New IRS Procedures for LIBOR Transition
In early October 2020, the IRS released a new revenue procedure as part of the global, ongoing work to prepare for the sunset of the London Interbank Offered Rate (LIBOR) at the end of 2021. In October 2019, the IRS released proposed legislation to provide tax relief related to reference rate reform. However, due to the COVID-19 pandemic, finalization of the legislation has been delayed. Due to recent events and industry feedback on the proposed legislation, the IRS has concluded that interim guidance in advance of finalizing the 2019 proposal is needed. This article provides details on the revenue procedure.