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business within the meaning of section 1.954-2(e)(3)(ii) through
(iv), Income Tax Regs.
B. The Relevant Authorities
1. Section 301.7701-2(a), Proced. & Admin. Regs.
Petitioner argues that “the check-the-box regulations * * *
impose continuity of business enterprise as a consequence of * *
* [a disregarded entity] election”, citing section 301.7701-2(a),
Proced. & Admin. Regs. In pertinent part, that regulation
provides: “If * * * [a business entity with only one owner] is
disregarded, its activities are treated in the same manner as a
sole proprietorship, branch or division of the owner.”
Petitioner argues: “As a consequence [of the above-quoted
regulation], there was as a matter of law and under respondent’s
own check-the-box regulations * * * a continuing business use of
H&C’s assets, which were deemed to be a branch or division of
Dover UK.”
2. The Revenue Rulings
Petitioner also argues that respondent’s position in this
case is “wholly inconsistent with” his position contained in
published revenue rulings, which, under principles derived from
the attribute carryover rules of section 381(c) applicable to
section 332 liquidations, “unequivocally attribute the trade or
business of a subsidiary that is liquidated under section 332 to
its parent.” Therefore, because H&C’s disregarded entity
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