Understanding The Stock Buyback Excise Tax

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As part of the Inflation Reduction Act (P.L. 117-169), Congress introduced a 1% excise tax on all stock buybacks occurring after December 31, 2022. However, Internal Revenue Code section...

United States Tax

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As part of the Inflation Reduction Act (P.L. 117-169), Congress introduced a 1% excise tax on all stock buybacks occurring after December 31, 2022. However, Internal Revenue Code section 4501, which imposes the excise tax, left many questions unanswered. On December 27, 2022, Treasury issued Notice 2023-2, clarifying some of these uncertainties.

Ivins, Phillips & Barker has prepared a presentation on Notice 2023-2 and the stock buyback excise tax, available here.Please contact a member of our Tax team if you have any questions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Authors

James E. Brown

Jonathan L. Holbrook

Jeffrey E. Moeller

Harrison B. Richards

Leslie J. Schneider

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