ICI Submits Comment on IRS Draft Form 7208 (Excise Tax on Repurchase of Corporate Stock)

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January 23, 2024

TO: ICI Members
Tax Committee SUBJECTS: Closed-End Funds
Fund Accounting & Financial Reporting
Tax RE: ICI Submits Comment on IRS Draft Form 7208 (Excise Tax on Repurchase of Corporate Stock)

 

ICI submitted a comment on IRS Draft Form 7208 (Excise Tax on Repurchase of Corporate Stock) requesting that regulated investment companies (RICs) be exempt from filing the form as Internal Revenue Code section 4501(e)(5) expressly excludes RICs from the excise tax on repurchases of corporate stock. The draft form, because it provides a line (5c) on which RICs are to report their stock repurchases, strongly implies that RICs must file the form. Specifically, ICI requested that the draft form eliminate line 5c and that the form's instructions should provide expressly that an investment company that is a RIC for the entire reporting period is exempt from filing the form. 

Attached is a pdf copy of the comment that was submitted through the IRS comment portal.

 

Katie Sunderland
Associate General Counsel