IRS Provides Additional Q&A Guidance on Section 965
Posted on Jul 16, 2019 in International Tax
On July 16, 2019, the IRS released additional guidance in a Q&A format with respect to section 965. Enacted by the Tax Cuts and Jobs Act, section 965 generally imposes a transition tax on a US shareholder’s pro rata share of the accumulated earnings and profits of certain foreign corporations. The guidance includes information on making subsequent installment payments and filing...
Treasury Releases Final and Proposed GILTI Regulations and Temporary Section 245A Regulations
On June 14, Treasury and the IRS (the Service) released final and proposed regulations on the new global intangible low-taxed income provisions, or GILTI, that were introduced under the Tax Cuts and Jobs Act. Along with finalizing regulations related to determining a US shareholder’s GILTI inclusion and their pro rata share of a CFC’s subpart F income, the regulations also address the...IRS Releases Proposed Regulations Addressing the FDII and GILTI Deduction under Section 250
Posted on Mar 4, 2019 in International Tax, Uncategorized
On March 4, 2019, the IRS released proposed regulations under section 250. Section 250 generally allows a domestic corporation a deduction for its foreign-derived intangible income (FDII) and its global intangible low-taxed income (GILTI). The proposed regulations provide rules for determining the amount of the deduction, including guidance related to the provision’s taxable income...
IRS Issues Final Transition Tax Regulations
On January 15, 2019, the IRS and Treasury released final regulations on the section 965 transition tax. The final regulations largely adopt the basic approach and the structure of the proposed regulations (REG-104226-18) issued on August 9, 2018 but with some changes, including modifications to the election to reallocate basis to reflect the offset of positive earnings with deficits...Discussion Draft of the “Tax Technical and Clerical Corrections Act” Released
Posted on Jan 3, 2019 in International Tax
Rep. Kevin Brady, former Chairman of the House Ways and Means Committee, issued a draft of technical changes to the Tax Cuts and Jobs Act (TCJA) on January 2, 2019, just prior to relinquishing the Chair to Rep. Richard Neal. The dozens of proposed changes, written to implement Congressional intent and correct provisions in the TCJA, include restoration of the applicable recovery...
IRS Releases Proposed Regulations Addressing Hybrid Arrangements
Posted on Dec 21, 2018 in International Tax
On December 20, the IRS released proposed regulations under sections 245A(e) and 267A. Section 245A allows a deduction for certain related party dividends, except in the case of certain hybrid dividends, and section 267A disallows deductions for certain amounts paid in a related-party hybrid transaction or to a related hybrid entity. The proposed regulations under section 267A clarify...
Joint Committee on Taxation Releases Blue Book of TCJA
The General Explanation of Public Law 115-97, prepared by the staff of the Joint Committee on Taxation in consultation with the staffs of the House Committee on Ways and Means, the Senate Committee on Finance, and the Treasury Department’s Office of Tax Policy, was released this week. The explanation provides a discussion of the Tax Cuts and Jobs Act (TCJA) including a description of...IRS Releases Proposed BEAT Regulations
Posted on Dec 14, 2018 in International Tax
On December 13, the IRS released proposed regulations (REG-104259-18) concerning the base erosion and anti-abuse tax (BEAT) under section 59A. Section 59A generally operates as a minimum tax on income without regard to certain deductible payments made to foreign related parties. The new regulations clarify who is an “applicable taxpayer” under the provision, as well as provide further...
OIRA Receives Final Transition Tax Regulations for Review
Posted on Dec 7, 2018 in International Tax, News
On December 6, the Office of Information and Regulatory Affairs (OIRA) received final regulations under section 965, the so-called transition tax. OIRA will have 45 days to review the regulations, as they are not designated for expedited review. The Treasury Department has previously stated that the final regulations will provide additional detail regarding ordering rules for...
Prospects for Year-End Tax Legislation Dim
Posted on Dec 6, 2018 in International Tax
Democratic members of the Senate Finance Committee, including Benjamin Cardin and ranking minority member Ron Wyden, have expressed doubt that the Retirement, Savings and Other Tax Relief Act of 2018 will pass this year. While the bill includes provisions for the retroactive application of tax extenders through 2018, several technical corrections to the Tax Cuts and Jobs Act, and...
OIRA Receives Foreign Partner Sales Regulations
Posted on Dec 5, 2018 in International Tax
On December 4th the Office of Information and Regulatory Affairs (OIRA) received regulations pertaining to the treatment of foreign partners’ gains on the sale of a U.S. partnership. The regulations will provide guidance on section 864(c)(8), enacted by the Tax Cuts and Jobs Act, which treats gain from the sale of an interest in a partnership engaged in the conduct of a U.S. trade or...
IRS Releases Proposed Foreign Tax Credit Regulations
Posted on Nov 29, 2018 in International Tax, News
On November 28, the IRS released proposed regulations (REG-105600-18) concerning the treatment of foreign tax credits and related issues taking into account the changes made by under the Tax Cuts and Jobs Act (TCJA). Foreign tax provisions under the TCJA modified the method for calculating taxable income for purposes of the foreign tax credit limitation; added two additional foreign...
OIRA Receives Section 267A Regulations for Review
Posted on Nov 16, 2018 in International Tax
The IRS on November 13th submitted its proposed section 267A anti-hybrid regulations to the Office of Information and Regulatory Affairs for expedited review. Section 267A of the Tax Cuts and Jobs Act, eliminates deductions for any “disqualified related party amount” paid or accrued through a related hybrid entity or transaction. The regulations are expected to address such issues as...
IRS Releases Priority Guidance Plan for 2018-2019
Posted on Nov 9, 2018 in Individual Taxation, International Tax, Pass-through Taxation, Tax Accounting
On November 8, the IRS and Treasury Department released their priority guidance plan (PGP) for 2018-2019, which includes a number of projects concerning the implementation of the Tax Cuts and Jobs Act. Planned projects include finalizing regulations under sections 199A (the 20% deduction for qualifying business income) and 951A (global intangible low-taxed income) and issuing...
BEAT Regulations submitted to OMB
Posted on Nov 7, 2018 in International Tax
The IRS has submitted its proposed base erosion and anti-abuse tax (BEAT) regulations to the U.S. Office of Management and Budget for review. Under section 59A of the Tax Cuts and Jobs Act (TCJA), the BEAT is an alternative minimum tax on income with deductions for payments between U.S. corporations and their foreign affiliates added back, which is designed to limit shifting of...