Rule2026-02748
Excise Tax on Repurchase of Corporate Stock; Correction
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 11, 2026
Effective
February 11, 2026
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
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.
Full Text
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<title>Federal Register, Volume 91 Issue 28 (Wednesday, February 11, 2026)</title>
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[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02748]
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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.
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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.
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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
N. Dobi of the Office of Associate Chief Counsel (International) at
(202) 317-5469 (not a toll-free number). For all other issues, Kailee
H. Hock of the Office of Associate Chief Counsel (Corporate) at (202)
317-3181 (not a toll-free number).
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
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