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 →

New Videos - June 2016

Over the last month we have published videos on our YouTube channel Andrew Mitchel Tax discussing several of our situational charts along with IRS Form 5471 Schedule O and Form 5472, linked to below. Rev. Rul. 84-2 - Section 332 Liquidation With Creation of Nominee Entity Rev. Rul. 84-68 - Parent Payment of Bonuses to Subsidiary Employees Rev. Rul. 84-111, Situation 1 - Assets Over Conversion of Partnership to Corporation Form 5472, Info. Return of... Read more →

New Videos - April 2016

Over the last month we have published videos discussing several of our situational charts along with IRS Form 8938, linked to below. Rev. Rul. 72-420 - Conversion of NV to BV Rev. Rul. 73-2 - Section 304/351 Overlap Rev. Rul. 75-521 - Stock Purchase & Liquidation - 332 Rev. Rul. 76-192 - CFC Created to Avoid Section 956 Rev. Rul. 75-383 - Inbound D Reorganization Form 8938, Statement of Specified Foreign Financial Assets Rev. Rul.... Read more →

Chart of PLR With Outbound 332 Liquidation

Last year we blogged about PLR 201348011, where a U.S. corporation was not required to recognize gain on the distribution of its assets in liquidation to its foreign parent, except with respect to gain attributable to intangibles described in Code §936(h)(3)(B). The distributed property will continue to be used in a U.S. trade or business for ten years after the liquidation. Code §367(e)(2) and Treas. Reg. §1.367(e)-2(b)(2)(i). We have created a situational chart of PLR... 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 →

Chart of Rev. Rul. 90-76 - Foreign Corporations: Liquidating Distributions of USRPIs

Below is a chart of Rev. Rul. 90-76 in which the I.R.S. addressed where gain must be recognized when foreign corporations liquidate, distributing U.S. Real Property Interests ("USRPIs"). The chart can be viewed as a PDF file here: Rev. Rul. 90-76 Read more →

Situational Chart of Rev. Rul. 58-422 - Merger an "F" Reorg & Two 332 Liquidations

Below is a chart of Rev. Rul. 58-422 in which the I.R.S. held that a merger of a parent corporation and its two subsidiaries into a new corporation was an "F" reorganization and two section 332 liquidations. The chart can be viewed as a PDF file here: Rev. Rul. 58-422 Read more →