Published by TaxNotes
The IRS and Treasury abandoned the embattled “funding rule” in final regulations implementing the 1 percent excise tax on stock buybacks and made welcome changes for reorganizations and preferred stock, tax advisers said. The final regulations (T.D. 10037) released November 21 take a different approach in several areas from the proposed regulations (REG-115710-22) issued in April 2024. The new rules will take effect November 24.
A&M's Mark Schneider underscores just how meaningful these changes are for corporations navigating acquisitive reorganizations. Schneider notes that, in the proposed regulations, taxpayers strongly pushed back on how M&A transactions were being swept into the buyback tax.
“The government ultimately concluded that the rule was better focused on ongoing, traditional stock buyback transactions, and not necessarily ones connected to a corporate life event,” Schneider said. “As a policy matter, it’s a reasonable outcome.”
READ THE FULL ARTICLE
India Tax Alert | Supreme Court Clarifies Taxability on Amalgamation: The “Commercial Realizability” Test
January 13, 2026
In a landmark ruling, the Supreme Court has introduced the “commercial realizability” test to assess taxability in share substitution cases, holding that freely marketable shares with definite commercial value may give rise to taxable business income.
A&M Tax – Monthly Recap of EU and Dutch Tax Developments
January 13, 2026
The “Monthly Recap” is A&M’s monthly newsletter providing a concise overview of EU and Dutch tax developments.
Mexican General Tax Rules for 2026: Changes Applicable to the Financial Sector
January 12, 2026
Overview of MFRL 2026 reforms impacting MITL, VATL, credit institutions, insurers, and capital repatriation compliance in Mexico.
New Hampshire Tax Amnesty Program Provides an Excellent, Limited Time Opportunity to Resolve Prior Period Liabilities
January 7, 2026
A limited-time New Hampshire tax amnesty program offers meaningful relief for unresolved state tax liabilities. The opportunity closes February 15, 2026.
