Temporary Regulations on Deferred Indebtedness Income and Original Issue Discount Deductions

Summary

The Internal Revenue Service (IRS) has issued temporary regulations under section 108(i) of the Internal Revenue Code, primarily affecting C corporations regarding the acceleration of deferred discharge of indebtedness income and deferred original issue discount deductions, as well as rules for all taxpayers regarding deferred original issue discount deductions resulting from a reacquisition of an applicable debt instrument.