Treasury Notice 2017-36 amends and delays for one year, to Jan. 1, 2019, the IRS’ application of final and temporary regulations under Section 385 regarding documentation necessary to determine whether an interest in a corporation is treated as stock or indebtedness for IRC purposes. After taxpayers raised concerns, these regulations were listed in Notice 2017-38 as needing significant revisions pursuant to President Trump’s Executive Order 13789. TSCPA’s Federal Tax Policy Committee issued related comments on June 29, 2016, and again Aug. 2, 2017, on the broad-sweeping changes.
Notice 2017-36 also requests comments on whether the amendment and delay provide sufficient time for taxpayers to develop necessary systems to comply. The deadline for public comments is Sept. 1, 2017. (IRB 2017-33; Aug. 14, 2017)