The IRS has proposed new regulations (REG-142561-07) under
Treas. Reg. Sec. 1.1502-77 for determining the agent for a
consolidated group.
Under the existing regulations, the common parent is typically
the default agent for the group. The agent for the group has the
authority to enter into agreements and extensions with the IRS, and
is the member with whom the IRS will directly interact. The
consolidated group may elect, however, a substitute agent.
Moreover, there are existing rules for determining a successor
agent in situations such as a common parent's ceasing to be a
domestic entity (for example, after an inversion where such entity
is "offshored"). The proposed regulations simplify and
streamline these rules given changes in other parts of the Internal
Revenue Code (chiefly with regard to issues surrounding disregarded
entities).
