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New 1% Excise Tax on Repurchases of Corporate Stock
September 10 @ 1:00 pm – 2:00 pm EDT
Free
1 CPE credit
The Inflation Reduction Act (IRA) enacted on August 16, 2022, created a new corporate excise tax on stock repurchases for taxable years beginning after December 31, 2022. The excise tax under the new Section 4501 of the Internal Revenue Code is a 1% tax imposed on the fair market value of stock redeemed during the taxable year, net of the fair value of stock issued.
On December 27, 2022, the Treasury Department and the Internal Revenue Service issued interim guidance on the stock excise tax. And subsequently on April 9, 2024, the Treasury Department and the IRS issued proposed regulations proving guidance on the application and reporting of the corporate excise tax on stock repurchases by some publicly traded corporations.
