Note:
Howard C. Yancy, Section 338: The Result of the Legal Evolution of the Tax Treatment of Two-Step Asset Acquisitions 61 TEXAS L. REV. 1109 (1983).
 

Abstract:
This Note comprehensively evaluates section 338 of the Internal Revenue Code, passed in 1982 as the Tax Equity and Fiscal Responsibility Act (TEFRA). Section 338 replaced IRC section 334(b)(2), which provided corporations making indirect asset acquisitions two methods of tax treatment, each with its own intended tax costs and benefits. Congress replaced section 334(b)(2) after interpretation of the provisions created unintended tax benefits. The author examines section 338 in detail and concludes that, although it is imperfect, the section adequately solves the problems that developed with section 334(b)(2).