Final regulations—what causes property to be “publicly traded” for issue-price purposes 

September 12:   The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9599) to clarify the circumstances that cause property to be “publicly traded”—i.e., traded on an established market—for purposes of determining the issue price of a debt instrument.

The final regulations substantially follow the framework established in January 2011 proposed regulations, but in response to comments, include several changes.


To minimize the effect of the final regulations on pending transactions, the final regulations apply only to debt instruments issued on or after 60 days after the publication date of the final regulations in the Federal Register—which is scheduled for Thursday, September 13, 2012.


Read a September 2012 report [PDF 73 KB] prepared by KPMG LLP.



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©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.