Business Groups Slam IRS Stock Buyback Funding Rule Proposal

Tax attorney Joshua Odintz was quoted in a Bloomberg Law article voicing opposition to the IRS' proposed funding rule for stock buyback excise taxes, which he said would unjustly extend the tax to foreign companies with U.S. subsidiary funding. He argued that the federal agency's interpretation of the statute regarding these taxes significantly deviates from the original legislative language and could lead to international double taxation as other countries consider similar proposals. Mr. Odintz's criticisms emphasize the rule's potential to penalize standard business operations and the importance of reevaluating its necessity and implementation.

"This is an extreme leap from the statutory language of Section 4501," Mr. Odintz said.

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