Treasury Notice 2008-83 also nixed in Senate

The Senate passed its version of the stimulus package today (HR 1.AS2). As is often the case, it seems there is something for everyone. For example, the Senate generously left intact Wells Fargo’s gift from Hank Paulson and crew, Treasury Notice 2008-83, although the notice has been restricted from further use. The gift is likely to make it into the final bill because the text came from the House version of the bill and was left untouched by the Senate.

SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE.

In other words, Congress is letting stand any bank mergers before Jan. 17 which might have relied on Treasury Notice 2008-83 which gave banks (and only banks) a pass on section 382(h) of the tax code. I provide a basic summary in an earlier post: Revenue Code Section 382: in the face of a financial crisis

Update: This made it through conference and was signed into law by President Obama.

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