Peter Connors Discusses IRS’ Mixed Straddle Final Rules

Law360 | July.18.2014

​Tax partner Peter Connors discussed the impact of the IRS' final rules on mixed straddle transactions on the insurance industry in the article "IRS Mixed Straddle Final Rules Pose Headache for Insurers," published by Law360. The rules prevent taxpayers in mixed straddle transactions from claiming unrealized gains or losses on their investments before entering the straddle, and could have a significant impact on the insurance industry.

Noting that the final regulations will drive investors to adopt more complicated and riskier strategies to offset their losses, Mr. Connors said, "The losses aren't just standing losses in the market; they are anomalies that arose during the financial crisis that companies are trying to use."