Often, the possibility of payment swap between counterparty and subject differs significantly from all examples of non-period payments identified in the regulations in paragraph 446. Each example in section 446 relates to a fixed non-perioid payment that is reasonably depreciated and accounted for over the life of the swap transaction. It should not be necessary to define the duration of the swap transaction if the economic outcome of the swap transaction can only be determined after the maturity of (1) the eventuality of the counterparty payment obligation and (2), as acknowledged by the IRS, the lack of guidelines on conditional non-commercial payments in the provisions of paragraph 446 and the continued absence of guidelines on the subject of today`s date. Similarly, the potential nature of the counterparty`s obligation to pay the taxpayer makes it difficult to determine whether the non-period payment is significant (and the economic content of the transaction) until the swap transaction expires. As we pointed out on our blog on the Dodd-Frank Financial Regulation Act passed in July 2010, Congress closed the private sector negotiated swap marketplace, which requires the release of certain derivatives transactions on futures exchanges, with the publication of guarantees and compliance controls. Congress and the IRS have focused on taxation and stated that, although swaps are billed on futures exchanges, they still have proper treatment of profits or losses, not lower tax rates under Section 1256 60/40, as many hoped would mean changing rules. Some financial instruments, which otherwise appear to be included in the definition of fictitious main contracts, are not subject to the accounting rules of fictitious main contracts7. 1256 contracts“ in art. 1256, point b), futures contracts, futures contracts, options and contracts that, in accordance with the general principles of federal income tax legislation, constitute debt.8 In addition, the accounting rules applicable to trademarks, not the accounting rules covered by Section 446, govern the treatment of fictitious principal contracts held by securities dealers.9 Swap transactions may allow each party to designate an early termination of swap contracts.