Several weeks ago the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation for the 28th week of 2012. There were no international related Private Letter Rulings for the 27th week of 2012.
PLR 201228013 - Taxpayer is a resident alien and will become a nonresident alien, and then again a resident alien. Taxpayer’s unused net operating losses that were generated while he was taxed as a U.S. resident, and that would have been allocated and apportioned, in accordance with the rules in Treas. Reg. § 1.861-8(e)(8), to the gross income of the U.S. business had he been taxed on such income as a nonresident alien for such years, may be used to the extent provided in Treas. Reg. § 1.861-8 to offset gross income effectively connected with the conduct of the U.S. business while he is a nonresident alien. Taxpayer may carry over any unused net operating losses from the U.S. business allocated and apportioned to income effectively connected with the conduct of the U.S. business while he is taxed as a nonresident alien, and may apply such losses against gross income from the U.S. business after he reacquires U.S. resident status. Taxpayer may carry over any unused net operating losses from the U.S. business generated while he was taxed as a U.S. resident, if still available, against his gross income after he reacquires U.S. resident status.
PLR 201228020 - Gain from the disposition of carbon credits allocated to a controlled foreign corporation were not foreign personal holding company income.
PLR 201228021 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election. Form 8621. Treas. Reg. §1.1295-3(f).
PLR 201228030 - Spin-off and reorganizations of controlled foreign corporations.
PLR 201228031 - Late entity classification election for foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).
PLR 201228032 - Late entity classification election for foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).
PLR 201228033 - Multi-tiered spin-offs, including spin-off by a controlled foreign corporation.
CCA 201228035 - Code §267(a)(3) applies to the patronage dividends paid by a cooperative to its related foreign patrons, so the cooperative will not be able to deduct the patronage dividends under Code §1382 until the amounts are includible in the foreign patrons’ gross income, subject to the exceptions and special rules set forth in § 267(a)(3)(B) and Treas. Reg. §1.267(a)-3(c).