IRS T.D.: Treatment of Distributions of Property From a Corporation to a Shareholder (IRC §301)

Regulations reflect changes under 1988 TAMRA to provide that the amount of a distribution of property made by a corporation to its shareholder is the fair market value of the distributed property, the IRS released September 21. The rules affect shareholders that receive a distribution of property from a corporation, the IRS stated. The current regulations reflect tax code Section 301 prior to TAMRA amendments, the IRS stated. After TAMRA, Section 301(b)(1) provides that, for purposes of Section 301, the amount of any distribution shall be the amount of money received plus the fair market value ...