IRS Publishes Treasury Decision on Excise Tax on Repurchase of Corporate Stock, Correction

The IRS has published a Treasury Decision on corrections to final regulations regarding the excise tax on repurchases of corporate stock made after Dec. 31, 2022. The corrections revise § 58.4501-4 concerning stock issued in E reorganizations and § 58.4501-5 regarding calculation examples for employer-sponsored retirement plan contributions. Specifically, the amendments clarify that stock issued by a recapitalizing corporation qualifies for netting only to the extent exchanged for other stock of the recapitalizing corporation, and provide an example showing how corporations calculate their stock repurchase excise tax base when contributing different classes of stock to retirement plans. The corrections are ...