The Internal Revenue Service has floated guidance to address a tax law concern about rules proposed by the Securities and Exchange Commission that could require money market funds to move to floating net asset values.

The guidance, which appears in Notice 2013-48 proposed by the IRS on Wednesday, describes the circumstances under which the IRS would not treat a redemption of shares in a money market fund with a floating net asset value as part of so-called wash sale, for which the investor could not recognize losses.

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