IRS Makes Slight Modifications in Finalizing Regulations on Net Investment Income Tax

The Internal Revenue Service issued highly anticipated final regulations (T.D. 9644) on the net investment income tax that generally retain many of the provisions of the proposed rules, while also making certain modifications and clarifications in a number of rules.

In addition to the final rules, the Service issued proposed regulations (REG-130843-13) on the computation of net investment income, and a withdrawal of a notice of Dec. 5, 2012, proposed regulations.

The net investment income tax imposes a 3.8 percent tax on certain types of income related to certain individuals, estates and trusts under tax code ...