In addition to the interim guidance the IRS and the Treasury Department released today on the new corporate alternative minimum tax, which was created by the Inflation Reduction Act, the IRS and Treasury also issued Notice 2023-2, which provides interim guidance regarding the application of the corporate stock repurchase excise tax until proposed regulations are issued.

The new code section added by the Inflation Reduction Act imposes a 1% excise tax on the aggregate fair market value of stock repurchased by certain corporations during the taxable year, subject to adjustments. Notice 2023-2 was issued on Tuesday to provide certainty to taxpayers in advance of Jan. 1, 2023, the date on which the new excise tax will apply to stock repurchases, the IRS and the Treasury Department said.

Notice 2023-2 describes certain rules and procedures that the IRS and Treasury intend to include in the forthcoming proposed regulations. Taxpayers may rely upon the information contained in Notice 2023-2 until the forthcoming proposed regulations are issued.