International Tax Blog

AM 2021-002 – Relevance & Check-the-Box Elections

Yesterday the IRS published AM 2021-002. This AM concludes that a foreign eligible entity is classified pursuant to Treas. Reg. §301.7701-3(b)(2) (“the default classification provision”) during the period in which its classification is not relevant. The AM states that this determination is made when the classification of the entity first becomes relevant, but the classification applies during the non-relevant period. The AM also concludes that the 60-month limitation rule does not apply if the election... Read more →

Increases in Private Letter Ruling Fees for 2017

Earlier this month, the IRS released Rev. Proc. 2017-1. Among other things, the first revenue procedure of the year includes the new user fees for seeking relief under Treas. Reg. §301.9100 ("9100 relief"). A taxpayer might seek 9100 relief in order to make a late election, such as a late entity classification election (also known as a “check-the-box election”) on Form 8832. The new IRS fees are effective for requests received after February 1, 2017.... Read more →

Dover - Check-the-Box and Sale Video

Today we published a video discussing the Tax Court case Dover v. Commr., 122 T.C. 19 (2004). The case dealt with check-the-box election planning to avoid Subpart F Income. Read more →

International PLRs for the 48th week of 2013

Today the IRS published the following Private Letter Rulings relating to international taxation. PLR 201348002 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201348003 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201348004 - Late entity classification election for a foreign entity to be treated as a disregarded... Read more →

International PLRs for the 47th week of 2013

Today the IRS published the following Private Letter Rulings relating to international taxation. PLR 201347002 - Ordinary (and not capital) loss allowed on liquidation of worthless controlled foreign corporation. The fees earned by a foreign subsidiary did not constitute interest for purposes of Code §165(g)(3)(B). Rev. Rul. 88-65. PLR 201347006, PLR 201347018 - Late IC DISC elections. Form 4876-A, Code §992(b)(1)(A). PLR 201347007 - Late entity classification election for a foreign entity to be treated... Read more →

International PLRs for the 45th week of 2013

Today the IRS published the following Private Letter Rulings relating to international taxation. PLR 201345002, PLR201345007, PLR201345008, PLR201345009, PLR201345010, PLR201345011, PLR201345012, PLR201345013, PLR201345014, PLR201345015, PLR201345016, PLR 201345022 - Late entity classification elections for foreign entities to be treated as partnerships. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201345031 - Denial of Code §501(c)(3) exemption for domestic organization acting as a "foreign feeder" charity. Read more →

International PLRs for the 42nd week of 2013

This week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201342002 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201342004 - Allocation of loss carryovers and tax credit carryovers after integration of a foreign parent's two consolidated groups. Code §1502. 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 38th week of 2013

Last week the IRS published the following Private Letter Rulings relating to international taxation. PLR201338011 - Extension of time granted to file Code §338(g) elections for qualified stock purchases of two controlled foreign corporations by a U.S. corporation. PLR201338014, PLR201338027, PLR201338036, PLR201338038 - Late Canadian registered retirement savings plan ("RRSP") deferral elections. Form 8891. Rev. Proc. 2002-23. PLR201338030, PLR201338032 - Late entity classification elections for foreign entities to be treated as associations taxable as corporations.... Read more →

International PLRs for the 37th week of 2013

Today the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201337005, PLR 201337006, PLR 201337008, PLR 201337009 - Late Canadian registered retirement savings plan ("RRSP") deferral elections, including a locked-in retirement account (LIRA), or Locked-in RRSP. Form 8891. Rev. Proc. 2002-23. PLR 201337011 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c). CCA 201337015 - IRS... Read more →

International PLRs for the 35th week of 2013

Last week, the 35th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201335002 - Late IC DISC election. Form 4876-A, Code §992(b)(1)(A). PLR 201335003 & PLR 201335004 - Late entity classification elections for a foreign entities to be treated as disregarded entities. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201335008 - Taxpayer was permitted to change from the fair market value method to the tax book value method... 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 31st week of 2013

For the 31st week of 2013, the IRS published the following Private Letter Ruling relating to international taxation. PLR 201331001 - Consent for a foreign entity to be treated as an association less than 60 months after its previous classification change . Form 8832. Treas. Reg. §301.7701-3(c). 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 22nd week of 2013

For the 22nd week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201322007: Request to revoke a Code §83(b) election was granted because the request to revoke was within 30 days of receiving the property. Rev. Proc. 2006-31. PLR 201322009 - Application of certain look-through rules for purposes of determining whether a foreign corporation is a passive foreign investment company ("PFIC") within the meaning of section 1297. PLR... Read more →

International PLRs of the 21st week of 2013

For the 21st week of 2013, the IRS published the following Private Letter Rulings relating to international taxation. PLR 201321001, PLR 201321004, PLR 201321013, PLR 201321014, PLR 201321015 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201321007 - Applicability of Code §§361 and 897 to a foreign corporation holding United States Real Property Interests ("USRPIs") when such corporation reincoroporates in the... 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 & CCA of the 11th week of 2013

Last week the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation. PLR 201311001 - Consent was granted to change methods for measuring and timing and identifying employee stock options, restricted stock units, and performance-based restricted stock units pursuant to Treas. Reg. §1.482-7(d)(3)(iii)(C) for purposes of determining the amount the taxpayer must include in its cost sharing arrangement as intangible development costs. PLR 201311004 - The generation-skipping transfer tax... Read more →

International PLRs of the 8th week of 2013

Last week the IRS published the following Private Letter Rulings relating to international taxation. Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23. PLR 201308003 PLR 201308006 Late entity classification election for a foreign entity to be treated as a corporation. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201308012 PLR 201308013 PLR 201308014 PLR 201308023 - Permission granted for early re-election of 911 exclusion. Form 2555. Treas. Reg. §1.911-7(b). Read more →

PLRs of the 5th week of 2013

Yesterday the IRS published the following Private Letter Rulings relating to international taxation. PLR 201305002 - Late IC DISC election. Form 4876-A. Code §992(b)(1)(A). PLR 201305006 - Contractual arrangement treated as a separate foreign business entity for which a check-the-box election could be made to treat the arrangement as a foreign corporation for U.S. tax purposes. Treas. Reg. §301.7701-2, -5. Form 8832. In the PLR, the Taxpayer intended to enter into a joint venture with... Read more →

International PLRs for the 2nd week of 2013

Last week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201302010 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election. Form 8621. Treas. Reg. §1.1295-3(f). PLR 2012011 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election. Form 8621. Treas. Reg. §1.1295-3(f). PLR 2012012 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c). PLR... Read more →

International PLRs of the 1st week of 2013

Yesterday the IRS published the following Private Letter Rulings relating to international taxation. PLR 201301005: Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201201006: Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c). Read more →

International PLRs for the 50th week of 2012

Last week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201250001 - A nonresident alien (“NRA”) who was an income beneficiary of trusts created by her father proposed to release her income interests to the remainder beneficiaries (her descendants). The NRA’s income interests in the trusts constituted intangible property (within the meaning of Code §2501(a)(2)), not tangible or real property. Consequently, the transfer was not subject to U.S. gift tax.... Read more →

International PLRs of the 49th week of 2012

Last week the IRS published the following Private Letter Rulings relating to international taxation. PLR 201249008 Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c). PLR 201249014 Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election. Form 8621. Treas. Reg. §1.1295-3(f). Read more →