U.S. Department of the Treasury and IRS Release Proposed Guidance on Stock Buyback Excise Tax to Ensure Large Corporations Pay More of Their Fair Share in Taxes

WASHINGTON – Today, the U.S. Department of the Treasury and Internal Revenue Service (IRS) issued two Notices of Proposed Rulemaking (proposed regulations) on the stock buyback or “repurchase” excise tax included in President Biden’s Inflation Reduction Act, a key provision that helps ensure large corporations pay more of their fair share in taxes. As the tax code has favored stock buybacks, many companies have failed to reinvest profits in their workers, growth, and innovation. The stock buyback excise tax begins to change that.“President Biden’s Inflation Reduction Act helps ensure that large corporations pay their fair share, just as American families do,” said U.S. Secretary of the Treasury Janet L.