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SEC and IRS Discuss Floating NAV

SEC staff have reportedly met with IRS officials to discuss tax implications if money market funds were to float their NAV.  According to Bloomberg, discussions have centered around the tax treatment of small gains and losses for fund investors.  The IRS is said to have told the SEC that they don’t have much flexibility to interpret current tax law on this point.  These conversations suggest that the SEC is developing a detailed proposal on money market fund reform, that could include a mandate for floating NAV.