FEI Asks IRS And U.S. Treasury To Address Liquidity Issue By Extending IRS Notice 2008-91
July 24, 2009
FEI Summary

FEI’s Committee on Corporate Treasury (CCT) and Committee on Taxation (COT) jointly sent a letter to the Internal Revenue Service and U.S. Treasury Department on July 21, 2009 that requests a 12-month extension of IRS Notice 2008-91, extending short-term loan periods from foreign affiliates from 30 and 60 days to 60 and 180 days. Extension of this notice would significantly help United States companies cope with short-term liquidity issues. 

On the whole, current market conditions are not significantly better than those that gave rise to the need for Notice 2008-91.  While some indicators have improved, most have stayed fairly flat or even worsened, in some cases. As such, the FEI committees recommended that the notice be extended for 12 months to allow companies to cope with sudden and unexpected reductions in available credit, market volatility and even liquidity needed for pension-funding requirements.  

Prepared July 24, 2009 by Cady North, manager, Government Affairs, Financial Executives International (FEI). This summary does not represent FEI opinion unless specifically noted above.