Taxation Of Financial Institutions And Products

Originally published November 2002

TABLE OF CONTENTS

1. Course Schedule

2. Assignments and Course Reading List

3. Substantive Outlines

   1. Taxation of Commercial Banks and Thrift Institutions

   2. Taxation of Regulated Investment Companies (RICs)

   3. Taxation of Real Estate Investment Trusts (REITs)

   4. Taxation of Real Estate Mortgage Investment Conduits (REMICs)

   5. Taxation of Financial Asset Securitization Investment Trusts (FASITs)

   6. Taxation of Property and Casualty (P&C) Insurance Companies

   7. Taxation of Life Insurance Companies

   8. Taxation of Insurance Products

1. Other Insurance Topics

4. Examples

   COURSE SCHEDULE

   1. Introduction

   2. Taxation of Banks and Thrifts

   3. Taxation of Banks and Thrifts

   4. Taxation of Banks and Thrifts

   5. Taxation of Regulated Investment Companies (RICs), Real Estate Investment Trusts (REITs), Real Estate Mortgage Investment Conduits (REMICs), and Financial Asset Securitization Investment Trusts (FASITs)

   6. Taxation of Regulated Investment Companies (RICs), Real Estate Investment Trusts (REITs), Real Estate Mortgage Investment Conduits (REMICs), and Financial Asset Securitization Investment Trusts (FASITs)

   7. Taxation of Property and Casualty (P&C) Insurance Companies

   8. Taxation of Property and Casualty (P&C) Insurance Companies

   9. Taxation of Life Insurance Companies

   10. Taxation of Life Insurance Companies

   11. Taxation of Life Insurance Companies

   12. Taxation of Insurance Products

   13. Other Insurance Topics

   14. Comparison of Financial Institutions and Review Session

   ASSIGNMENTS AND COURSE READING LIST

1. TAXATION OF BANKS AND THRIFTS (SESSIONS 2-4)

   1. Required Reading

      1. Code Sections:

         Generally §§581-597; §501(c)(1)&(14); §581; §7701(a)(19); §591(a)-(b); §542(c)(2); §166; §165(f)-(g); §1211; §582(a)-(c); §585; §1001; §1221; §172(b)(1)(D); §593; §291; §481; §591; §163; §265; §595; §594; §61(a); §165(c) and (l); §584(a)-(d),(h).

      2. Treasury Regulations:

         § 1.581-1; § 301.7701-13A; § 1.585-2(e)(2)(ii); § 1.165-4; § 1.166-2; § 1.166-3(a)(2); § 1.585-2; §1.585-5 through -8; § 1.593-11; Prop. Treas. Reg. § 1.593-12 to -14; § 1.166-6; § 1.584-4(a)-(b).

         Examples: 1-7.

   2. Suggested Reading

      Cases:

      U.S. v. Seattle First Int'l Corp., 79-2 U.S.T.C. ¶ 9495(D. Wash. 1979); Morris Plan Bank of New Haven v. Smith, 125 F.2d 440 (2d Cir. 1942); Austin State Bank v. Comm'r, 57 T.C. 180 (1973); Cottage Savings Ass'n v. Comm'r, 499 U.S. 554 (1991); Community Trust Bancorp v. U.S., 1999-2 USTC ¶50,698; Bell Federal Savings and Loan Ass'n v. Comm'r, 40 F.3d 224 (7th Cir. 1994); Midwest Sav. Ass'n v. Comm'r, 75 T.C. 262 (1980); Community Bank v. Comm'r, 819 F.2d 940 (9th Cir. 1987); Gilbraltar Financial Corp. of California v. U.S., 825 F.2d 1568 (Fed. Cir.1987).

      Published IRS Guidance:

      Rev. Rul. 58-605, 1958-2 C.B. 358; Rev. Rul. 90-54, 1990-2 C.B. 270; Rev. Rul. 81-18, 1981-1 C.B. 295; Rev. Rul. 92-14, 1992-1 C.B. 93; Rev. Proc. 92-84, 1992-2 C.B. 489; Rev. Rul. 2001-59, 2001-51 I.R.B. 1; Rev. Rul. 55-391, 1955-1 C.B. 306; Rev. Proc. 70-20, 1970-2 C.B. 499; Rev. Rul. 90-44, 1990-1 C.B. 54.

      Informal IRS Guidance:

      LTR 7921016 (Feb. 12, 1979); LTR 8928002 (Mar. 22, 1989); LTR 9423002 (Jan. 25, 1994); LTR 8425059 (Mar. 20, 1984); LTR 8544030 (July 31, 1985); LTR 8929061 (Apr. 26, 1989).

      Legislative History:

      Staff of the Jt. Comm. on Taxation, General Explanation of the Tax Reform Act of 1986 ("1986 Act Bluebook") 549-574; Staff of the Jt. Comm. on Taxation, General Explanation of Tax Legislation Enacted in the 104th Congress ("1996 Act Bluebook") 195-196, 247-256.

      Other:

      Wakely et al., Federal Income Taxation of Banks and Financial Institutions (5th ed.).

      Peat, Marwick, Mitchell & Co., Taxation of Financial Institutions.

      RIA, Federal Tax Coordinator 2d, Volume 8, Paragraphs E-3000 to E- 3800.

2. TAXATION OF RICs, REITs, REMICs, AND FASITs (SESSIONS 5-6)

   1. RICs

      1. Required Reading

         Code Sections:

         §851; §584(a); §852; §243; §4982; §855; §860; §561; §265(a)(3); §854(b); §67(c); §853.

         Treasury Regulations:

         § 1.851-1; § 1.851-5; § 1.852-11; § 1.852-4.

         Examples: 8-10.

      2. Suggested Reading

         Published IRS Guidance:

         Rev. Rul. 88-41, 1988-1 C.B. 253; Rev. Rul. 89-81, 1989-1 C.B. 226; IRS Notice 97-64, 1997-2 C.B. 323; Rev. Rul. 92-56, 1992-2 C.B. 153; Rev. Rul. 92-89, 1992-2 C.B. 154.

         Informal IRS Guidance:

         LTR 8806044 (Nov. 17, 1987); LTR 9006015 (Nov. 8, 1989); LTR 9015011 (Jan. 8, 1990); LTR 9332031 (May 17, 1993).

         Other:

         GCM 39626 (Apr. 29, 1987); IRS Notice 97-64, 1997-47 I.R.B. 7.

   2. REITs

      1. Required Reading

         Code Sections:

         §856; §857; §859; §858; §357(b)(3)(D); §860; §1221(a)(1); §4981; §4982.

         Treasury Regulations:

         § 1.857-6(a).

         Example: 11.

      2. Suggested Reading

         Published IRS Guidance:

         Rev. Rul. 89-130, 1989-2 C.B. 117.

         Informal IRS Guidance:

         LTR 9013043 (Dec. 28, 1989); LTR 9014022 (Jan. 2, 1990); LTR 9826049 (Apr. 1, 1998).

         Other:

         IRS Notice 97-64, 1997-47 I.R.B. 7.

   3. REMICs

      1. Required Reading

         Code Sections:

         §860D; §860B; §860G(a)-(d); §860C; §856(e); §860F; §1276; §171; §860E; §860A.

         Treasury Regulations:

         § 1.860D-1; § 1.860F-2; § 1.860E-2; § 1.860C-2; § 1.860E-1.

      2. Suggested Reading

         Informal IRS Guidance:

         LTR 9033008 (May 17, 1990).

         Other:

         IRS Notice 87-41, 1987-1 C.B. 500; IRS Notice 87-67, 1987-2 C.B. 377.

   4. FASITs

      1. Required Reading

      Code Sections:

      §§860H through 860L.

      Treasury Regulations:

      Prop. Treas. Reg. §1.860L-1; Prop. Treas. Reg. §1.860H-6; Prop. Treas. Reg. §1.860J-1; Prop. Treas. Reg. §1.860H-4; Prop. Treas. Reg. §1.860I-2; Prop. Treas. Reg. §1.860L-2.

   5. LEGISLATIVE HISTORY OF RICs, REITs, REMICs AND FASITs

      1. Staff of the Jt. Comm. on Taxation, General Explanation of the Tax...