Proposed regulations on hybrid dividends, payments (text of regulations)

The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register proposed regulations (REG-104352-18) concerning sections 245A(e) and 267A regarding hybrid dividends and certain amounts paid or accrued in hybrid transactions or with hybrid entities.

Sections 245A(e) and 267A were added to the Code by the new U.S. tax law (Pub. L. No. 115-97, enacted December 22, 2017)—the law that is at times referred to as the “Tax Cuts and Jobs Act” (TCJA). The proposed regulations will affect taxpayers that would otherwise claim a deduction related to hybrid dividends or payments and certain shareholders of foreign corporations that pay or receive hybrid dividends.

Read the proposed regulations [PDF 380 KB] (40 pages) as eventually published in the Federal Register on December 28, 2018. Comments and requests for a public hearing are due by a date that is 60 days after December 28, 2018.

The purpose of this report is to provide text of the regulations. Initial impressions about these proposed regulations are provided separately in TaxNewsFlash

The information contained in TaxNewsFlash is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230, as the content of this document is issued for general informational purposes only, is intended to enhance the reader’s knowledge on the matters addressed therein, and is not intended to be applied to any specific reader’s particular set of facts. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
 

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.
 

Direct comments, including requests for subscriptions, to Washington National Tax. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 1801 K Street NW, Washington, DC 20006-1301.
 

To unsubscribe from TaxNewsFlash-United States, reply to Washington National Tax.
 

Privacy | Legal