Fact: The IRS issued proposed regulations on April 9, 2024, that would impact publicly traded domestic corporations and certain publicly traded foreign corporations that repurchase their stock or whose stock is acquired by certain affiliates.
The Treasury Department and the IRS issued proposed rules providing guidance on the 1% excise tax on corporate stock buybacks under the Inflation Reduction Act. The tax applies to publicly traded domestic corporations and certain affiliates. The proposed regulations clarify how to calculate and pay the tax, including reporting on Form 720. The tax aims to ensure large corporations pay their fair share and improve tax fairness.