TEI Comments on Proposed Section 163(j) Regulations

On February 26, 2019, TEI submitted responsive comments and recommendations to the IRS Office of Associate Chief Counsel (Income Tax & Accounting) concerning the new proposed regulations under section 163(j) of the Internal Revenue Code, which were published in the Federal Register on December 28, 2018 (REG-106089-18). The proposed regulations would provide rules regarding the limitation on the deduction for business interest expense after the enactment of Public Law 115-97, colloquially known as the Tax Cuts and Jobs Act. TEI’s comments focused intently on two foundational issues that proved to be of greatest mutual concern to our members: the proposed definitions of “adjusted taxable income” and “interest” for purposes of section 163(j).

TEI’s comments were jointly prepared under the aegis of the Institute’s Tax Reform Task Force and Federal Tax Committee, the respective chairs of which are Emily T. Whittenburg and John P. Orr, Jr. Watson M. McLeish, tax counsel for the Institute, coordinated the preparation of TEI’s comments.

Download the letter.