The Treasury Department and IRS recently released proposed regulations under the U.S. Internal Revenue Code that, if finalized, would provide guidance on the tax consequences of the transition from Interbank Offered Rates (IBORs) to other reference rates in debt instruments and non-debt contracts. The replacement of an IBOR with a new reference rate in a financial instrument could result in the realization of income, deduction, gain or loss for federal income tax purposes. The Proposed Regulations are intended to reduce the tax costs and uncertainties associated with the transition to other reference rates.