On October 21, 2016, Treasury and the IRS published an extensive package (518 pages!) of final, temporary and proposed regulations under Section 385 addressing debt issued among highly related parties (the “new regulations”). The tax practitioner community was, or at least should have been, largely relieved as these rules omitted or pared back many of the more controversial aspects of the proposed regulations on which they were based. The new regulations, in important part, limited the reach of these rules to apply only to relatively large multinational enterprises and to debt issuers that are domestic entities. Thus, these new regulations should now directly impact a much narrower group of taxpayers and their tax advisors.