November 23, 2015

Treasury & IRS Act Again to Limit “Inversions”

On Friday, the Treasury Department & IRS issued Notice 2015-79 announcing that they intend to issue regulations that will address inversion transactions and certain post-inversion transactions, expanding on guidance previously issued in Notice 2014-52. The widely anticipated “earnings stripping” guidance is absent from this Notice and continues to be pending, but Treasury – in this fact sheet – appears to indicate that it could be issued in the “coming months.” The Notice leaves the “Below-60” Transactions unaffected – but imposes greater adverse consequences for “60-80” Transactions. We are posting memos in our “Tax” Practice Area.