Cadwalader Attorneys Consider Potential Tax Rule Changes By Incoming Administration

Cadwalader attorneys predicted that current Treasury regulations may be modified or nullified under the new administration. In a memorandum titled: The Trump Administration: Tools to Modify Current Tax Guidance, Cadwalader attorneys predict that numerous Treasury regulations may be modified, including the recently issued debt-equity regulations under Internal Revenue Code ("I.R.C.") section 385 (view the relevant Cadwalader memorandum here), and the anti-inversion regulations under I.R.C. section 7874 (view the section-specific Cadwalader memorandum here). The attorneys voiced their expectation that the incoming administration may issue new Treasury regulations and withdraw existing ones simultaneously or, under the Congressional Review Act, Congress may strike down Treasury regulations.