Transfer to Corporation Controlled by Transferor

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
UIL: 0351.00-00
December 1, 1999
Number: 200036003
Release Date: 9/8/2000
TAM-107591-99/CC:DOM:CORP:1
MEMORANDUM FOR
Case Manager
FROM: Assistant Chief Counsel (Corporate)
SUBJECT: Technical Advice Memorandum (TAM-107591-99)
Taxpayer =
Subsidiary =
Company =
Date 1 =
Date 4 =
Month 7 = a = d =
In a technical advice memorandum (“TAM”) issued by the Assistant Chief
Counsel (Corporate), the Service concluded that the end result test under the step transaction doctrine is an appropriate test to determine whether to treat a series of cash distributions as taxable “boot” in a § 351 transaction. In the instant case, the end result test requires an examination of whether Taxpayer actually intended on Date 4, when Taxpayer transferred Company assets to Subsidiary, that Subsidiary would make the subsequent cash distributions to Taxpayer. We have the following additional comments with respect to the factual development and litigation hazards of the case.
2
This internal memorandum is confidential and only for your information.
Neither a copy of this memorandum nor its contents should be released to or discussed with the taxpayer.