International Tax Blog

Over 50 New Situational Charts – Code §7874 Regulation Examples

Earlier this year, the IRS released T.D. 9761, which included final and temporary regulations under Code §7874. The regulations contain new rules addressing inversions and certain post-inversion tax avoidance transactions. Today we have released over 50 situational charts that illustrate all of the examples embedded in the Code §7874 regulations. Specifically, the situational charts include the examples found in the following regulation sections: Treas. Reg. §1.7874–1 Disregard of affiliate-owned stock Treas. Reg. §1.7874–2 & –2T... Read more →

Charts of Examples in Notice 2014-52

UPDATE - 11/1/16: Notice 2014-52 was made obsolete by T.D. 9761. See our blog post Over 50 New Situational Charts – Code §7874 Regulation Examples. On September 22, 2014, the IRS released Notice 2014-52. The notice announced that regulations will be issued under Code §§304(b)(5)(B), 367, 956(e), 7701(l), and 7874 to target corporate inversions. In summary, the notice aims to: Prevent inverted companies from accessing a foreign subsidiary’s earnings while deferring U.S. tax through the... Read more →

Why U.S. Companies Invert Video

Today we published a new video discussing Why U.S. Companies Invert. The video is embedded below: Read more →

Chart of PLR 201432002: No Inversion as a Result of an F Reorganization & an IPO

Last week the IRS released PLR 201432002, where it applied the anti-inversion rules of Code §7874. The IRS ruled that a newly formed foreign corporation was not a surrogate foreign corporation (i.e., there was no inversion) under Code §7874 where it acquired a U.S. corporation from a foreign corporation in a Code §368(a)(1)(F) reorganization that was followed by a private placement and an IPO. The shares of the new foreign corporation were excluded from the... Read more →

International PLRs of Note for the 32nd week of 2014

Last week the IRS published the following Private Letter Ruling and Chief Counsel Advice relating to international taxation. PLR 201432002 - A newly formed foreign corporation was not a surrogate foreign corporation (i.e., there was no inversion) under Code §7874 where it acquired a U.S. corporation from a foreign corporation in a Code §368(a)(1)(F) reorganization that was followed by a private placement and an IPO. The shares of the new foreign corporation were excluded from... Read more →

International PLRs of the 42nd week of 2012

Several weeks ago the IRS published the following Private Letter Rulings relating to international taxation. PLR 201242001 - Late IC DISC election. Form 4876-A. Code §992(b)(1)(A). PLR 201242004 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23. PLR 201242007 - A U.S. LLC contributed cash to newly formed foreign corporation. The foreign corporation, immediately thereafter and pursuant to a preexisting binding commitment, used the contributed cash to purchase certain... Read more →