The Inflation Reduction Act imposed an excise tax on corporate stock repurchases. The excise tax is equal to 1% of the aggregate fair market value (FMV) of stock repurchased by certain corporations during the taxable year. It applies to repurchases made after Dec. 31, 2022. The IRS has issued proposed regulations that would, among other things, implement a statutory netting rule. This rule would reduce the aggregate FMV of stock repurchased by a taxpayer during a taxable year by the aggregate FMV of stock issued by the taxpayer during the taxable year. The proposed regs would impact publicly traded domestic corporations that repurchase their stock. For more details: https://bit.ly/3PTVCTa. Contact us with questions. © 2024