Gain on the disposition of controlled foreign corporation stock, in excess of the amount of gain required to be recognized as foreign income to offset a taxpayer’s overall foreign loss under Sec. 904(f)(3), is not exempt from tax.
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International Tax
Increased U.S. transfer-pricing enforcement: What’s at stake?
Multinational enterprises can expect an IRS encouraged by a string of court victories in recent years to more closely scrutinize transfer pricing and perhaps assert hefty penalties.
Short-term relief for foreign tax credit woes
The IRS has eased some requirements of final regulations published in 2022, by temporarily removing so-called attribution requirements and the specific-cost-recovery requirement.
Supreme Court hears arguments in challenge to Sec. 965 transition tax
At stake is up to $340 billion in tax revenue in case where couple is challenging tax that they say increased their liability by about $15,000 in 2017.
Foreign corporations, controlled groups, and the gross receipts test
Major tax law changes in 2017 increased reliance on the gross receipts test and, in turn, the controlled group rules, making these sections a focal point for tax practitioners.
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.
Rethinking international penalty administration
This item explores the Farhy decision and its impact on international penalties.
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.
FBAR reporting requirement is not unconstitutional
FBAR requirement does not violate Fourth, Fifth, Ninth, or Tenth amendments to the Constitution.
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.
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.
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.
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.
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.
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.
IRS cannot assess Sec. 6038(b) penalties
The IRS does not have statutory authority to assess Sec. 6038(b) penalties.
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.
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.
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.
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.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
