October 6, 1989
TO: TAX COMMITTEE NO. 16-89
CLOSED-END FUND COMMITTEE NO. 43-89
ACCOUNTING/TREASURERS COMMITTEE NO. 42-89
RE: REQUEST FOR REGULATORY GUIDANCE UNDER SECTION 852(b)(3)(C)
__________________________________________________________
As you know, when Congress enacted the Code section 4982
minimum distribution requirements in 1986, numerous changes were
made to the Code in an attempt to provide proper interaction
between the distribution requirements of section 4982 and
Subchapter M. One such provision, the final sentence of section
852(b)(3)(C), provides that "[t]o the extent provided in
regulations, [the provision treating post-October 31 losses as
arising on the first day of the next taxable year for capital
gain designation purposes] shall apply also for purposes of
computing the taxable income of the regulated investment
company."
In the attached letter, the Institute requests that the
regulatory guidance under section 852(b)(3)(C) be issued
promptly.
We will keep you informed of developments.
Keith D. Lawson
Assistant General Counsel
Attachment