The IRS today released an advance version of Notice 2016-76 that provides guidance for complying with final and temporary regulations issued under sections 871(m), 1441, 1461, and 1473—referred to as the “section 871(m) regulations”—and explains a phase-in schedule for certain rules under the section 871(m) regulations.
Notice 2016-76 [PDF 266 KB] explains:
Notice 2016-76 states that the IRS and Treasury Department have decided that phased-in application of certain rules—in combination with the expected changes to the final and temporary regulations—will allow for the orderly implementation of the section 871(m) regulations. Accordingly, Notice 2016-76 provides the following phase-in schedule:
Notice 2016-76 further provides that:
Today’s guidance states that the anti-abuse rule provided in Reg. section 1.871-15(o) will apply during the phase-in years (as described in Notice 2016-76). As a result, a transaction that would not otherwise be treated as a section 871(m) transaction (including as a result of this notice), may be a section 871(m) transaction under Reg. section 1.871-15(o).
For more information, contact a tax professional with KPMG’s Washington National Tax:
About section 871(m)
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