International Tax Blog

16 New Charts Published

Today we published 16 new situational tax charts to AndrewMitchel.com. We have over 1300 charts for FREE on our website. The recently published charts include: TBL Licensing LLC (Gain Recognized on the Transfer of Intangible Property in an Oubound F Reorganization) Rev. Rul. 67-12 (Business Expenses Paid In a Year After the Termination of the Business Were Deductible) Reg. 1.861-9 and -9T (Interest Expense Allocation Example With An Individual Owning Partnerships) Cheat Sheet: 1.861-9 and... Read more →

13,000 Regulation Examples

I often use Cornell’s Legal Information Institute (“LII”) to access tax regulations. I noticed that the HTML on the LII website included regulation examples in

tags with a class of “example”. I thought it would be interesting to extract the text of all of the examples in the regulations and perform some analysis on those regulation examples. Below I describe how I located over 13,000 examples in the tax regulations. My first step was... Read more →

I started my business in the later half of 2004. In early 2005, I had created a website and registered it with Google. However, when I performed Google searches (even for my specific name) there were no results. I felt like I didn’t exist on the Internet. Google published information on how it ranked websites and how to improve your search rankings. The most important factor was “inbound links” from quality websites. If other legitimate... Read more →

I compiled some data on recent visitors to AndrewMitchel.com and Tax-Charts.com. The data is based on the past 12 months (May 2021 to April 2022). Charts on AndrewMitchel.com The top 20 charts visited on AndrewMitchel.com were as follows: Rev. Rul. 99-6, Situation 1 (Partnership to Disregarded Entity - Member Purchase) Rev. Rul. 99-6, Situation 2 (Partnership to Disregarded Entity - Third Party Purchase) Rev. Rul. 99-5, Situation 1 (Disregarded Entity to Partnership - Sale) Rev.... Read more →

Today we published a new situational chart to AndrewMitchel.com discussing certain 861-865 Income Classifications as well as a corresponding video discussing this chart to our YouTube channel. The links are below: Andrew Mitchel.com: 861-865 Income Classification Chart YouTube AndrewMitchelTax: 861-865 Income Classification Video Click here for over 1300 FREE charts listed in topical order and charts listed in alpha-numeric order. Read more →

Today we published 8 new situational tax charts to AndrewMitchel.com. We have over 1300 charts for FREE on our website. The recently published charts include: Martin Ice Cream (Ice Cream Distribution Rights Were Owned By A Shareholder) Reg. 1.1298-4, Example (Possible PFICs Owning 25%-Owned Domestic Corps) Rev. Rul. 73-478 (Sale of S Corp Stock to an Alien BFR of PR Terminates S Election) Rev. Rul. 78-38 (Charitable Contribution Via Credit Card: Deductible in Year Charge... Read more →

Today we published 14 new situational tax charts to AndrewMitchel.com. We have over 1300 charts for FREE on our website. The recently published charts include: Rev. Rul. 58-1 (Bargain Rentals To Shareholders Results in Constructive Dividends) Rev. Rul. 68-79 (Gain Flowing to Partner Was Long-Term, Even Though Holding Period For Partnership Interest Was Less Than 6 Months) Rev. Rul. 72-232 (Book Royalties to an NRA Were Not U.S. Source Income) Reg. 1.672(f)-1(b), Example (Foreign Person... Read more →

Today we published 13 new situational tax charts to AndrewMitchel.com (charts listed in topical order and charts listed in alpha-numeric order). We have over 1300 charts for FREE on our website. The recently published charts include: Rev. Rul. 68-289 (Merger of Partnerships: Deemed Transactions (Assets-Over Form)) Rev. Rul. 76-364 (Stock Redemption: Lost Control Where Acting In Concert With One Other Shareholder) Rev. Rul. 80-240 (Shareholder Treated As AgentTo Borrow Funds For Corp) Rev. Rul. 85-198... Read more →

Today we published 130 new charts on andrewmitchel.com. The U.S. Treasury Department Technical Explanations for 26 treaties include 5 examples to illustrate the “derived in connection with” requirement under the active trade or business test regarding the limitation on benefits (“LOB”) provisions. The 130 charts are the 5 examples for each of the 26 treaties. Derived In Connection With An item of income is derived in connection with a trade or business if the income-producing... Read more →

For my charts, I typically show flow-thru entities as rectangles with small triangles in the lower right corner. I think of the triangle as an up-side-down funnel. The funnel allows the income to flow from the entity upwards to its owner. For entities that are true partnerships, I typically show them as triangles to reflect their flow-thru nature. S corporations are generally flow-thru entities. To continue the funnel theme, I show S corporations as trapezoids,... Read more →

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 →

Today we published 7 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: Reg. 1.1291-1(b)(8)(iv), Example 1 (Indirect Ownership of a PFIC Partly Thru a U.S. Corp) Prop. Reg. 1.1291-1(b)(8)(iv)(B), Example 2 ("Top-Down" Approach For Ownership of a PFIC Thru Foreign Partnerships) Prop. Reg. 1.1297-1(b)(2), Example (Consolidated Group Dividends Not Excluded From... Read more →

Today we published 5 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. 2008-39 (Upper-Tier Partnership Sec. 212 Expenses Must be Separately Stated) Reg. 1.267(a)-3(b)(4), Example 1 (Interest Expense of Accrual Taxpayer Not Deductible Until Paid) Prop. Reg. 1.864-6(c)(3)(i), Example 1 (NRA With a US Tax Home Selling Foreign-Produced Inventory... Read more →

We recently added 11 new charts to andrewmitchel.com (listed in topical order and listed in alpha-numeric order). We now have more than 1,200 charts available. The recently added charts include: Reg. 1.960-2(b)(5), Example (Deemed Paid Foreign Income Taxes: Subpart F Income Inclusion) Reg. 1.960-2(c)(7)(i), Example 1 (Deemed Paid Foreign Income Taxes: GILTI Inclusion) Reg. 1.960-2(c)(7)(ii), Example 2 (Deemed Paid Foreign Income Taxes: GILTI Inclusion, CFC Owned Thru P'ship) Reg. 1.960-3(e)(1), Example 1 (Foreign Income Taxes... Read more →

On August 24, 2019, the Treasury Department and the IRS issued proposed regulations regarding the classification of cloud transactions for purposes of the international provisions of the Code. The proposed regulations also modify the rules for classifying transactions involving computer programs, including by applying the rules to transfers of digital content. We have created charts of certain examples included in the proposed regulations. View these charts and over a thousand other free charts at andrewmitchel.com... Read more →

Earlier this week the Tax Court concluded that the earnings and profits (E&P) of certain upper-tier CFCs was increased by the amount of Subpart F Income inclusions and Code §956 inclusions (Code §951(a) inclusions) that flowed up from lower-tier CFCs through a U.S. partnership. Below is a chart of the entity structure in the Eaton case. Read more →

A taxpayer cannot rent property to him or herself. This is similar to the concept that a taxpayer cannot pay themselves a salary. For example, if a taxpayer has a sole proprietorship and he or she reports the income and expenses of that business on Schedule C of Form 1040, the taxpayer is not able to deduct salary expense on the Schedule C for “wages” paid to him or herself. This makes sense because a... Read more →

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 →

We have created charts of the 13 of the examples included in Treas. Reg. §§1.958-1 and -2. Treas. Reg. §1.958-1 contains 5 examples demonstrating attribution through direct and indirect ownership. These regulations provide a limited form of attribution primarily for use in determining the amount taxable to a U.S. shareholder under Code §951(a) (Subpart F Income). Treas. Reg. §1.958-2 contains 8 examples demonstrating attribution through constructive ownership. These regulations provide that the attribution rules of... Read more →

Last week the IRS issued proposed regulations under the Section 965 Transition Tax. We have created charts of the 8 examples included in Prop. Treas. Reg. §1.965-1(g). The examples include: Example 1: Special Non-Attribution Rule For P'ships in Defining Specified Foreign Corporations Example 2: Attribution Rule For P'ships in Defining Specified Foreign Corporations Example 3: Determination of Accumulated Post-1986 Deferred Foreign Income (All E&P was PTI & DFI was zero) Example 4: Determination of Status... Read more →

We recently added 8 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). Buck (Pre-1954 Code: Grantor Trust Due to Retained Sprinkle Power) Carson (Grantor Held Power to Sprinkle Income Among Beneficiaries) Rev. Rul. 67-70 (Transfer of an Installment Note to a Grantor Trust Was Not a Disposition) Rev. Rul. 67-167 (Transfer of an Installment Note to a Nongrantor Trust... Read more →

We have 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). Rev. Rul. 2007-49, Situation 1 (Vested Stock to Nonvested Stock with No Exchange) Rev. Rul. 2007-49, Situation 2 (Vested Stock to Nonvested Stock In Tax-Free Reorg Exchange) Reg. 1.987-2(c)(10), Example 10 (Section 987: Contribution of Assets to Corporation) Reg. 1.987-2(c)(10), Example 11 (Section 987 QBU: Circular Transfers)... Read more →

We have 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). Rev. Rul. 73-157, Situation 1 (Installment Sale Method Not Available When Sold Thru Son As Conduit) Rev. Rul. 73-157, Situation 2 (Installment Sale Method Not Available When Sold Thru Corp As Conduit) Reg. 1.987-2(c)(10), Example 4 (Section 987: Sale of Property by a Section 987 QBU) Reg.... Read more →

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 →

Last week, the Tax Court released an important opinion in Grecian Magnesite Mining, Industrial & Shipping Co., SA v. Commissioner, 149 T.C. No. 3, where the court declined to follow Rev. Rul. 91-32. For more than 25 years the IRS has maintained that gain on a foreign partner’s disposition of an interest in a partnership that conducts business in the U.S. is subject to U.S. tax. To arrive at this conclusion, the IRS applied the... Read more →

Internet Birthday --- June 26, 2005

I started my business in the later half of 2004. In early 2005, I had created a website and registered it with Google. However, when I performed Google searches (even for my specific name) there were no results. I felt like I didn’t exist on the Internet. Google published information on how it ranked websites and how to improve your search rankings. The most important factor was “inbound links” from quality websites. If other legitimate... Read more →

Recent Web Traffic Data

I compiled some data on recent visitors to AndrewMitchel.com and Tax-Charts.com. The data is based on the past 12 months (May 2021 to April 2022). Charts on AndrewMitchel.com The top 20 charts visited on AndrewMitchel.com were as follows: Rev. Rul. 99-6, Situation 1 (Partnership to Disregarded Entity - Member Purchase) Rev. Rul. 99-6, Situation 2 (Partnership to Disregarded Entity - Third Party Purchase) Rev. Rul. 99-5, Situation 1 (Disregarded Entity to Partnership - Sale) Rev.... Read more →

New situational chart and video on Income Classification

Today we published a new situational chart to AndrewMitchel.com discussing certain 861-865 Income Classifications as well as a corresponding video discussing this chart to our YouTube channel. The links are below: Andrew Mitchel.com: 861-865 Income Classification Chart YouTube AndrewMitchelTax: 861-865 Income Classification Video Click here for over 1300 FREE charts listed in topical order and charts listed in alpha-numeric order. Read more →

8 New Charts Published

Today we published 8 new situational tax charts to AndrewMitchel.com. We have over 1300 charts for FREE on our website. The recently published charts include: Martin Ice Cream (Ice Cream Distribution Rights Were Owned By A Shareholder) Reg. 1.1298-4, Example (Possible PFICs Owning 25%-Owned Domestic Corps) Rev. Rul. 73-478 (Sale of S Corp Stock to an Alien BFR of PR Terminates S Election) Rev. Rul. 78-38 (Charitable Contribution Via Credit Card: Deductible in Year Charge... Read more →

14 New Charts Published

Today we published 14 new situational tax charts to AndrewMitchel.com. We have over 1300 charts for FREE on our website. The recently published charts include: Rev. Rul. 58-1 (Bargain Rentals To Shareholders Results in Constructive Dividends) Rev. Rul. 68-79 (Gain Flowing to Partner Was Long-Term, Even Though Holding Period For Partnership Interest Was Less Than 6 Months) Rev. Rul. 72-232 (Book Royalties to an NRA Were Not U.S. Source Income) Reg. 1.672(f)-1(b), Example (Foreign Person... Read more →

13 New Charts Published

Today we published 13 new situational tax charts to AndrewMitchel.com (charts listed in topical order and charts listed in alpha-numeric order). We have over 1300 charts for FREE on our website. The recently published charts include: Rev. Rul. 68-289 (Merger of Partnerships: Deemed Transactions (Assets-Over Form)) Rev. Rul. 76-364 (Stock Redemption: Lost Control Where Acting In Concert With One Other Shareholder) Rev. Rul. 80-240 (Shareholder Treated As AgentTo Borrow Funds For Corp) Rev. Rul. 85-198... Read more →

130 New Tax Charts – LOB Active Trade or Business Test – Derived In Connection With

Today we published 130 new charts on andrewmitchel.com. The U.S. Treasury Department Technical Explanations for 26 treaties include 5 examples to illustrate the “derived in connection with” requirement under the active trade or business test regarding the limitation on benefits (“LOB”) provisions. The 130 charts are the 5 examples for each of the 26 treaties. Derived In Connection With An item of income is derived in connection with a trade or business if the income-producing... Read more →

Flow-Thru Symbols: An Up-Side-Down “Funnel” Theme

For my charts, I typically show flow-thru entities as rectangles with small triangles in the lower right corner. I think of the triangle as an up-side-down funnel. The funnel allows the income to flow from the entity upwards to its owner. For entities that are true partnerships, I typically show them as triangles to reflect their flow-thru nature. S corporations are generally flow-thru entities. To continue the funnel theme, I show S corporations as trapezoids,... 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 →

7 New Tax Charts Published

Today we published 7 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: Reg. 1.1291-1(b)(8)(iv), Example 1 (Indirect Ownership of a PFIC Partly Thru a U.S. Corp) Prop. Reg. 1.1291-1(b)(8)(iv)(B), Example 2 ("Top-Down" Approach For Ownership of a PFIC Thru Foreign Partnerships) Prop. Reg. 1.1297-1(b)(2), Example (Consolidated Group Dividends Not Excluded From... Read more →

5 New Tax Charts Published

Today we published 5 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. 2008-39 (Upper-Tier Partnership Sec. 212 Expenses Must be Separately Stated) Reg. 1.267(a)-3(b)(4), Example 1 (Interest Expense of Accrual Taxpayer Not Deductible Until Paid) Prop. Reg. 1.864-6(c)(3)(i), Example 1 (NRA With a US Tax Home Selling Foreign-Produced Inventory... Read more →

11 New Tax Charts

We recently added 11 new charts to andrewmitchel.com (listed in topical order and listed in alpha-numeric order). We now have more than 1,200 charts available. The recently added charts include: Reg. 1.960-2(b)(5), Example (Deemed Paid Foreign Income Taxes: Subpart F Income Inclusion) Reg. 1.960-2(c)(7)(i), Example 1 (Deemed Paid Foreign Income Taxes: GILTI Inclusion) Reg. 1.960-2(c)(7)(ii), Example 2 (Deemed Paid Foreign Income Taxes: GILTI Inclusion, CFC Owned Thru P'ship) Reg. 1.960-3(e)(1), Example 1 (Foreign Income Taxes... Read more →

8 New Charts Of Examples Regarding Classification of Cloud Transactions & Computer Programs

On August 24, 2019, the Treasury Department and the IRS issued proposed regulations regarding the classification of cloud transactions for purposes of the international provisions of the Code. The proposed regulations also modify the rules for classifying transactions involving computer programs, including by applying the rules to transfers of digital content. We have created charts of certain examples included in the proposed regulations. View these charts and over a thousand other free charts at andrewmitchel.com... Read more →

Eaton Corp. v. Commr., 152 T.C. No. 2 (2019)

Earlier this week the Tax Court concluded that the earnings and profits (E&P) of certain upper-tier CFCs was increased by the amount of Subpart F Income inclusions and Code §956 inclusions (Code §951(a) inclusions) that flowed up from lower-tier CFCs through a U.S. partnership. Below is a chart of the entity structure in the Eaton case. Read more →

Rental of Real Estate to Yourself

A taxpayer cannot rent property to him or herself. This is similar to the concept that a taxpayer cannot pay themselves a salary. For example, if a taxpayer has a sole proprietorship and he or she reports the income and expenses of that business on Schedule C of Form 1040, the taxpayer is not able to deduct salary expense on the Schedule C for “wages” paid to him or herself. This makes sense because a... 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 →

13 Charts of Code §958 Regulation Examples

We have created charts of the 13 of the examples included in Treas. Reg. §§1.958-1 and -2. Treas. Reg. §1.958-1 contains 5 examples demonstrating attribution through direct and indirect ownership. These regulations provide a limited form of attribution primarily for use in determining the amount taxable to a U.S. shareholder under Code §951(a) (Subpart F Income). Treas. Reg. §1.958-2 contains 8 examples demonstrating attribution through constructive ownership. These regulations provide that the attribution rules of... Read more →

8 Charts of Sec. 965 Transition Tax Regulation Examples

Last week the IRS issued proposed regulations under the Section 965 Transition Tax. We have created charts of the 8 examples included in Prop. Treas. Reg. §1.965-1(g). The examples include: Example 1: Special Non-Attribution Rule For P'ships in Defining Specified Foreign Corporations Example 2: Attribution Rule For P'ships in Defining Specified Foreign Corporations Example 3: Determination of Accumulated Post-1986 Deferred Foreign Income (All E&P was PTI & DFI was zero) Example 4: Determination of Status... Read more →

8 New Tax Charts

We recently added 8 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). Buck (Pre-1954 Code: Grantor Trust Due to Retained Sprinkle Power) Carson (Grantor Held Power to Sprinkle Income Among Beneficiaries) Rev. Rul. 67-70 (Transfer of an Installment Note to a Grantor Trust Was Not a Disposition) Rev. Rul. 67-167 (Transfer of an Installment Note to a Nongrantor Trust... Read more →

5 New Tax Charts

We have 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). Rev. Rul. 2007-49, Situation 1 (Vested Stock to Nonvested Stock with No Exchange) Rev. Rul. 2007-49, Situation 2 (Vested Stock to Nonvested Stock In Tax-Free Reorg Exchange) Reg. 1.987-2(c)(10), Example 10 (Section 987: Contribution of Assets to Corporation) Reg. 1.987-2(c)(10), Example 11 (Section 987 QBU: Circular Transfers)... Read more →

5 New Tax Charts

We have 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). Rev. Rul. 73-157, Situation 1 (Installment Sale Method Not Available When Sold Thru Son As Conduit) Rev. Rul. 73-157, Situation 2 (Installment Sale Method Not Available When Sold Thru Corp As Conduit) Reg. 1.987-2(c)(10), Example 4 (Section 987: Sale of Property by a Section 987 QBU) Reg.... Read more →

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 →

Tax Court Declines to Follow Rev. Rul. 91-32

Last week, the Tax Court released an important opinion in Grecian Magnesite Mining, Industrial & Shipping Co., SA v. Commissioner, 149 T.C. No. 3, where the court declined to follow Rev. Rul. 91-32. For more than 25 years the IRS has maintained that gain on a foreign partner’s disposition of an interest in a partnership that conducts business in the U.S. is subject to U.S. tax. To arrive at this conclusion, the IRS applied the... Read more →