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									                                                  REV. RUL. 2010–19 TABLE 5
                                            Rate Under Section 7520 for August 2010
 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
 or a remainder or reversionary interest                                                                                        2.6%

                                                           Applicability Date: For date of applica-     the two taxable years preceding the taxable
                                                        bility, see §1.1502–21T(h)(9)(i). The ap-       year of the loss. Section 172(b)(3) pro-
Section 1288.—Treatment                                 plicability of these regulations will expire    vides that any taxpayer entitled to a carry-
of Original Issue Discount                              on June 21, 2013.                               back period pursuant to section 172(b)(1)
on Tax-Exempt Obligations                                                                               may elect to relinquish the carryback pe-
                                                        FOR       FURTHER         INFORMATION           riod with respect to a loss for any taxable
   The adjusted applicable federal short-term, mid-     CONTACT: Grid Glyer, (202) 622–7930             year. An election to relinquish the carry-
term, and long-term rates are set forth for the month   (not a toll-free number).                       back period pursuant to section 172(b)(3)
of August 2010. See Rev. Rul. 2010-19, page 174.
                                                                                                        must be made by the due date (including
                                                        SUPPLEMENTARY INFORMATION:                      extensions) of the taxpayer’s return for the
Section 1502.—Regulations                               Paperwork Reduction Act
                                                                                                        taxable year of the loss and in the man-
                                                                                                        ner prescribed by the Secretary. Normally,
26 CFR 1.1502–21: Net operating losses.
                                                            These regulations are being issued          this election is irrevocable. A consoli-
                                                        without prior notice and public procedure       dated group is permitted to make this elec-
T.D. 9490                                                                                               tion for its entire consolidated net oper-
                                                        pursuant to the Administrative Procedure
                                                        Act (5 U.S.C. 553). For this reason, the        ating loss (CNOL) pursuant to the proce-
DEPARTMENT OF THE                                                                                       dures provided in §1.1502–21(b)(3)(i). In
                                                        collection of information contained in
TREASURY                                                these regulations has been reviewed and,        addition, §1.1502–21(b)(3)(ii)(B) permits
Internal Revenue Service                                pending receipt and evaluation of pub-          an acquiring consolidated group to make a
26 CFR Parts 1 and 602                                  lic comments, approved by the Office of         separate election to waive, for all taxable
                                                        Management and Budget under control             years of the acquiring group, and solely
Extended Carryback of Losses                            number 1545–2171. Responses to this             with respect to all consolidated net operat-
                                                                                                        ing losses attributable to certain acquired
to or from a Consolidated                               collection of information are required to
                                                        obtain a benefit.                               members, the portion of the carryback pe-
Group                                                                                                   riod for which the acquired corporations
                                                            An agency may not conduct or sponsor,
                                                        and a person is not required to respond to, a   were members of another group. This
AGENCY: Internal Revenue Service
                                                        collection of information unless it displays    election is irrevocable and must be made
(IRS), Treasury.
                                                        a valid control number assigned by the Of-      by the due date (including extensions) of
ACTION: Final and temporary regula-                     fice of Management and Budget.                  the acquiring group for the taxable year of
tions.                                                      For further information concerning this     the acquisition.
                                                        collection of information, and where to            Section 172(b)(1)(H) was amended
SUMMARY: This document contains final                   submit comments on the collection of in-        by the Worker, Homeownership, and
and temporary regulations under section                 formation and the accuracy of the esti-         Business Assistance Act of 2009,
1502 that affect corporations filing con-               mated burden, and suggestions for reduc-        which was signed by the President on
solidated returns. These regulations con-               ing this burden, please refer to the pream-     November 6, 2009 (Public Law 111–92,
tain rules regarding the implementation of              ble to the cross-referencing notice of pro-     123 Stat. 2984) (the Act). As amended,
section 172(b)(1)(H) within a consolidated              posed rulemaking published in this issue of     section 172(b)(1)(H) allows taxpayers
group. These regulations also permit cer-               the Bulletin.                                   to elect to extend the standard two-year
tain acquiring consolidated groups to elect                 Books or records relating to the col-       carryback period for an additional period
to waive all or a portion of the pre-ac-                lection of information must be retained as      of up to three years (Extended Carryback
quisition carryback period pursuant to sec-             long as their contents may become mate-         Period) for a net operating loss arising
tion 172(b)(1)(H) for specific losses attrib-           rial in the administration of any internal      in a single taxable year ending after
utable to certain acquired members. The                 revenue law. Generally, tax returns and tax     December 31, 2007, and beginning before
text of these temporary regulations also                return information are confidential, as re-     January 1, 2010 (Applicable NOL).
serves as the text of the proposed regu-                quired by 26 U.S.C. 6103.                       However, section 172(b)(1)(H) does not
lations (REG–151605–09) set forth in the                                                                apply to any taxpayer if that taxpayer, or
notice of proposed rulemaking on this sub-              Background                                      any member of the taxpayer’s affiliated
ject in this issue of the Bulletin.                                                                     group (within the meaning of the Act), is
                                                           Section 172(b)(1) provides, in part, that    described in section 13(f) of the Act.
DATES: Effective Date: These regulations                a net operating loss for any taxable year          As described in Revenue Procedure
are effective on June 23, 2010.                         must generally be carried back to each of       2009–52, 2009–49 I.R.B. 744, section


2010–31 I.R.B.                                                             176                
								
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