IRS Priority: Guidance Regarding Repurchase of Corporate Stock

Part of the IRS’s 2022-2023 Priority Guidance Plan includes providing guidance under the provisions of the Inflation Reduction Act (Pub. L. No. 117-169) regarding computation and reporting of the excise tax under I.R.C. § 4501 on the repurchase of corporate stock. Issuing Notice 2023-3 in the last days of 2022, IRS addressed application of the new excise tax on repurchases of corporate stock, providing taxpayers with interim guidance until publication of the proposed regulations. IRS promises in a Treasury Press Release that guidance is coming regarding other provisions of the Inflation Reduction Act.

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