n-08-83.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

# Part III - Administrative, Procedural, and Miscellaneous

## APPLICATION OF SECTION 382(h) TO BANKS

Notice 2008-83

### SECTION 1. OVERVIEW

The Internal Revenue Service and Treasury Department are studying the proper
treatment under section 382(h) of the Internal Revenue Code (Code) of certain items of
deduction or loss allowed after an ownership change to a corporation that is a bank (as
defined in section 581) both immediately before and after the change date (as defined in
section 382(j)). As described below under the heading Reliance on Notice, such banks
may rely upon this guidance unless and until there is additional guidance.

## SECTION 2. TREATMENT OF DEDUCTIONS UNDER SECTION 382(h)

For purposes of section 382(h), any deduction properly allowed after an
ownership change (as defined in section 382(g)) to a bank with respect to losses on
loans or bad debts (including any deduction for a reasonable addition to a reserve for
bad debts) shall not be treated as a built-in loss or a deduction that is attributable to
periods before the change date.

### SECTION 3. RELIANCE ON NOTICE

Corporations described in section 1 of this notice may rely on the treatment set
forth in this notice, unless and until there is additional guidance.

<!-- PageBreak -->

# SECTION 4. SCOPE

This notice does not address the application of any provision of the Code other
than section 382.

The principal author of this notice is Mark S. Jennings of the Office of Associate
Chief Counsel (Corporate). For further information regarding this notice contact Mark S.
Jennings on (202) 622-7750 (not a toll-free call).