One of the headline tax changes in the Inflation Reduction Act of 2022, Public Law 117-169, is a 1% excise tax on stock repurchases by public companies. New Section 4501 of the Internal Revenue Code applies a non-deductible 1% excise tax to the fair market value of net stock repurchases by certain publicly traded corporations that take place after December 31, 2022. As we described in our previous client alert, Surprises and Questions Around the New Stock Buyback Tax, after the new law’s enactment, there were many questions regarding the application of the excise tax to certain common transactions, such as tax-free reorganizations and liquidations. In late December, the Treasury Department issued Notice 2023-2, which addresses some of these questions, but others remain unanswered.