23 June 2016 Levin, others ask for consideration of exceptions, transition rules for Section 385 regulations House Ways and Means Committee Ranking Member Sander Levin (D-MI) and other Committee Democrats wrote to Treasury Secretary Jack Lew on June 22, 2016, asking for consideration of whether "exceptions or special rules, including transition rules," are appropriate for proposed debt-equity regulations under Section 385. The letter expressed support for guidance in the area to combat "aggressive tax planning designed primarily to reduce a corporate taxpayer's U.S. income tax liability," but said there may be "a number of unforeseen circumstances in which the regulations could adversely affect ordinary course business transactions between related parties in the absence of tax avoidance motives." It mentions concerns raised about challenges certain business sectors, including financial services, insurance, and utilities, may encounter in implementing the regulations due to various regulatory requirements unique to those industries. "We also have been informed that there are broader concerns related to various internal cash management practices such as cash pooling, and appreciate that Treasury is continuing to examine the effect of the proposed regulations on those practices," the letter stated. The letter, signed by 10 other Democratic members of the Committee in addition to Levin, also requests an opportunity to meet to discuss concerns related to the regulations, prior to the close of the comment period if possible.
Document ID: 2016-1106 | |||||
