Earnings-stripping rules make many changes from proposed regs.

RotenbergMeril Certified Public Accountants

Six months after issuing controversial proposed regulations under Sec. 385 that would recharacterize certain transactions between related parties that are ostensibly debt as equity—curbing the practice of “earnings stripping”—the IRS issued final and temporary regulations (T.D. 9790) that expand on and modify the proposed rules.

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