International Tax Blog

New IRS Practice Unit: Concepts of GILTI

Yesterday the IRS published a new practice unit titled “Concepts of Global Intangible Low-Taxed Income Under IRC 951A.” In addition, last week the IRS published a practice until titled “Partner’s Outside Basis.” Both of these practice units have been added to our Practice Units By Topic page. Read more →

Multiple new situational charts published

We recently added 12 new situational tax charts to AndrewMitchel.com (charts listed in topical order and charts listed in alpha-numeric order). We have over 1200 charts for FREE on our website. The recently published charts include: Rev. Rul. 70-409 (Liquidating Distribution of Shareholders' Notes Was a Distribution of Money) Reg. 1.881-5(h), Example (US VI Corp Was Not Less Than 25% Owned By Foreign Persons) Reg. 1.904-4(f)(4)(i), Example 1 (Determination of Foreign Branches and Foreign Branch... Read more →

U.S. Partnerships Owning CFCs

It has been over a year since the final GILTI regulations were published. The GILTI rules for domestic partnerships in the final regulations were dramatically different than in the proposed regulations. In general, a domestic partnership that owns a CFC does not have a GILTI inclusion amount. However, a partner in the domestic partnership may have a GILTI inclusion amount if the partner is a U.S. shareholder of the CFC (typically meaning that the partner... Read more →

Video - GILTI for a CFC With & Without Debt

Today we uploaded a video discussing 2 Examples of the GILTI: Example 1: CFC Without Debt Example 2: CFC With Debt Read more →

12 New Tax Charts

We recently added 12 new situational charts to andrewmitchel.com (listed in topical order). View these charts and over a thousand other free charts at andrewmitchel.com (listed in alpha-numeric order). Bass (Swiss Corporation Was Respected As a Separate Entity) Rev. Rul. 79-371 (Gift of Installment Note Triggered Gain) Rev. Rul. 80-58, Situation 1 (Rescission of Contract Within Same Taxable Year) Rev. Rul. 80-58, Situation 2 (Rescission of Contract in Following Taxable Year) Rev. Rul. 80-164 (Cash... Read more →

Video – GILTI in a Minute

Today we uploaded a video that provides a very condensed version (1 minute) of the GILTI calculations. Read more →

GILTI Regulations Preamble: Is a 100 Word Sentence Too Long?

Today the IRS published the proposed GILTI regulations. The preamble to the regulations includes the following sentence: In addition, a requirement that a partnership’s basis in specified tangible property be measured on the last day of a CFC partner’s taxable year could be burdensome for partnerships that have one or more CFC partners with taxable years that do not coincide with the partnership’s taxable year and, in those cases, would have the effect of decoupling... Read more →

Update to Video: Global Intangible Low-taxed Income (“GILTI”)

We have updated our YouTube video on GILTI, which we originally discussed here. We had previously believed that GILTI would not apply to a controlled foreign corporation's income that was subject to a foreign tax rate of at least 18.9% (90% of the new U.S. corporate tax rate of 21%). That was incorrect. The foreign tax rate is only relevant to a very narrow exception to GILTI. If a controlled foreign corporation had income that... Read more →

Andrew Mitchel Speaking on "GILTI" at IFA regional meeting

At the next meeting of the Luncheon Series of the International Fiscal Association, USA Branch, Westchester County, NY/Connecticut Region Andrew Mitchel will be the key speaker. The meeting will be held on Thursday February 8th. During the meeting, there will be an in-depth discussion of the new Global Intangible Low-Tax Income ("GILTI") regime imposed by the Tax Cuts and Jobs Act. The meeting is at the Hyatt Regency (in the Pemberwick room) in Greenwich, CT... Read more →

TCJA Explanatory Video: Global Intangible Low-taxed Income (“GILTI”)

Global intangible low-taxed income (“GILTI”) is a new type of income inclusion under the Tax Cuts and Jobs Act. Under the new GILTI rules, a U.S. shareholder of a controlled foreign corporation (“CFC”) must include in gross income for a taxable year its GILTI income in a manner generally similar to inclusions of subpart F income. GILTI means, with respect to any U.S. shareholder for the shareholder’s taxable year, the excess (if any) of the... Read more →