IRS puts credit derivativesunder spotlight

Nobody likes arousing interest from the taxman, but, aware of confusion about the tax status of payments in credit derivative contracts, participants in the US market have sought guidance from the US Internal Revenue Service (IRS). In response, the IRS and Treasury have issued a joint notice requesting information from the market so that they can clarify the tax treatment of credit derivatives. For dealers and end-users, an unfavourable decision may cost them millions of dollars in