Proposed rule · 2026-21568

Guidance Under Section 355 Concerning Device and Active Trade or Business; Partial Withdrawal

This document partially withdraws a notice of proposed rulemaking containing proposed regulations regarding the application of the device prohibition and the active trade or business requirement for distributions of controlled corporation stock (or stock and securities) by a distributing corporation without income, gain, or loss. The proposed regulations would affect corporations and their shareholders and security holders.