IRS T.D.: Elimination of Interbank Offered Rates for Debt Instruments (IRC §1001)

Final regulations that provide guidance on the tax consequences of the transition to the use of reference rates other than interbank offered rates (IBORs) in debt instruments, derivative contracts, and other contracts, issued by the IRS December 30. According to the IRS, the regulations are necessary to address the possibility that an alteration of the terms of a debt instrument or a modification of the terms of other types of contracts to replace an IBOR to which the terms of the debt instrument or other contract refers with a new reference rate could result in the realization of income, deduction, ...