Treasury Issues Notice Addressing the Expiration of Certain Temporary Regulations under Section 385


On October 11, 2019, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) issued Notice 2019-58. The notice provides that taxpayers may rely on certain proposed regulations under Section 385 that cross reference the temporary regulations under Section 385, which include §§ 1.385-3T, rules dealing with certain distributions of debt instruments and similar transactions, and 1.385-4T, rules dealing with the treatment of consolidated groups. These temporary regulations expired on October 13, 2019.

BDO Insight

Please contact a BDO International Tax Specialist if you would like more information regarding the notice or the regulations under Section 385.