The U.S. Internal Revenue Service has issued a notice aimed at transactions that use in-kind redemptions across several tax strategies. The language in the notice is broad and covers specific structures designed to create or defer tax outcomes. Examples cited in the source include Section 351 exchanges, box spread strategies, and straddle options. The IRS said these arrangements may be used for improper tax purposes and that it will step up scrutiny of such trades. The related link points to an official IRS document. The update was flagged by @JSeyff.
The U.S. Internal Revenue Service, or IRS, has issued a notice targeting transactions that use in-kind redemptions across multiple tax strategies, saying it will increase scrutiny of those trades.
The notice uses broad language and covers specific arrangements that use in-kind redemptions to create or defer tax outcomes. The transactions mentioned in the source include Section 351 exchanges, box spread strategies, and straddle options.
The IRS said these strategies may be used for improper tax purposes. A related link points to an official IRS document. The update was cited by @JSeyff.
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