Public comments on the proposed regulations must be submitted by July 8, 2024. A public hearing on the proposed regulations is scheduled for August 6, 2024. All interested parties may attend and provide oral comments at the hearing.
Any written comments on the proposed regulations should be sent to the IRS by July 8, 2024. The comments should refer to Notice 2023-12, and they can be submitted electronically at www.regulations.gov, or sent by mail to the IRS at the address provided on the notice.
The proposed regulations outline the application of the new excise tax on corporate stock repurchases under section 4501. The regulations provide guidance on determining the amount of tax owed, as well as certain rules and exceptions that apply to the tax, such as exemptions for certain types of companies and transactions.
The new excise tax is part of Congress’ effort to reduce inflation and raise revenue. It is estimated that the tax will raise $74 billion over ten years, with potential for additional revenue if the tax rate is increased as proposed in President Biden’s budget.
The IRS has issued proposed regulations to provide guidance on the application of the new excise tax. The regulations include rules for reporting and paying the tax, as well as exceptions and exemptions that may apply to certain types of companies or transactions.
The IRS is seeking input from the public on the proposed regulations. Written comments must be submitted by July 8, 2024, and a public hearing is scheduled for August 6, 2024. The final regulations will provide further guidance on the implementation of the new excise tax on stock repurchases by certain corporations.
