U.S. Code of Federal Regulations

Regulations most recently checked for updates: Oct 28, 2020

§ 1.468B-0 - Table of contents.

This section lists the table of contents for §§ 1.468B-1 through 1.468B-9.

§ 1.468B-1 Qualified settlement funds.

(a) In general.

(b) Coordination with other entity classifications.

(c) Requirements.

(d) Definitions.

(1) Transferor.

(2) Related person.

(e) Governmental order or approval requirement.

(1) In general.

(2) Arbitration panels.

(f) Resolve or satisfy requirement.

(1) Liabilities to provide property or services.

(2) CERCLA liabilities.

(g) Excluded liabilities.

(h) Segregation requirement.

(1) In general.

(2) Classification of fund established to resolve or satisfy allowable and non-allowable claims.

(i) [Reserved]

(j) Classification of fund prior to satisfaction of requirements in paragraph (c) of this section.

(1) In general.

(2) Relation-back rule.

(i) In general.

(ii) Relation-back election.

(k) Election to treat a qualified settlement fund as a subpart E trust.

(1) In general.

(2) Manner of making grantor trust election.

(i) In general.

(ii) Requirements for election statement.

(3) Effect of making the election.

(l) Examples.

§ 1.468B-2 Taxation of qualified settlement funds and related administrative requirements.

(a) In general.

(b) Modified gross income.

(c) Partnership interests held by a qualified settlement fund on February 14, 1992.

(1) In general.

(2) Limitation on changes in partnership agreements and capital contributions.

(d) Distributions to transferors and claimants.

(e) Basis of property transferred to a qualified settlement fund.

(f) Distribution of property.

(g) Other taxes.

(h) Denial of credits against tax.

(i) [Reserved]

(j) Taxable year and accounting method.

(k) Treatment as corporation for purposes of subtitle F.

(l) Information reporting withholding requirements.

(1) Payments to a qualified settlement fund.

(2) Payments and distributions by a qualified settlement fund.

(i) In general.

(ii) Special rules.

(m) Request for prompt assessment.

(n) Examples.

§ 1.468B-3 Rules applicable to the transferor.

(a) Transfer of property.

(1) In general.

(2) Anti-abuse rule.

(b) Qualified appraisal requirement for transfers of certain property.

(1) In general.

(2) Provision of copies.

(3) Qualified appraisal.

(4) Information included in a qualified appraisal.

(5) Effect of signature of the qualified appraiser.

(c) Economic performance.

(1) In general.

(2) Right to a refund or reversion.

(i) In general.

(ii) Right extinguished.

(3) Obligations of a transferor.

(d) Payment of insurance amounts.

(e) Statement to the qualified settlement fund and the Internal Revenue Service.

(1) In general.

(2) Required statement.

(i) In general.

(ii) Combined statements.

(f) Distributions to transferors.

(1) In general.

(2) Deemed distributions.

(i) Other liabilities.

(ii) Constructive receipt.

(3) Tax benefit rule.

(g) Example.

§ 1.468B-4 Taxability of distributions to claimants. § 1.468B-5 Effective dates and transition rules applicable to qualified settlement funds.

(a) In general.

(b) Taxation of certain pre-1996 fund income.

(1) Reasonable method.

(i) In general.

(ii) Qualified settlement funds established after February 14, 1992, but before January 1, 1993.

(iii) Use of cash method of accounting.

(iv) Unreasonable position.

(v) Waiver of penalties.

(2) Election to apply qualified settlement fund rules.

(i) In general.

(ii) Election statement.

(iii) Due date of returns and amended returns.

(iv) Computation of interest and waiver of penalties.

(c) Grantor trust elections under § 1.468B-1(k).

(1) In general.

(2) Transition rules.

(3) Qualified settlement funds established by the U.S. government on or before February 3, 2006.

§ 1.468B-6 Escrow accounts, trusts, and other funds used during deferred exchanges of like-kind property under section 1031(a)(3).

(a) Scope.

(b) Definitions.

(1) In general.

(2) Exchange funds.

(3) Exchange facilitator.

(4) Transactional expenses.

(i) In general.

(ii) Special rule for certain fees for exchange facilitator services.

(c) Taxation of exchange funds.

(1) Exchange funds generally treated as loaned to an exchange facilitator.

(2) Exchange funds not treated as loaned to an exchange facilitator.

(i) Scope.

(ii) Earnings attributable to the taxpayer's exchange funds.

(A) Separately identified account.

(B) Allocation of earnings in commingled accounts.

(C) Transactional expenses.

(iii) Treatment of the taxpayer.

(d) Information reporting requirements.

(e) Examples.

(f) Effective/applicability dates.

(1) In general.

(2) Transition rule.

§ 1.468B-7 Pre-closing escrows.

(a) Scope.

(b) Definitions.

(c) Taxation of pre-closing escrows.

(d) Reporting obligations of the administrator.

(e) Examples.

(f) Effective dates.

(1) In general.

(2) Transition rule.

§ 1.468B-8 Contingent-at-closing escrows. [Reserved] § 1.468B-9 Disputed ownership funds.

(a) Scope.

(b) Definitions.

(c) Taxation of a disputed ownership fund.

(1) In general.

(2) Exceptions.

(3) Property received by the disputed ownership fund.

(i) Generally excluded from income.

(ii) Basis and holding period.

(4) Property distributed by the disputed ownership fund.

(i) Computing gain or loss.

(ii) Denial of deduction.

(5) Taxable year and accounting method.

(6) Unused carryovers.

(d) Rules applicable to transferors that are not transferor-claimants.

(1) Transfer of property.

(2) Economic performance.

(i) In general.

(ii) Obligations of the transferor.

(3) Distributions to transferors.

(i) In general.

(ii) Exception.

(iii) Deemed distributions.

(e) Rules applicable to transferor-claimants.

(1) Transfer of property.

(2) Economic performance.

(i) In general.

(ii) Obligations of the transferor-claimant.

(3) Distributions to transferor-claimants.

(i) In general.

(ii) Deemed distributions.

(f) Distributions to claimants other than transferor-claimants.

(g) Statement to the disputed ownership fund and the Internal Revenue Service with respect to transfers of property other than cash.

(1) In general.

(2) Combined statements.

(3) Information required on the statement.

(h) Examples.

(i) [Reserved]

(j) Effective dates.

(1) In general.

(2) Transition rule.

[T.D. 8459, 57 FR 60988, Dec. 23, 1992, as amended by T.D. 8495, 58 FR 58787, Nov. 4, 1993; T.D. 9249, 71 FR 6200, Feb. 7, 2006; T.D. 9413, 73 FR 39619, July 10, 2008]