International Tax

Topics

November 1, 2023

Recovery of excess FICA taxes paid for foreign employees

Chief Counsel Advice memorandum 202323005 centers on whether an employer is eligible to receive a refund for an overpayment of FICA tax paid on behalf of an employee on a foreign assignment in a year after the calendar year in which wages were paid, without the employer’s first repaying or reimbursing the employee the employee’s portion of Social Security tax.

October 1, 2023

Rethinking international penalty administration

This item explores the Farhy decision and its impact on international penalties.

October 1, 2023

Aggregation rules affecting foreign-owned companies

Multinational businesses should carefully consider whether the aggregation rules may trigger the application of unfavorable tax rules for their U.S. subsidiaries.

October 1, 2023

FBAR reporting requirement is not unconstitutional

FBAR requirement does not violate Fourth, Fifth, Ninth, or Tenth amendments to the Constitution.

September 1, 2023

Impact of the OECD global anti–base erosion model rules on GILTI

The recent focus of the OECD on overhauling the current corporate cross-border tax rules is in response to the digital economy and current operational trends of multinational organizations in low-tax jurisdictions.

September 1, 2023

Proposed PFIC regulations could complicate elections and reporting

Proposed regulations would extend to PFICs the aggregate treatment of U.S. partnerships and S corporations for Subpart F income.

September 1, 2023

Integrating transfer pricing and ESG: Practical considerations

This item outlines a framework and approach for in-house tax professionals to consider when endeavoring to align transfer pricing operations within the broader context of ESG strategy.

August 1, 2023

Redetermining foreign taxes in a post-TCJA world

Changes by the law known as the Tax Cuts and Jobs Act, P.L. 115-97, and regulations to the foreign tax redetermination rules increase taxpayers’ likelihood of having FTRs and a greater administrative burden.

August 1, 2023

Passthrough-entity treatment of foreign subsidiary income

Entities such as S corporations and partnerships, as well as sole proprietorships, should carefully consider the U.S. tax treatment of foreign subsidiaries.

July 1, 2023

FDII deduction: Options for determining taxable income

This discussion highlights uncertainties that may arise in determining a corporation’s taxable income for purposes of calculating its foreign-derived intangible income deduction under Sec. 250.

July 1, 2023

IRS cannot assess Sec. 6038(b) penalties

The IRS does not have statutory authority to assess Sec. 6038(b) penalties.

June 1, 2023

Transfers of PTP interests: Options for foreign intermediaries

This item summarizes the options available to foreign intermediaries for transfers of PTP interests under current guidance and comments on some practical benefits and burdens of each.

June 1, 2023

What the Inflation Reduction and CHIPS acts could mean for US importers

This item discusses what the Inflation Reduction and CHIPS acts could mean for U.S. importers, beginning with the CHIPS Act.

June 1, 2023

Pillar 2: Time for US multinational enterprises to act

Large U.S. multinationals can take steps now to assess the potential impact of the global top-up corporate tax system that appears on the verge of being implemented.

May 2, 2023

Proposed regs. provide rules for repatriation of intangible property

The regulations would terminate the continued application of the Sec. 367(d) annual inclusion in certain cases when intangible property is repatriated to the United States after previously being transferred to a foreign corporation.

May 1, 2023

US estate tax: Not just for US citizens

The application of U.S. estate tax laws to a non–U.S. citizen depends on domicile, situs of assets, and application of a treaty.

May 1, 2023

Nonwillful FBAR penalties apply per report, not per account

Nonwillful FBAR penalties apply on a per-report basis.

March 1, 2023

Corporate AMT: Unanswered questions about its foreign tax credit

Key issues related to the corporate AMT FTC are unsettled and could have a significant effect on a taxpayer’s corporate AMT liability.

February 28, 2023

Supreme Court holds FBAR penalty is imposed per report, not per account

The Supreme Court held that the $10,000 maximum penalty for the nonwillful failure to file a compliant report applies on a per-report, not a per-account, basis.

January 24, 2023