The U.S. Treasury finalized regulations (the “Regulations”), providing rules for public companies subject to the 1% excise tax on certain redemptions of their publicly traded stock (the “Stock Repurchase Excise Tax”). The Stock Repurchase Excise Tax, which was enacted under the Inflation Reduction Act of 2022 and is generally applicable to repurchases occurring after December 31, 2022, applies to certain issuers (“Covered Corporations”) of publicly traded stock (described further in Section I below)…
Source: 1% Stock Buy Back Tax; Little Relief for Issuers Under Final Tax Regulations