US Treasury and IRS Release 2023–2024 Priority Guidance Plan

[35472]

October 03, 2023

TO: Tax Committee SUBJECTS: Fund Accounting & Financial Reporting
Tax RE: US Treasury and IRS Release 2023–2024 Priority Guidance Plan

 

The Treasury Department and the Internal Revenue Service ("IRS") have released the 2023-2024 Priority Guidance Plan, listing their priorities for tax regulations and other administrative guidance through June 2024. Several projects of interest to funds and fund shareholders, which have been requested by the Institute,[1] are included in the plan:[2]

• Guidance under the provisions of Part 2 of Subtitle A of the Inflation Reduction Act regarding computation and reporting of the excise tax under §4501 on the repurchase of corporate stock.
• Regulations relating to the requirements under §355, including the active trade or business requirement and the prohibition on device for the distribution of earnings and profits.
• Final regulations under §305(c) regarding the amount and timing of deemed distributions from conversion ratio adjustments on convertible debt and stock.
• Guidance regarding application of the cure provisions under §851(i) for regulated investment companies (RICs).
• Regulations under §301.7701-3 regarding RICs.
• Guidance relating to the diversification requirements under §817(h) for certain mortgage-backed securities purchased in the To-Be-Announced (TBA) market and for certain TBA contracts.

The 2023-2024 Priority Guidance Plan includes several other items of interest to funds, fund shareholders, and management companies:

• Regulations under §1001 on the modification of debt instruments.
• Guidance on the treatment of fees relating to debt instruments and other securities.
• Guidance on the tax treatment of transactions involving digital assets.
• Regulations under §871(m), including with respect to non-delta-one transactions.
• Guidance updating Rev. Proc. 2015-40, providing the procedures for requesting and obtaining assistance from U.S. competent authority under U.S. tax treaties.
• Revenue procedure under §446, updating Rev. Proc. 2015-13, providing procedures and rules for automatic and non-automatic changes in method of accounting.

 

Katie Sunderland
Associate General Counsel

Keith Lawson
Deputy General Counsel - Tax Law

 

Notes

[1] The Institute's recommendations for the 2023-2024 Guidance Priority Plan are attached.

[2] A separate memorandum will discuss the plan's retirement savings items.