Forbes on Nostr: IRS Issues Final Regulations For Tax On Corporate Stock Buybacks ========== The IRS ...
IRS Issues Final Regulations For Tax On Corporate Stock Buybacks
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The IRS has issued final regulations that provide guidance on reporting and paying the excise tax on corporate stock repurchases. The regulations implement a new tax code section, Section 4501, which imposes a one percent excise tax on stock repurchases by certain corporations starting after December 31, 2022. The excise tax is at the corporate level and not the shareholder level. The tax applies to public companies and repurchases after December 31, 2022, but does not apply to buybacks of less than $1 million or if the buybacks are contributed to an employee pension or similar plan. Real estate investment trusts (REITs) and regulated investment companies (RICs) are exempt from the tax. The final regulations confirm that the stock repurchase excise tax should be reported on Form 720, Quarterly Federal Excise Tax Return, and a new form, Form 7208, Excise Tax on Repurchase of Corporate Stock, is used to calculate the amount of tax owed. Forms 720 and 7208 are due for taxable years ending after December 31, 2022, and on or before June 30, 2024. The final regulations exempt RICs and REITs from the obligation to file a stock repurchase excise tax return, but they are still subject to recordkeeping requirements. The regulations affect publicly traded domestic and foreign corporations that repurchase their stock or have their stock acquired by certain affiliates after December 31, 2022.
#Irs #Tax #CorporateStockBuybacks #ExciseTax #Regulations
https://www.forbes.com/sites/kellyphillipserb/2024/07/01/irs-issues-final-regulations-for-tax-on-corporate-stock-buybacks/
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The IRS has issued final regulations that provide guidance on reporting and paying the excise tax on corporate stock repurchases. The regulations implement a new tax code section, Section 4501, which imposes a one percent excise tax on stock repurchases by certain corporations starting after December 31, 2022. The excise tax is at the corporate level and not the shareholder level. The tax applies to public companies and repurchases after December 31, 2022, but does not apply to buybacks of less than $1 million or if the buybacks are contributed to an employee pension or similar plan. Real estate investment trusts (REITs) and regulated investment companies (RICs) are exempt from the tax. The final regulations confirm that the stock repurchase excise tax should be reported on Form 720, Quarterly Federal Excise Tax Return, and a new form, Form 7208, Excise Tax on Repurchase of Corporate Stock, is used to calculate the amount of tax owed. Forms 720 and 7208 are due for taxable years ending after December 31, 2022, and on or before June 30, 2024. The final regulations exempt RICs and REITs from the obligation to file a stock repurchase excise tax return, but they are still subject to recordkeeping requirements. The regulations affect publicly traded domestic and foreign corporations that repurchase their stock or have their stock acquired by certain affiliates after December 31, 2022.
#Irs #Tax #CorporateStockBuybacks #ExciseTax #Regulations
https://www.forbes.com/sites/kellyphillipserb/2024/07/01/irs-issues-final-regulations-for-tax-on-corporate-stock-buybacks/