Until the IRS issues further guidance, the agency says taxpayers are not required to report or pay the new Sec. 4501 1% excise tax on the value of corporate share repurchases.
Created by the Inflation Reduction Act of 2022, the excise tax included in Sec. 4501 applies to repurchases of stock after Dec. 31, 2022, by covered corporations.
The IRS also said it will make no addition to tax under Sec. 6651(a) (or any other provision of the code) when a corporation does not report or pay the excise tax before the agency issues forthcoming regulations. Learn more.