Ways and Means Chairman Kevin Brady (R-TX) today released a statement following a bipartisan meeting with Treasury Secretary Jacob Lew concerning the regulations proposed under section 385.
The regulations under section 385 were proposed in April 2016 regarding the treatment of certain related-party corporate interests as debt or equity for U.S. federal income tax purposes. The final regulations are still pending and have not been released.
According to the statement, Chairman Brady asked that Treasury “…slow the process down, make all the necessary changes, and conduct a true cost benefit analysis. Instead of finalizing the regulations now, the Administration should issue new proposed regulations that address stakeholders’ serious concerns.”
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