The IRS today released an advance version of Notice 2018-28 that states that the U.S. Treasury Department and IRS will issue proposed regulations as guidance to assist taxpayers in complying with section 163(j) as amended by the new tax law (Pub. L. No. 115-97, enacted December 22, 2017).
Notice 2018-28 [PDF 183 KB] describes the rules that the future proposed regulations will include, and describes the rules as interim guidance until more comprehensive guidance is developed. Today’s notice also states that before the proposed regulations are issued, taxpayers may rely on Notice 2018-28.
Today’s notice states that the future proposed regulations will include rules providing that the calculation of the business interest expense limitation will be made at the level of a consolidated group of corporations. Other rules will clarify certain aspects of new section 163(j).
The IRS today also explained that Notice 2018-28:
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