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December 29, 2022

BREAKING TAX NEWS | IRS releases interim guidance on excise tax on certain corporate stock buybacks

The IRS has released interim guidance (Notice 2023-2) on the excise tax under IRC Section 4501, enacted by the Inflation Reduction Act, that imposes a 1% surcharge on certain corporate stock buybacks. This provision applies to repurchases after December 31, 2022. Notice 2023-2 provides interim guidance until proposed regulations are issued. A Tax Alert is forthcoming.

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor