s a stock deal in which the issue never arises …, so the issue is not really presented. »