On Friday, July 28, 2017, the Department of the Treasury and the Internal Revenue Service issued Notice 2017-36 announcing their intention to delay by 12 months the application of the intercompany debt documentation rules under Treasury Regulations § 1.385-2 to January 1, 2019. Without this delay, these regulations would have become effective, with respect to debt issued, on or after January 1, 2018. Pending the formal amendment of the effective date, taxpayers are permitted to rely on the delayed application in this Notice.
The regulations that are the subject of the Notice relate to the documentation generally necessary to be prepared and maintained for certain intercompany debt to be treated as debt for federal income tax purposes. Notice 2017-38 recently identified these regulations as significant tax regulations requiring additional review pursuant to Executive Order 13789.