On October 13, 2016, the IRS and the U.S. Treasury Department released final and temporary regulations under IRC Section 385.
Narrower in scope than the proposed regulations, the final and temporary regulations include a number of exemptions. However, the documentation requirements for intercompany debt remain substantially intact with a couple of changes. The documentation will not have to be performed contemporaneously at the time the debt is issued and will apply to debt instruments issued on or after January 1, 2018.
While this provides companies with more time to comply with the documentation requirements under IRC Section 385, there are compelling reasons why companies should still consider documenting all transactions as close to the time of the transaction as possible. Download our complimentary reference guide, "Complying with Final and Temporary IRC Section 385 Regulations," to learn why and how to get ahead of the curve