TaxNewsFlash-United States

June 11, 2007
No. 2007-239
    
 

Text of Final Safe Harbor Valuation Regulations, Related IRS Guidance for Dealers in Securities and Commodities

The Treasury Department and IRS today released for publication in the Federal Register final safe harbor valuation regulations (T.D. 9328) for dealers in securities and commodities. Also today, the IRS issued a related revenue procedure (Rev. Proc. 2007-41) which (1) designates securities and commodities that are eligible positions for purposes of the regulations, and (2) illustrates the application of the safe harbor to taxpayers who are both dealers and traders.

For a computer-scanned version of the 25-page final regulations: T.D. 9328

For an electronic version of the revenue procedures: Rev. Proc. 2007-41

Final Regulations

The final regulations adopt, with certain modifications, the approach that was proposed in the May 2005 proposed regulations. The final regulations provide an elective safe harbor method for valuation under section 475 for dealers in securities and in commodities. Under the safe harbor rules, an eligible taxpayer may elect that—if certain conditions and limitations are met—the values reported for certain eligible positions for financial reporting purposes are treated as those positions’ fair market values for purposes of section 475.

T.D. 9328 will be published in the Federal Register on Tuesday, June 12, 2007.

Rev. Proc. 2007-41 will appear in the Internal Revenue Bulletin 2007-26, dated June 25, 2007.
 

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