MFA submitted a comment letter to the IRS on Friday encouraging them to reverse several harmful actions from the previous administration that inhibit capital formation and investor choice and replace them with policies that strengthen markets.
MFA asked that the IRS repeal the following harmful policies:
- Repeal IRS Advice Memo 2023-003, which harms U.S. energy, infrastructure, and real estate companies.
- Withdraw proposed rules that:
- Disadvantage foreign currency trading strategies.
- Increase complexity and compliance costs for passive foreign investment company investments.
- End IRS audits of Self-Employment Contributions Act (SECA) tax which are beyond the IRS’ statutory authority.
And asked that the IRS adopt the following pro-growth reforms:
- Make passive foreign investment company tax compliance simpler and more investor-friendly.
- Protect small and mid-sized businesses from impacts of the Corporate Alternative Minimum Tax.
- Modernize tax rules for the publicly traded partnership safe harbors to prevent duplicative taxation.
- Protect convertible bondholders from “phantom income”.
- Clarify and streamline tax treatment for derivatives trading.
