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Tax Specialists Seek IRS Guidance on New Stock Buyback Tax

Aug. 18, 2022, 8:45 AM

Tax specialists want the Treasury Department and IRS to issue guidance on the stock buyback tax in Democrats’ economic package, seeking more clarification on the circumstances under which the tax would apply.

The package, which President Joe Biden signed into law Tuesday, includes an excise tax of 1% of the fair-market value of stocks repurchased by publicly traded domestic corporations. The tax doesn’t apply in cases where the total value of a company’s repurchased stock in a year is no more than $1 million.

Tax specialists said there are questions about what types of transactions would trigger the tax beyond ...