Treasury And IRS Issue Additional Anti-Inversion Notice

The Treasury Department and the IRS released Notice 2015-79 (the "2015 Notice") on November 19th to further limit expatriation transactions and to supplement the anti-inversion guidance issued by them on September 22, 2014 (the "2014 Notice").

The 2015 Notice states that Treasury and the IRS will issue Treasury regulations to expand the scope of Section 7874 to apply to certain transactions and to address certain post-expatriation transactions so as to limit tax benefits of expatriations. The Treasury regulations announced in the 2015 Notice generally will apply to transactions completed on or after November 19, 2015 (i.e., no grandfathering of previously announced transactions) but, in the case of Treasury regulations limiting tax benefits of expatriations, only if the expatriation transaction was completed on or after September 22, 2014 (i.e., the date of the 2014 Notice).