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(Bloomberg) -- The US Treasury Department has expressed concern over a number of high-profile tax strategies touted by Wall Street that it says may be "too good to be true."
Officials told an industry gathering on Tuesday morning in New York the department considers that some of these products may be abusive, and said it is actively evaluating the tools available to address them.
However, they stopped short of announcing new guidelines, saying instead they "expect a serious dialogue with the market before positions harden" and investors are placed at more risk.
The strategies under scrutiny include so-called 351 conversions, box-spread exchange-traded funds, products that offset ordinary income, and funds that avoid dividend income by flipping between other ETFs. Speaking at a Wall Street Tax ***** ociation seminar, Kevin Salinger, deputy ***** istant secretary for tax policy at the Treasury, and Erika Nijenhuis, senior counsel, said the department has no wish to over-engineer rules, but it cannot ignore a market developing around transactions with results Congress did not appear to intend.
#wealthmanagement #market
(Bloomberg) -- The US Treasury Department has expressed concern over a number of high-profile tax strategies touted by Wall Street that it says may be "too good to be true."
Officials told an industry gathering on Tuesday morning in New York the department considers that some of these products may be abusive, and said it is actively evaluating the tools available to address them.
However, they stopped short of announcing new guidelines, saying instead they "expect a serious dialogue with the market before positions harden" and investors are placed at more risk.
The strategies under scrutiny include so-called 351 conversions, box-spread exchange-traded funds, products that offset ordinary income, and funds that avoid dividend income by flipping between other ETFs. Speaking at a Wall Street Tax ***** ociation seminar, Kevin Salinger, deputy ***** istant secretary for tax policy at the Treasury, and Erika Nijenhuis, senior counsel, said the department has no wish to over-engineer rules, but it cannot ignore a market developing around transactions with results Congress did not appear to intend.
#wealthmanagement #market
3 months ago
