IRS Proposes Reguliations on Accounting for Money Market Funds

The IRS has issued proposed regulations providing a simplified method of accounting for gains and losses on shares in money market funds (MMFs) that distribute, redeem, and repurchase their shares at prices reflecting market-based valuation of their portfolio.  The proposed regulations also provide guidance on information reporting requirements for shares in MMFs.  The proposal is in response to changes in SEC rules governing prices at which shares of certain MMFs are issued and redeemed such that they will no longer maintain a constant share price, as they historically have.  Thus, the new regulations are meant to simplify compliance for MMF shareholders subject to SEC rules that affect pricing of MMF shares.

See “IRS Issues Proposed Regs on Accounting for Money Market Funds,” 3014 TNT 142-16 (Jul. 24, 2014).


Posted by Morgan Yuan, Esq., Associate Editor, Wealth Strategies Journal.