On December 27, 2022, the IRS and Treasury issued Notice 2023-2 (the “Notice”), which provides guidance relating to the application of the new excise tax on repurchases of corporate stock (the “Stock Buyback Tax”) under Section 4501 of the Internal Revenue Code of 1986, as amended (the “Code”). Among other things, the Notice provides detailed rules for calculating the amount of the Stock Buyback Tax as well as rules relating to the reporting and payment of the tax…
Source: IRS and Treasury Issue Interim Guidance on 1% Stock Buyback Tax