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23 October 2025

Treasury and IRS intend to propose regulations for sourcing borrow fees on securities lending and sale-repurchase transactions

The Treasury Department and IRS on October 23, 2025, in Notice 2025-63, announced their intent to issue proposed regulations that will specify how to determine the source of payments referred to as "borrow fees" or "negative rebate" (collectively, "borrow fees") paid with respect to securities lending and sale-repurchase transactions. Under the proposed regulations, borrow fees would be sourced to the residence of the recipient. A Tax Alert is forthcoming.

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Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor

Document ID: 2025-2145

 

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