Final regulations, excise tax on college net investment income; OIRA review completed

Excise tax on college net investment income

OMB’s Office of Information and Regulatory Affairs (OIRA) reported that it has completed its review of final regulations under section 4968 relating to the excise tax on college net investment income.

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The 2017 U.S. tax law (Pub. L. No. 115-97, the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA)) created an excise tax on the net investment income of some private colleges and universities. The Treasury Department and IRS in late June 2019 issued proposed regulations as guidance concerning this excise tax. At the time of the release of the proposed regulations, there were many difficult questions left unanswered. Read TaxNewsFlash

According to OIRA, review of these final regulations was completed on September 8, 2020: 

  • RIN: 1545-BO75: Guidance on section 4968 excise tax on college net investment income

Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before being issued, pursuant to Executive Order 13771. Now that OIRA review of these final regulations has been completed, their release is expected but the exact date of release is unknown.
 

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com

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