IRS Withdraws 2017 Tax Law’s Loss-Acquisition Proposed Rules (1)

The IRS Tuesday withdrew rules that would limit losses acquired through a merger that can be used for tax write-offs for a company.

The proposed rules (RIN:1545-BP07) under Section 382(h) prevent companies from trafficking in losses by restricting a target company’s ability for decrease tax liabilities.

The IRS and Treasury Department said they will continue to review the issue and expect to release a revised rule.

• The agencies attempted to create built-in gain and loss rules in 2019 under the 2017 tax law but were met with criticism that the rules would kick companies while they’re down ...