Treasury Issues Guidance on Phaseout of Interbank Offered Rates
The U.S. Department of the Treasury has issued proposed regulations (REG-118784-18) that provide guidance on the tax consequences of the transition to the use of reference rates other than interbank offered rates (IBORs) in debt instruments and non-debt contracts.
The proposed regulations address the possibility that an alteration of the terms of a debt instrument or a modification of the terms of other types of contracts to replace an IBOR with a new reference rate could result in the realization of income, deduction, gain, or loss for Federal income tax purposes or could result in other tax consequences. Written or electronic comments and requests for a public hearing must be received by November 25, 2019. You can view the guidance here.