Final regulations on transition from interbank offered rates (IBORs) to other reference rates; OIRA review completed

OIRA completed its review of final regulations concerning the transition from interbank offered rates (IBORs) to other reference rates.

OIRA reported it completed its review of final regulations

OMB’s Office of Information and Regulatory Affairs (OIRA) reported it completed its review of final regulations concerning the transition from interbank offered rates (IBORs) to other reference rates.

OIRA’s review was completed on December 20, 2021, and the final regulations are listed on the OIRA website as:

  • RIN: 1545-BO91Guidance on the elimination of interbank offered rates 

A brief description of the final regulations, as provided by OIRA, is:

The final regulations will provide guidance on the tax consequences of the phased elimination of interbank offered rates (IBORs) that is underway in the United States and many foreign countries. Taxpayers have requested guidance that addresses whether a modification to a debt instrument or other financial contract to accommodate the elimination of the relevant IBOR will be treated as a realization event for federal income tax purposes.

The regulations were proposed in October 2019. Read about the proposed regulations in TaxNewsFlash.

 

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