Rev. Rul. 2001-46, Sit. 1: Acquisition merger & upstream merger collapsed
Rev. Rul. 2001-46, Sit. 1: Under the facts presented, if, pursuant to an integrated plan, a newly formed wholly owned subsidiary of an acquiring corporation merges into a target corporation, followed by the merger of the target corporation into the acquiring corporation, the transaction is treated as a single statutory merger of the target corporation into the acquiring corporation that qualifies as a reorganization under section 368(a)(1)(A). The policy underlying section 338 is not violated by application of the step transaction doctrine to these facts.