CCT Comment Letter: Treatment of Certain Interests in Corporations as Stock or Indebtedness (REG-108060-15)

Re: Treatment of Certain Interests in Corporations as Stock or Indebtedness (REG-108060-15)

On April 4, 2016, the United States Department of the Treasury and the Internal Revenue Service (together, “Treasury”) issued proposed regulations under Section 385 of the Internal Revenue Code (the “Proposed Regulations”). If finalized, the Proposed Regulations would cause instruments that would otherwise be treated as debt under federal income tax principles to be characterized as wholly or partially equity for federal income tax purposes.

Financial Executives International (“FEI”)is a leading organization and advocate for the views of corporate financial management. Its more than 10,000 members hold policy-making positions as chief financial officers, treasurers, controllers, tax executives, and other senior-level financial executives at companies from every major industry. FEI enhances member professional development through advocacy, peer networking, career-management services, conferences, research, and publications. The members of FEI’s Committees on Taxation, Treasury, and Corporate Reporting submit this letter to provide comments on the Proposed Regulations. This document represents the views of the Committee on Taxation, Committee on Corporate Treasury, and Committee on Corporate Reporting, and not necessarily the views of FEI or its members individually.

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