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I. Introduction Congress overhauled the U.S. international tax system in late 2017, an important aspect of which was the mandatory repatriation of certain amounts from foreign corporations and the resulting [...]

Let us begin by reviewing select passages from seminal Due Process and Commerce Clause U.S. Supreme Court state tax decisions: "It long has been established that the income of a [...]

This case study has been adapted from Checkpoint Tax Planning and Advisory Guide's closely held C corporations topic. Published by Thomson Reuters, Carrollton, Texas, 2022 (800-431-9025; tax.thomsonreuters.com). Qualified dividends are [...]

The heart of the territorial system of taxation introduced in the Tax Cuts and Jobs Act ("TCJA") is Code Sec. 245A, which provides a dividends received deduction for certain amounts [...]

The term 'passive foreign investment company' (PFIC) suggests a sophisticated, highly specialized non-U.S. investment medium that the majority of U.S. persons probably would not select as an investment. In reality, [...]

On 20 June 2018 with the filling of the bill of law n[degrees] 7318 ("ATAD Bill"), the Luxembourg implementation law of European Council Directive (EU) 2016/1164-the so-called Anti-Tax Avoidance Directive [...]

I. Introduction Foreign corporations with limited activities in the United States, especially those with minimal international business experience, sometimes are unaware of their duty to file annual Forms 1120-F (U.S. [...]

The recently enacted U.S. anti-avoidance tax rules targeting hybrid mismatches undoubtedly cast a very wide net. The application of these rules poses substantial challenges for global businesses and international tax [...]

The Biden administration has re-ignited negotiations on global corporate taxation in the past few weeks, with proposals that have fanned growing expectations of a deal being reached before the end [...]

I. Introduction On July 13, 2017, the Tax Court issued its opinion in Grecian Magnesite Mining, Industrial & Shipping Co., SA, holding that the gain that a foreign corporation recognized [...]

This item explores the risks to taxpayers and return preparers alike for certain delinquent or substantially incomplete international information returns that provide information to the 1RS to satisfy various reporting [...]

In recent years, the legislative, judicial, and executive branches have all attempted to clarify the meaning of "intangible property" under Sec. 367, which has guided U.S. multinational businesses seeking to [...]

I. Introduction Various international organizations claimed, and the IRS recently confirmed, that we may have a problem on our hands. Namely, as a result of gaps in U.S. tax law [...]

Twenty-five states require a taxpayer member of a unitary business group to compute its taxable income on a combined basis. A key issue when designing a combined reporting system is [...]

I. Introduction The U.S. government, fed up with international tax evasion, has taken significant steps in recent years to curb the problem. Among the most notorious of these steps was [...]

Hale E. Sheppard examines the "substantially complete" defense to Form 5471 penalties. I. Introduction After suffering a near miss, hearing "close but no cigar" provides little consolation. It provides even [...]

Sec. 884(a), enacted as part of the Tax Reform Act of 1986, RL. 99-514, imposes a branch profits tax on the effectively connected income (ECI) of a U.S. branch of [...]

Although the term "earnings and profits" (E&P) is common in the realm of international tax, it is all too often misconceived, misapplied, or even ignored. The importance of E&P in [...]

On Sept. 14, 2015, the Treasury Department and the IRS released proposed regulations under Sec. 367 (REG-139483-13) modifying the application of Secs. 367(a) and (d) to certain outbound transfers of [...]

The maximum tax rate on qualified dividends received by an individual, trust, or estate is 23.8% (base rate of 20% plus 3.8% net investment income tax for some high-income taxpayers). [...]

Introduction In the November--December 2013 edition of this journal, the authors published an article discussing LTR 201322009 (the "2013 LTR"). (1) In the 2013 LTR, the IRS addressed, for the [...]

Introduction Under Code Sec. 355, a corporation generally recognizes no gain or loss on distributing stock of a corporation that it controls to its shareholders if the distributing corporation and [...]

Domestic disregarded entities wholly owned by foreign persons are now subject to new reporting obligations. The Treasury Department and the 1RS recently issued final regulations (T.D. 9796) that treat such [...]

The Experts: Maria Todorova and Eric J. Coffill Even though state taxation has moved away from the worldwide unitary method, with Alaska being the only state currently requiring use of [...]

TaxClinic PRACTICAL ADVICE ON CURRENT ISSUES Foreign companies investing in the United States often rely on U.S. income tax treaties to reduce or eliminate the 30% U.S. withholding tax imposed [...]

Foreign entities not engaged in a U.S. trade or business, not deemed to have a permanent establishment, or that have claimed a federal treaty exemption may still be subject to [...]