Law360, New York (February 2, 2009, 12:00 AM EST) -- Proposed legislation would reverse the recent concession by the U.S. Department of the Treasury that waived the limitation on the deduction of losses of a bank that undergoes an ownership change.
In September 2008, the Treasury released IRS Notice 2008-83, which waived the limitation on the deduction of losses on loans and bad debts for a bank that undergoes an ownership change.
Recently proposed legislation threatens to eliminate the benefit created by the notice. There is a limited grandfathering clause for transactions or acquisitions either closed...
Reversing The Benefit To Bank Acquirers
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