On September 15, pursuant to Section 1601 of the Dodd-Frank Act, the IRS proposed rules amending existing regulations regarding Sections 1256 and 446 of the Internal Revenue Code.  The proposed rules provide guidance on the category of swaps and similar agreements that fall within the scope of Section 1256(b)(2)(B) and as a result are excluded from the definition of a Section 1256 contract.  The proposed rules also expand the definition of a notional principal contract under Section 446 to include swaps on non-financial indices.  Comments must be received by December 15.  IRS Proposed Rules.