Proposed regulations under section 864(c)(8) released to Federal Register

The U.S. Treasury Department and IRS today released for publication in the Federal Register proposed regulations (REG-113604-18) as guidance under section 864(c)(8) concerning tax on the sale of U.S. trade or business partnership interests on a look-through basis. Section 864(c)(8) was added to the Code by the new U.S. tax law (Pub. L. No. 115-97, date of enactment December 22, 2017)—the law that is at times referred to as the “Tax Cuts and Jobs Act” (TCJA). The proposed regulations refer to the Grecian Magnesite Mining case.

Read the proposed regulations [PDF 222 KB] (9 pages)

The proposed regulations are scheduled to appear in the Federal Register on December 27, 2018, and comments and requests for a public hearing are due by a date that is 60 days after December 27, 2018.

The IRS and Treasury provided a version of these proposed regulations on December 20, 2018. The version of the proposed regulations released on December 20, 2018, included a note that the proposed regulations had been submitted to the Federal Register for publication; that such publication was pending; and that the version of the proposed regulations released on December 20 “… may vary slightly from the published document if minor editorial changes are made during the [Federal Register] review process. The document published in the Federal Register will be the official document.”

KPMG previously provided a report of initial impressions about these proposed regulations (based on the December 20th version). Read TaxNewsFlash

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