IRS Releases Interim “Fallback” Guidance for Updating Financial Instruments to Account for LIBOR and IBOR Phaseout

By John Swendseid and Will Vietti

On October 9, 2020, the Internal Revenue Service released Revenue Procedure 2020-44 to provide guidance for the market’s transition from the U.S. Dollar based London Interbank Offered Rate and other interbank offered rates upon a reference rate dissolution. The Revenue Procedure adopts specific language related to comments and recommendations from the Alternative Reference Rates Committee and the International Swaps and Derivatives Association.

Read the full advisory here.