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U.S. Removes Documentation Requirements from Section 385 Debt-Equity Regs

|Approved Changes|United States
United States

The U.S. IRS and Treasury have issued final regulations TD 9880. TD 9880 removes § 1.385-2, which established minimum documentation requirements that ordinarily must be satisfied in order for certain related-party interests in a corporation to be treated as indebtedness for Federal tax purposes. The documentation requirements were introduced as part of debt-equity regulations under section 385…

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