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Tax relief for debt workouts could play a critical role in facilitating our economic recovery. As companies feel the squeeze from coronavirus shutdowns, one natural option would be to turn back on Section 108(i), a temporary provision from 2009 that allowed certain taxpayers to elect to defer cancellation of debt (COD) income. We understand that resurrecting Section 108(i) is coming up on calls between companies and policy advocates. We would not be surprised if these discussions coalesce in an effort to include the provision in future legislation aimed at providing relief for businesses struggling with the COVID-19 outbreak.
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This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document
without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you
have any specific questions on any legal matter, you should consult a professional legal services provider.