Issue Number: Notice 2026-61

Inside This Issue

Notice 2026-61 generally would extend the transition relief provided in Notice 2024-44 by (1) limiting section 871(m) transactions to delta-one transactions through 2028, (2) applying the good faith effort standard for delta-one transactions through 2028 and non-delta-one transactions for 2029, (3) providing that QDDs will be considered to satisfy their QDD obligations under the QI agreement through 2028 if they make a good faith effort to comply and will not be required to perform a periodic review with respect to their QDD activities for 2027 or 2028, (4) only combining OTC contracts that are priced, marketed, or sold in connection with each other for 2027 and 2028, (5) providing that QDDs will not be subject to tax on dividends and dividend equivalents received in 2027 and 2028 in their equity derivatives dealer capacity or withholding on those dividends, and (6) permitting withholding agents to apply the qualified securities lender regime for payments made in 2027 and 2028.

NOTICE 2026-61 WILL BE IN IRB: 2026-43  DATED: October 19, 2026.

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