Requested Withdrawal of Section Two of IRS Notice 2007-55
February 20, 2020
A group of U.S. Representatives wrote to Secretary Mnuchin requesting the Department of Treasury withdraw Section Two of IRS Notice 2007-55 (the "IRS Notice") pertaining to the treatment of liquidating distributions made by a REIT to a foreign taxpayer (which is essentially the sale of shares of stock in the REIT) to a punitive tax that is not levied on other similar types of investments.
Repealing the IRS Notice will restore the intent of Congress with respect to the tax law governing liquidations, provide parity to investors, and increase direct foreign investment in U.S. commercial real estate and infrastructure.