Tax Notes Quotes Monte Jackel on Disguised Sale Rules Clarification
Monte Jackel, senior counsel in the tax practice at Akin Gump, has been quoted ion the Tax Notes article “News Analysis: Clarification to Disguised Sale Rules Causing Confusion,” which examines the Treasury Department’s recent alteration to the temporary section 707 disguised sale regulations, which is now prompting renewed calls that the rules should have been issued in proposed form.
Jackel, who has focused significantly on the area of partnership taxation, said that, although the existing section 707 regulations say to treat multiple liabilities assumed or incurred in accordance with a plan as “a single liability,” those regulation provisions and examples require a separate computation of each partner’s share of each separate liability before adding them together, indicating that even a mandated “single liability” would have a similar problem. He said clarification is in order.
Jackel also pointed out several “perceived errors and ambiguities” from the Treasury Department, including issues with the effective date provisions in both the temporary regulations and a set of final and proposed regulations issued at the same time.