International Tax Blog

5 New Tax Charts

Today we added 5 new situational charts to andrewmitchel.com (listed in topical order). View these charts and hundreds of other free charts at andrewmitchel.com (listed in alpha-numeric order). Grecian Magnesite Mining (Foreign Partner's Gain on Sale of U.S. Partnership Interest Not Effectively Connected Income) Rev. Rul. 2017-9, Situation 1 (351 Exchange (South) Followed By Spin-Off (North)) Rev. Rul. 2017-9, Situation 2 (Gain Recognized On South Transaction Due Boot Received Not Being Distributed) Reg. 1.987-2(c)(10), Ex.... Read more →

15 New Tax Charts

Today we added 15 new situational charts to andrewmitchel.com dealing with a variety of topics. Am. Metallurgical Coal Co. v. Commr. T.C. Memo 2016-139: Transfer Was For Equity And Not For Debt; Post Transfer Payments Were Dividends In Re DeCoro USA Ltd U.S. Bankruptcy Court, M.D.N.C., Case No. 09-10846C-11G: Inbound Furniture Sales: Sales Comm. Model vs. Distributor Model Revenue Ruling 67-202: Contribution & Liquidation Was An Asset Reorganization & Section 269 Did Not Apply Revenue... Read more →

New Videos November 2016

Over the last month we have published videos on our YouTube channel Andrew Mitchel Tax discussing several of our situational charts, linked to below. Rev. Rul. 2007-42, Situation 1, Spin-Off - 33.33% Interest in Partnership Rev. Rul. 2007-42, Situation 2, Failed Spin-Off - 20% Interest in Partnership Notice 2009-7, Subpart F Income Partnership Blocker You can view the situational charts and associated videos, on AndrewMitchel.com. Read more →

New Videos - July 2016

Over the last month we have published videos on our YouTube channel Andrew Mitchel Tax discussing several of our situational charts, linked to below. Rev. Rul. 86-138, Separate Statement of Items for Tiered Partnerships Rev. Rul. 87-96, Intercompany Dividend of Foreign Subsidiary Triggers Deferred 311(b) and 1248 Gains Rev. Rul. 88-25, Domestication is an F Reorganization Rev. Rul. 89-46, Ownership Attribution in Consolidated Group for 351 Exchange Rev. Rul. 89-101, 355 Spin-Off To Reduce Foreign... Read more →

McLaulin – Failed Spin-Off (Situational Chart)

In McLaulin v. Commr., 276 F.3d 1269 (11th Cir. 2001), a parent corporation acquired control of a subsidiary corporation within the 5 year window specified in Code §355(b)(2)(D), by virtue of the subsidiary corporation's redemption of the stock of another shareholder. The other shareholder’s interest in the subsidiary before the redemption exceeded 20%. Gain was recognized on the redemption and the active business requirement of Code §355(a)(1)(C) was not met. Below is a chart of... Read more →

Charts of Examples in §355 Regulations: Continuity of Interest

Below are four new situational charts of examples found in Treas. Reg. §1.355-2(c)(2). The examples apply the continuity of interest requirement of Code §355 to four different situations. Images of the charts are shown below and links to PDFs of the charts are also available: Treas. Reg. §1.355-2(c)(2) Example 1, Treas. Reg. §1.355-2(c)(2) Example 2, Treas. Reg. §1.355-2(c)(2) Example 3, Treas. Reg. §1.355-2(c)(2) Example 4. We will shortly add these charts to andrewmitchel.com, where you... Read more →

International PLRs for the 52nd week of 2013

Last week the IRS published the following Private Letter Ruling relating to international taxation. PLR 201352007 - Code §355 spin-offs and reorganizations involving U.S. and foreign corporations. Code §368(a)(1)(D). As described earlier, this post may exclude PLRs dealing with typical international related elections. Read more →

International PLRs for the 50th week of 2013

Last Friday the IRS published the following Private Letter Rulings relating to international taxation. PLR 201350002, PLR 201350003 - Late entity classification elections for foreign entities to be treated as disregarded entities. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201350006 - Application of Code §382 limitation rules to a foreign parent's U.S. subidiaries after spin-off transactions. PLR 201350008, PLR 201350009, PLR 201350010, PLR 201350026, PLR 201350027, PLR 201350028, PLR 201350029, PLR 201350030, PLR 201350031 - "No... Read more →

International PLRs for the 41st week of 2013

Last week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201341004 - Code §355 spin-offs and reorganizations involving U.S. and foreign corporations. Code §368(a)(1)(D). PLR 201341007 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201341013 - Code §355 spin-offs and reorganizations involving U.S. and foreign corporations. Code §368(a)(1)(D). PLR 201341024 - Late entity classification election for... Read more →

International PLRs for the 39th week of 2013

Today the IRS published the following Private Letter Ruling relating to international taxation. PLR 201339001 - Code §355 spin-off and reorganizations of domestic and controlled foreign corporations. Read more →

Situational Chart of Rev. Rul. 70-434 - Spin-Off & "B" Reorganization

Below is a chart of Rev. Rul. 70-434 in which the I.R.S. held that a stock-for-stock exchange qualified as a "B" reorganization even though it occurred after a spin-off. The chart can be viewed as a PDF file here: Rev. Rul. 70-434 Read more →

International PLRs of the 34th week of 2013

For the 34th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201334007, PLR201334034 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election. Form 8621. Treas. Reg. §1.1295-3(f). PLR 201334009 - Code §355 spin-offs involving U.S. and foreign corporations that are directly or indirectly owned by a foreign parent company. Code §368(a)(1)(D). PLR 201334010 - Late Canadian registered retirement savings plan... Read more →

International PLRs of the 33rd week of 2013

For the 33rd week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201333004 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election. Form 8621. Treas. Reg. §1.1295-3(f). PLR 201333007 - Code §355 spin-off and reorganizations of controlled foreign corporations. CCA 201333013 - Admissibility of foreign-based records when offered into evidence by a third party. Code §982. Read more →

International PLRs of the 30th week of 2013

For the 30th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201330002 - Code §355 spin-off and reorganizations of foreign and domestic corporations owned by a U.S. parent corporation. Code §368(a)(1)(D). PLR 201330006 - Controlled foreign corporation's ("CFC's") distributive share of income from a foreign partnership is not includable in foreign base company income. Code §954. PLR 201330009 - Late entity classification election... Read more →

International PLRs of the 28th week of 2013

For the 28th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201328003 - Multiple cash transfers disregarded as a circular flow of cash (cash contribution by Foreign Parent into Newco, followed by Newco cash purchase of Oldco Subsidiaries, followed by Oldco distribution of cash to Foreign Parent). Transaction treated as though Oldco distributed shares of Subsidiaries to Foreign Parent and Foreign Parent then contributed Subsidiaries into Newco.... Read more →

International PLRs of the 15th week of 2013

For the 15th week of 2013, the IRS published the following Private Letter Ruling relating to international taxation. PLR 201315016 - Code §355 spin-off and reorganizations of controlled foreign corporations. Code §368(a)(1)(D). Read more →

International PLRs of the 14th week of 2013

For the 14th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201314001 - Code §355 spin-offs involving U.S. and foreign corporations that are directly or indirectly owned by a foreign parent company. Code §368(a)(1)(D). PLR 201314002 - A real estate investment trust’s (REIT’s) deemed inclusions as Subpart F Income under Code §951 and passive foreign investment company (“PFIC”) inclusions under Code §1293 are considered qualifying income under... Read more →

International PLRs of the 12th week of 2013

We have fallen months behind in publishing our weekly summary of private letter rulings with international considerations. We are in the process of getting caught up. Over the next several weeks we plan to publish posts of the missing weeks. For the 12th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201312017 – Code §355 spin-off and reorganizations of controlled foreign corporations. Code... Read more →

International PLRs of the 46th week of 2012

This week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201246006 - Late entity classification election for foreign entities to be treated as partnerships. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201246014 -Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201246015 -Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832.... Read more →

International PLRs of the 44th week of 2012

Last week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201244001 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201244003 - Late passive foreign investment company ("PFIC") mark-to-market election. Form 8621. Treas. Reg. §1.1296-1(h). PLR 201244006 - Code §355 spin-offs involving foreign corporations with foreign parent company. PLR 201244008 - Code §355 spin-off and reorganizations of... Read more →

International PLRs of the 38th, 39th & 40th weeks of 2012

Several weeks ago the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201238005 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23. PLR 201239003 - Code §368(a) reorganizations involving foreign subsidiaries. PLR 201239005 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23. PLR 201240017 - Code §355 spin-offs involving foreign corporations with foreign parent company.... Read more →

International PLR of the 33rd week of 2012

Last week the IRS published the following Private Letter Ruling relating to international taxation for the 33rd week of 2012. PLR 201233016 - Spin-off and reorganizations of controlled foreign corporations. Read more →

International PLRs of the 32nd week of 2012

Recently the IRS published the following Private Letter Rulings relating to international taxation for the 32nd week of 2012. PLR 201232010 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201232014 - Spin-off, including whether gain is recognized under Code §367(a) as part of a reorganization. PLR 201232025 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc.... Read more →

International PLRs of the 29th week of 2012

Last week the IRS published the following Private Letter Rulings relating to international taxation for the 29th week of 2012. PLR 201229002 - Spin-off by a controlled foreign corporation followed by reorganizations. PLR 201229006 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201229009 - Late relief for a foreign entity treated as a partnership to make a Code §754 election. Read more →

International PLRs of the 28th week of 2012

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,... Read more →