IRS, Treasury Working on Proposed Rules for Tax-Free Spinoffs

The IRS and the Treasury Department are actively working on proposed regulations on the standards for tax-free corporate spinoff transactions, officials said Monday.

The regulations, under Section 355, are currently “front and center,” said Mark Schneider, associate chief counsel (corporate) at the IRS, speaking at a virtual meeting of the American Bar Association’s tax section. He didn’t specify when the proposed regulations might be issued, but said, “we want to get something out.”

The proposed regulations have gone as far as a draft, said Colin Campbell, associate tax legislative counsel at Treasury.

Section 355 allows companies to ...