[Code of Federal Regulations]
[Title 26, Volume 6]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.468B-0]

[Page 368]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.468B-0  Table of contents.

    This section contains a listing of the headings of Sec. Sec. 
1.468B-1 through 1.468B-5.

               Sec. 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) Examples.

   Sec. 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.

           Sec. 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.

        Sec. 1.468B-4 Taxability of distributions to claimants.

          Sec. 1.468B-5 Effective dates and transition rules.

    (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.

[T.D. 8459, 57 FR 60988, Dec. 23, 1992, as amended by T.D. 8495, 58 FR 
58787, Nov. 4, 1993]