Final Interest Write-Off Rules Not Last Chance for Fee Guidance

If final rules for the tax law’s cap on interest payment write-offs don’t address the treatment of debt-related fees, a future guidance project could do so, an Internal Revenue Service official said.

The agency decided to first focus on finalizing the definition of interest for the purposes of tax code Section 163(j), which set the limit equal to 30% of adjusted taxable income. Still, the issue of how to classify certain debt related fees comes up frequently, Diana Imholtz, with the IRS Office of Associate Chief Counsel, said at an American Bar Association meeting Friday in Boca Raton, Fla. ...