On March 20, TEI submitted comments in response to a request for comments in Notice 2023-2, which provided guidance on the stock repurchase excise tax. The comments requested carve-outs from the tax for redemptions of nonparticipating, nonconvertible preferred stock and addressed the funding rule and related per se rule that were introduced in the notice. In particular, the comments requested either the removal of the rules from future guidance or a significant narrowing of the rules, since they are overbroad and go beyond the literal language and purposes of the statute. TEI’s comments were prepared under the aegis of its Federal Tax Committee, chaired by Julia Lagun. Kelly Madigan, TEI tax counsel, coordinated the preparation of the Institute’s comments. Read the comments here.