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In Rev. Rul. 2013-14, the IRS concluded, under three specific fact patterns, that the Fideicomiso or Mexican Land Trust arrangement ("MLT") was not a trust under Reg. [section]301.7701-4(a) and the [...]

U.S. corporations often decide to restructure their first-tier foreign subsidiaries into a single chain of ownership. In many instances, the transaction will be structured to qualify as a nonrecognition transaction [...]

Under Code Sec. 951(a)(1)(A)(i), a U.S. Shareholder (as defined in Code Sec. 951(b)) (2) of a controlled foreign corporation (CFC) (3) generally must include in gross income its pro rata [...]

Code Sec. 6501(c)(8) is especially important for taxpayers because it provides an exception to the normal three-year statute of limitations period for assessment by the IRS under Code Sec. 6501(a) [...]

On May 14, 2010, the Internal Revenue Service (IRS) issued Notice 2010-41 ("2010 Notice"), (2) announcing its intent to promulgate regulations that, under certain circumstances, will classify an otherwise domestic [...]

The Internal Revenue Service (IRS) has been providing administrative relief for taxpayers relating to certain "check-the-box" ("CTB") elections over the last couple of years. For instance, the IRS issued Rev. [...]

In LTR 201001009, (1) the IRS provided certain favorable Code Sec. (2) 355 rulings relating to a distribution by a wholly owned controlled foreign corporation (CFC), as defined in Code [...]

In AM 2008-006 (the "AM"), the IRS addressed the issue of who is required to file Form 926 when a partnership makes a transfer described in Code Sec. 367(a) and [...]

Foreign corporations and nonresident alien individuals (NRAs) frequently invest in the United States via the stock of domestic corporations. When they make such an investment, in addition to considering the [...]

A consolidated group can use a dual consolidated loss to offset the income of a domestic affiliate if it agrees to later claim the loss as income if certain events occur. The IRS has proposed regulations concerning what constitutes these events. The dual consolidated loss rules and proposed regulations are reviewed.

The tax consequences of a transfer of assets by a domestic corporation to a foreign corporation in order to establish a foreign operation or to realign a group of corporations are discussed. Topics include gain recognition rules, active trade or business exceptions, stock transfers, and transfers of intangibles.

The authors outline international provisions that domestic corporate shareholders should consider when seeking to restructure or dispose of a controlled foreign corporation. Topics include transfers of assets and liability to a foreign corporation in exchange for voting stock, triangular C reorganizations, and sales of assets to an unrelated purchaser.

The author explains how sections 367(b) and (e) of the Internal Revenue Code apply to liquidations of foreign corporations into domestic corporations, domestic corporations into foreign corporations, and foreign subsidiary liquidations into foreign parent corporations.

Issues related to final Treasury Dept and IRS regulations under IRC section 367(b) are examined, focusing on the implications for foreign corporation restructuring. Topics include underlying policies regarding section 367(b), rules and definitions, inbound liquidations and inbound asset reorganizations, foreign-to-foreign reorganizations and transactions, relationship between sections 367(b) and 355, and procedural requirements.

Significant clarifications regarding the applicability of the deemed asset sale election to S corporations and their shareholders, as well as the elimination of some major ambiguities, provide planning flexibility for taxpayers and their advisers. Nevertheless, the veto power given to non-selling S shareholders may prove to be quite a hurdle in some circumstances.

In Notice 2005-90, the IRS and Treasury provided an exception to Sec. 901(1)(1)'s general rule that denies a foreign tax credit (FTC) for withholding taxes imposed on an item of [...]

The Ninth Circuit, affirming the Tax Court, held earlier this year that when a corporation transferred appreciated property to a limited partnership and then distributed the partnership interests to its [...]

In a recently published letter ruling, the IRS appears to have adopted the cash purchase model of proposed regulations under Sec. 1032 in determining whether a partnership recognizes gain when [...]

The article focuses on the scope of the notices issued by the U.S. Internal Revenue Service (IRS) which provide guidance concerning the subpart F substantial assistance rule related to controlled foreign corporations (CFCs). The Notice 2007-13 explains that the substantial assistance rule pertains to a category of foreign base company services income. It enumerates the amendments to the rule stated in the notice. The Notice 2007-9 includes a rule on instances when CFCs have to be related.