Treasury Takes Aim at Wall Street Tax Trades in New Notice

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1. 1h ago

   US Treasury and IRS Target Wall Street Tax Avoidance Strategies

   The US Department of the Treasury and the IRS issued Notice 2026-62 on September 28, 2026, to crack down on tax-avoidance investment strategies. The notice specifically targets tax-aware fund trades, in-kind redemptions, box spread ETFs, and prearranged 351 ETF conversions. This regulatory action aims to eliminate what some call tax alpha strategies used by Wall Street. The Treasury has opened a month-long consultation period to gather input on these rules, signaling a definitive end to several popular tax-slashing techniques.

   Why it matters

   These rules target sophisticated financial maneuvers designed to minimize capital gains taxes. By focusing on ETF structures and security transfers, the government seeks to close loopholes used by institutional investors and fund managers. This move follows Revenue Ruling 2026-20 regarding the tax treatment of ETF security transfers.

   What is confirmed

   • The US Department of the Treasury and the IRS issued a notice on September 28, 2026, targeting tax-avoidance investment strategies.
   • Notice 2026-62 specifically flags box spread ETFs and tax-aware fund trades.
   • The Treasury has initiated a month-long consultation period regarding these new rules.
   • The regulatory action targets prearranged 351 ETF conversions.

   Still unconfirmed

   • The IRS may target crypto ETFs next.
   • The new guidance affects a tax-slashing strategy popularized by AQR.

   What to watch next

   • The conclusion of the Treasury's month-long consultation period.
   • Further IRS guidance regarding the risk level of crypto ETFs.
   • Industry response to the implementation of Revenue Ruling 2026-20.
   Sources used for this update (22)

   1. www.thehindubusinessline.com — Stock Market Today Highlights, Sept 24: Dalal Street hit by crude fire, US yield surge, Nifty closes 1.64....
   2. contents.premium.naver.com — 📬 미국 주식 데일리 종목 분석 (2026.09.25)
   3. www.usfunds.com — Why Berkshire Hathaway Sold Oil and Bought Delta Air Lines - USFunds
   4. Bloomberg.com — Treasury Takes Aim at Wall Street Tax Trades in New Notice
   5. WSJ — Treasury Takes Aim at Tax-Avoiding Investment Strategies
   6. Current Federal Tax Developments — Tax Treatment of ETF Security Transfers: An Analysis of Revenue Ruling 2026-20 and Notice 2026-62
   7. Traders Union — James Seyffart: IRS issues broad notice targeting tax-aware trades and in-kind redemptions
   8. bloomingbit — US Treasury, IRS Target Tax Avoidance Schemes Including Prearranged ETF Conversions
   9. BeInCrypto — The IRS May Be Coming for Crypto ETFs Next: Which Funds Are at Risk?
   10. GuruFocus — IRS Revenue Ruling on ETF Taxation Raises Dividend Safety Questi
   11. Financial Times — US Treasury threatens crackdown on Wall Street tax-avoidance strategies
   12. Bloomberg.com — Tax-Slashing ‘Holy Grail’ Popularized by AQR Dealt IRS Warning
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