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Regulations pending OIRA review: Hybrid dividends and payments

Hybrid dividends and payments

OMB’s Office of Information and Regulatory Affairs (OIRA) has received for review from the U.S. Treasury Department final regulations concerning hybrid dividends and payments and proposed regulations providing guidance under section 1502 and certain other Code sections.


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The 2017 tax law (Pub. L. No. 115-97, the law that is also referred to as the “Tax Cuts and Jobs Act” (TCJA)) included new measures concerning payments made in hybrid transactions or by hybrid entities.

Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before being issued, pursuant to Executive Order 13771. According to OIRA, the regulations received for review on December 16, 2019, are identified as:

  • Final regulations—RIN: 1545-BO53: Hybrid dividends and payments [TCJA]

Regulations addressing certain related party amounts paid or accrued in hybrid transactions or with hybrid entities. These regulations implement sections 245A(e) and 267A of the Internal Revenue Code (added by the TCJA) regarding hybrid dividends (i.e., dividends treated as deductible payments for foreign tax purposes) and certain amounts paid or accrued in hybrid transactions or with hybrid entities.

  • Proposed regulations—RIN: 1545-BP22: Guidance under 1502 and certain other sections [TCJA]

Proposed regulations regarding certain issues under section 1502 and involving hybrid arrangements.

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