TaxNewsFlash-United States

July 20, 2007
No. 2007-319
    
 

Final Regulations Provide Authority to IRS to Designate Domestic Member of Consolidated Group as Substitute Agent for Group When There Is a Foreign Common Parent

The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9343) under section 1502, providing authority to the IRS to designate a domestic member of a consolidated group as a substitute agent to act as the sole agent for the group when a foreign entity is the group’s common parent.

For a computer-scanned version of today’s final regulations: T.D. 9343

Background

In March 2006, temporary and proposed regulations provided the IRS the authority to designate a domestic member of a consolidated group to act as the agent for the group when there was a foreign common parent of the group. The temporary regulations provided procedures for the IRS’s designation of a domestic substitute agent and defined the term of the agency.

No comments were received with respect to the proposed regulations, and no public hearing was requested or held. According to the preamble to today’s final regulations, the proposed regulations are adopted with certain clarifications concerning the term of the domestic substitute agent’s agency. The corresponding temporary regulations are removed, but remain in effect for certain tax years (as indicated in the final regulations).

T.D. 9343 will be published in the Federal Register on Monday, July 23, 2007.
 

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