Accounting Today posted a brief entitled, "IRS offers relief on money market redemptions." It explains, "The Internal Revenue Service issued guidance Friday saying a redemption of shares in a money market fund won'​t be treated as part of a wash sale, which would subject it to taxes. Revenue Procedure 2023-​35 says a redemption of money market fund shares will not be treated as part of a wash sale under Section 1091 of the Tax Code. The revenue procedure amplifies an earlier one from 2014, Revenue Procedure 2014-​45, and extends its wash sale relief to redemptions of shares in money market funds that maintain fixed share prices. The IRS noted that money market funds have historically tried to keep the prices at which their shares are distributed, redeemed and repurchased stable -- usually at $​1.​00 -- with only minimal fluctuations in the value of an MMF'​s portfolio on a per-​share basis. Prior to amendments in 2014, Rule 2a-​7 of the Investment Company Act of 1940 generally allowed a fund to compute its price per share by using either or both of the amortized cost method of valuation, and the penny-​rounding method of pricing. Under the amortized cost method of valuation, a money market fund'​s net asset value per share was determined by valuing its portfolio securities at their acquisition cost, adjusted for amortization of premium or accretion of discount."

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