Notice 2025-44 proposes the withdrawal of the disregarded payment loss (DPL) rules finalised in January 2025 and extending the transition relief for the interaction of dual consolidated loss (DCL) rules with the OECD/G20 BEPS GloBE model rules.
The US Internal Revenue Service (IRS) has issued Notice 2025-44, proposing to withdraw the disregarded payment loss (DPL) rules finalised on 14 January 2025. The notice also extends the transition relief initially provided in Notice 2023-80.
This relief addresses the interaction between the dual consolidated loss (DCL) rules and the OECD/G20 Inclusive Framework’s BEPS GloBE Model Rules.
Notice 2025-44: Treasury and the IRS intend to issue proposed regulations withdrawing the disregarded payment loss (“DPL”) rules
Issue Number: Notice-2025-44
Notice 2025-44 announces that Treasury and the IRS intend to issue proposed regulations withdrawing the disregarded payment loss (“DPL”) rules under § 1.1503(d)-1(d). The DPL rules were finalised on 14 January 2025, and are applicable with respect to losses incurred in taxable years beginning on or after 1 January 2026.
In addition, this notice announces an extension of the transition relief initially announced in Notice 2023-80 with respect to the interaction of the dual consolidated loss (“DCL”) rules and the model rules published by the OECD/G20 Inclusive Framework on BEPS (the “GloBE Model Rules”). The notice extends the transition relief such that the DCL rules would generally be applied without respect to the GloBE Model Rules for losses incurred in taxable years beginning before 1 January 2028.
Notice 2025-44 will be in IRB:2025-37, dated 8 September 2025.
Earlier, the Treasury Department and the IRS have released the final Rules on Dual Consolidated Losses and the Treatment of Certain Disregarded Payments, which were officially published in the Federal Register on 14 January 2025.
