Derivative Tax Challenges: Navigating the Changing IRS Rules on the Treatment of Swaps and Futures
Since the passage of Dodd-Frank, there have been fundamental changes in the derivatives markets that existing tax rules do not address. While the IRS has issued a handful of proposed and final rules on specific topics, current law is a hodgepodge of rules that are difficult to navigate.
The IRS has finally issued new regulations on swap transfers, assignments and novations. The proposed regulations apply IRC Section 1256 to swaps and futures with surprising results. Learn how they also address the application of IRC Section 956 to upfront payments on swaps and the implications in other contexts.
The panel will explain how the proposed regulations additionally expand the scope of the notional principal contract rules. They address the method of accounting which have languished for years. Counsel will also learn how the regulations require derivatives to be marked to market for tax purposes.
Listen as our distinguished panel reviews and explains how the regulations treat derivative financial products. The panel will discuss the new regulations affecting swap transfers, assignments and initial payments and proposed regulations affecting notional principal contract rules and more.