Nareit Submits Recommendations for the IRS and Treasury Department 2025-26 Priority Guidance Plan

In a letter (pdf) submitted to the Treasury Department and IRS today concerning its 2025-26 Priority Guidance Plan (PGP), Nareit requested the Treasury Department and IRS to issue guidance to:

1. Establish a workable standard for REITs to deploy renewable, nuclear, and other on-site energy in a manner consistent with the REIT rules;
2. Allow for electronic filing of Forms 1120-REIT and 8875;
3. Codify conclusions of certain existing taxpayer-specific private letter rulings into precedential guidance;
4. Exempt transfers to REITs of appreciated assets by foreign corporations not otherwise subject to U.S. tax from the built-in gain rules of Treas. Reg. § 1.337(d)-7; and
5. As requested many times and most recently in a May 28, 2021 letter, withdraw Section 2 of Notice 2007-55, which treats liquidating distributions by REITs to foreign shareholders as taxable under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA).