Common use of Effect on corporation Clause in Contracts

Effect on corporation. Pursuant to § 1.1368–2(a)(3)(iii), X’s AAA is reduced by $6,000 to $4,000. Beginning on No- vember 3, 2020, pursuant to § 1.1371– 1(a)(2)(vii), X’s ETSC period resumes (after the intervening audit PTTP’s conclusion) because its AAA balance is greater than zero.

Effect on corporation. Pursuant to § 1.1368–2(a)(3)(iii), X’s AAA is reduced by $6,000 49,000 to $4,0000. Beginning on No- vember 3Following the initial PTTP, 2020even if X satisfies the require- ments of section 481(d)(2) of the Code and § 1.481–5(b) to be an ETSC, pursuant to § 1.1371– 1(a)(2)(vii), X’s X does not have an ETSC period resumes (after the intervening audit PTTP’s conclusion) because its AAA balance is greater than zero.zero at the end of its initial PTTP. Therefore, section 1371(f) of the Code and § 1.1371–1 will not apply to any subsequent distributions by X.