SALT Implications of Proposed Section 385 Debt-Equity Regulations - McDermott Will & Emery

SALT Implications of Proposed Section 385 Debt-Equity Regulations

Overview


Peter Faber wrote this bylined article on the potential state and local tax issues created by proposed revisions to IRC Section 385 regulations. Taxpayers and tax lawyers alike “were taken by surprise” with the revisions, he continued, noting that although they were intended to address corporate inversions, “their application went well beyond inversions, and they apply to intercorporate debt regardless of whether it occurs in an international context.”