The New Stock Buyback Tax – Observations and Uncertainties

Legislation enacted this fall imposes a new one percent excise tax on the “buyback” or repurchase of stock by certain publicly traded corporations. This webcast will feature professionals from the KPMG Washington National Tax office and M&A Tax practice who will discuss the basics of this new tax, potential planning considerations, and the uncertainties that may (or may not) be addressed in future guidance. In addition to describing the general operation of the buyback tax, this webcast will discuss:

• Potential “effective date” considerations, such as for taxpayers with fiscal years that include December 31, 2022.
• The statutory exceptions to the excise tax and the general ability to “offset” excise tax liability for issuances during the same tax year.
• Issues and uncertainties regarding the application of the excise tax in the M&A context, including both taxable and tax-free acquisitions and dispositions.