Proposed Rules on Corporate Stock Buybacks

The Treasury Department and IRS have announced proposed guidance concerning the one percent excise tax owed on corporate stock repurchases. The regulations would impact publicly traded domestic corporations and certain publicly traded foreign corporations that repurchase their stock or whose stock is acquired by certain affiliates.

The regulations would provide that the stock repurchase excise tax must be reported on Form 720, Quarterly Federal Excise Tax Return, with Form 7208 attached. Form 7208, Excise Tax on Repurchase of Corporate Stock, would be used to figure the amount of stock repurchase excise tax owed. Learn more here.