Tax Rule Aimed at Corporate ‘Earnings Stripping’ Under Review
- Obama-administration regulation drew criticism as overbroad
- Trump ordered review of tax rules that may pose undue burdens
A red stoplight stands in front of the Internal Revenue Service (IRS) headquarters in Washington on May 15, 2013.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
A federal rule aimed at limiting corporate “earnings stripping’’ for tax-avoidance purposes may pose an undue burden on taxpayers and may be changed or rescinded, according to a U.S. Internal Revenue Service notice.
The notice, published Friday afternoon, cites seven other tax-related regulations that will be subjected to additional scrutiny and possible changes later this year, including a controversial measure designed to prevent deep discounts in the valuation of estates for tax purposes.