CCH Tax Day Report
A group of Senate Finance Committee Republicans sent Treasury Secretary Jack Lew a second letter on August 24 expressing concerns regarding Code Sec. 385 proposed debt-equity regulations (NPRM REG-108060-15, I.R.B. 2016-17, 636; TAXDAY, 2016/04/05, I.5). “We have repeatedly raised concerns with you and your staff in regards to the range of negative, unintended consequences of these proposed rules, if finalized without substantial reforms,” the lawmakers wrote.
Republicans and Democrats in both chambers have consistently been contacting the Treasury Department as of late regarding the proposed Code Sec. 385 debt-equity regulations released in April. Senate Finance Committee Chairman Orrin G. Hatch, R-Utah, sent the Treasury a letter last week addressing his concerns with the proposed regulations (TAXDAY, 2016/08/23, C.1).
House Ways and Means Committee Republicans also sent Lew a second letter during the week of August 15 requesting a complete overhaul of the proposed regs. Ways and Means Democrats sent Lew a similar letter in June.
“Small businesses to multinational businesses, which provide jobs and economic growth to our home states, have expressed deep concerns over the proposed rules under Code Sec. 385 being finalized without substantial reforms,” SFC Republicans wrote. According to the lawmakers, the second letter served as a means to clarify the proposed regs that will effect U.S. employers and small businesses, as well as to seek answers on how the Treasury will implement specific requested reforms. SFC Republicans requested a response by August 31.
By Jessica Jeane, Wolters Kluwer News Staff
Senators’ Letter to Treasury Secretary Lew Regarding Code Sec. 385 Regulations