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The IRS released on January 10 proposed regulations under Section 382(h) (the 2020 Proposed Regulations), which partially withdraw selected text of the 2019 proposed Section 382(h) regulations (the 2019 Proposed Regulations) primarily relating to the date the final Section 382(h) regulations would become applicable to taxpayers.

The 2019 Proposed Regulations provided a new framework for taxpayers to calculate their net unrealized built-in gains and losses and recognized built-in gains (RBIG) and losses (RBIL) under Section 382(h) that, in turn, affect their ability to use tax attributes. Under the 2019 Proposed Regulations, the final regulations under Section 382(h) would have been effective on their date of publication.