IRS Releases Notice 2017-36, Extending 385 Documentation Requirement Effective Date by 1 Year to 1/1/2019

Treasury Department and IRS released a notice this afternoon providing that the effective date of the documentation requirements within the Section 385 regulations will be delayed by one year, to January 1, 2019.  Section 385 regulations were finalized last October, and are within the scope of the “midnight regulations” that are under review by the Treasury Department and IRS.  Many industry groups have expressed concern that the original effective date of documentation requirements (January 1, 2018) would have been too soon, in light of the significant amount of time and cost to properly comply with the regulations. July 28, 2017