Mac swaps, swap futures face new tax threat

Isda urges US tax officials to postpone rule treating certain payments as loans

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Proposed IRS rules would make all non-periodic payments on a swap subject to income tax

The International Swaps and Derivatives Association has requested a further year's delay for proposed US tax rules that would make all non-periodic payments on a swap subject to income tax. A fresh postponement would push the new regime back to 2018.

Non-periodic payments are cropping up more frequently in the over-the-counter and listed markets, as products take off that have standardised coupons – market-agreed coupon (Mac) swaps, deliverable swap futures, and some bilateral swaps transacted b

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