Shearman & Sterling LLP multinational law firm headquartered in New York City, United States.

balance scale

Jul 21, 2016

Spin-Off Revenue Procedure Removes a No-Rule Area and Provides Safe Harbors for Unwinding High Vote/Low Vote Stock Structures

Subscribe

Jump to...

 
On July 15th, the IRS released Rev. Proc. 2016-40 (the “Rev. Proc.”) removing a recent “no-rule” area with respect to transactions undertaken in anticipation of a spin-off involving high vote/low vote stock classes for the spun-off corporation, and providing safe harbors with respect to subsequent adjustments to the stock structures. The Rev. Proc. is a positive development for taxpayers because the safe harbors provide certainty while the removal of the no-rule area gives taxpayers the opportunity to seek further guidance from the IRS through the private letter ruling process.

View full memo, Spin-Off Revenue Procedure Removes a No-Rule Area and Provides Safe Harbors for Unwinding High Vote/Low Vote Stock Structures

Authors and Contributors

Laurence Bambino

Partner

Tax

+1 212 848 4213

+1 212 848 4213

New York

Laurence Crouch

Partner

Tax

+1 650 838 3718

+1 650 838 3718

Menlo Park

Robert A. Rudnick

Of Counsel

Tax

+1 202 508 8020

+1 202 508 8020

+1 212 848 5033

+1 212 848 5033

Washington DC

Michael Shulman

Partner

Tax

+1 212 848 8080

+1 212 848 8080

New York

D. Kevin Dolan

Of Counsel

Tax

+1 202 508 8016

+1 202 508 8016

Washington DC

Jeffrey Quinn

Of Counsel

Tax

+1 212 848 7335

+1 212 848 7335

+1 202 508 8069

+1 202 508 8069

Washington DC

Nathan Tasso

Partner

Tax

+1 202 508 8046

+1 202 508 8046

Washington DC

Practices