IRS Proposes De Minimis Exception to Wash Sale Rules in Connection with SEC Money Market Fund Floating NAV Proposal

July 30, 2013

The U.S. Internal Revenue Service (IRS) has proposed a new Revenue Procedure (Proposed Revenue Procedure) regarding the application of the wash sale rules under Section 1091 of the U.S. Internal Revenue Code (Code) to floating net asset value (NAV) money market mutual funds (money funds). The IRS issued the Proposed Revenue Procedure in order to mitigate certain tax compliance burdens that the U.S. Securities and Exchange Commission (SEC) outlined in its proposal to require “institutional” money funds to operate with a floating NAV (SEC Proposal).

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