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ABA-IRS Releases Final Regs on Tax Implications of Post-Libor Modifications.

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ENPNewswire-January 4, 2022--ABA-IRS Releases Final Regs on Tax Implications of Post-Libor Modifications

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Release date- 03012022 - Shortly before the cessation of two U.S. dollar Libor tenors on Dec. 31, the IRS last week issued final regulations on the tax consequences of the transition away from Libor.

The final regulations address circumstances when modifying a contract to update its reference rate could result in realization of income or losses for federal tax purposes-which, under existing rules, modifications may in certain circumstances be deemed to create a new contract and trigger a taxable event.

The final rules addressed most concerns raised by commenters-including the Alternative Reference Rates Committee, of which the American Bankers Association is a member-among them...

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