2026-02748: Excise Tax on Repurchase of Corporate Stock; Correction

Federal Register, Volume 91 Issue 28 (Wednesday, February 11, 2026) [Federal Register Volume 91, Number 28 (Wednesday, February 11, 2026)] [Rules and Regulations] [Page 6135] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2026-02748] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. ======================================================================== Federal Register / Vol. 91, No. 28 / Wednesday, February 11, 2026 / Rules and Regulations [[Page 6135]] DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 58 [TD 10037] RIN 1545-BQ59 Excise Tax on Repurchase of Corporate Stock; Correction

Agency

Internal Revenue Service (IRS), Treasury.

Action

Final rule; correcting amendments. -----------------------------------------------------------------------

Summary

This document includes corrections to final regulations (TD 10037) published in the Federal Register (90 FR 53144) on Monday, November 24, 2025, providing guidance regarding the application of the excise tax on repurchases of corporate stock made after December 31, 2022.

Dates

Effective date: These corrections are effective on February 11, 2026. Applicability date: For dates of applicability, see Sec. Sec. 1.1275-6(f)(12)(iii)(B), 58.4501-6, 58.4501-7(r), and 58.6011-1(d).

For Further Information Contact

Concerning Sec. 58.4501-7, Brittany

Supplementary Information

Background The final regulations (TD 10037) subject to these corrections are issued under sections 1275, 4501, and 6011 of the Internal Revenue Code. List of Subjects in 26 CFR Part 58 Excise taxes, Stocks, Reporting and recordkeeping requirements. Correction to the Regulations Accordingly, 26 CFR part 58 is corrected by making the following correcting amendments: PART 58--STOCK REPURCHASE EXCISE TAX 0 Paragraph 1. The authority citation for part 58 continues to read in part as follows: Authority: 26 U.S.C. 4501(f) and 7805. 0 Par. 2. Section 58.4501-4 is amended by revising paragraph (f)(3)(i) to read as follows: Sec. 58.4501-4 Application of netting rule. * * * * * (f) * * * (3) * * * (i) Any stock issued by a recapitalizing corporation as part of a transaction qualifying as an E reorganization, but only to the extent such stock was issued in exchange for other stock of the recapitalizing corporation. * * * * * 0 Par. 3. Section 58.4501-5 is amended by revising paragraph (b)(20)(ii) to read as follows: Sec. 58.4501-5 Examples. * * * * * (b) * * * (20) * * * (ii) Analysis. Corporation X reduces its gross repurchase amount by an amount equal to the sum of the fair market values of the different class of stock at the time the stock is contributed to the employer- sponsored retirement plan ($1,000x + $500x = $1,500x). Corporation X's stock repurchase excise tax base for its 2025 taxable year is $0 ($1,200x repurchase-$1,500x exception). The $300x excess of the contributions qualifying for the exception under Sec. 58.4501-3(d) over the gross repurchase amount ($1,500x exception-$1,200x gross repurchase amount) may not be carried forward or backward to preceding or succeeding taxable years of Corporation X. See Sec. 58.4501- 2(c)(2)(ii). * * * * * Oluwafunmilayo A. Taylor, Chief, Publications and Regulations Section, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2026-02748 Filed 2-10-26; 8:45 am] BILLING CODE 4831-GV-P