Corporate reorganizations and partnership changes

a transfer of a capital construction fund from one person to another person in a transaction to which section 381 of the Internal Revenue Code of 1986 (26 U.S.C. 381) applies may be treated as if the transaction is not a nonqualified withdrawal; and a similar rule shall be applied to a continuation of a partnership (within the meaning of subchapter K of chapter 1 of such Code (26 U.S.C. 701 et seq.)). Under joint regulations— (Source: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1599.))