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June 29, 2023

IRS publishes final regulations replacing 30-day USD LIBOR under Treas. Reg. Section 1.882-5(d)(5)(ii)(B)

In final regulations, the IRS specified the new reference rate that will replace the 30-day US dollar Interbank Offered Rate (USD LIBOR) under Treas. Reg. Section 1.882-5(d)(5)(ii)(B). Previously, Treas. Reg. Section 1.882-5(d)(5)(ii)(B) permitted foreign banks to elect a rate referencing the 30-day LIBOR when computing interest expense attributable to excess US-connected liabilities. A Tax Alert on the final regulations is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Maureen Sanelli, legal editor