Proposal Avoids Tax Consequences for LIBOR Exit

Oct 09, 2019
The Treasury Department and IRS proposed regulations that would avoid adverse tax consequences from switching from interbank offered rates, such as LIBOR, to alternative reference rates.

The proposal responds to guidance from the New York Federal Reserve's Alternative Reference Rates Committee, which is implementing the transition from LIBOR and lauded the proposal.

ICBA serves on the ARRC and encourages community banks to begin preparing for the transition. The ARRC recently released an implementation checklist to help market participants transition from LIBOR.