To amend the Internal Revenue Code of 1986 to make the look-thru rule for related controlled foreign corporations permanent.

Bill: 116-hr-5240
Sponsor: full_name: Rep. Kind, Ron [D-WI-3]
Introduced: 2019-11-21
Policy area: Taxation
Subjects: Foreign and international corporations

Income tax deferral

Taxation of foreign income

U.S. and foreign investments
Latest action: action_date: 2019-11-21
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2019-11-21
action_desc: Introduced in House
text: <p>This bill amends the Internal Revenue Code to make permanent the tax rule exempting dividends, interest, rents, and royalties received or accrued from certain controlled foreign corporations by a related entity from treatment as foreign holding company income (thus permitting tax deferral of such income).</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 5240 IN THE HOUSE OF REPRESENTATIVES November 21, 2019 Mr. Kind (for himself, Mr. Holding , Ms. Moore , Mrs. Walorski , Mr. Suozzi , Mr. LaHood , Mr. Higgins of New York , Mr. Ferguson , Mr. Larson of Connecticut , Mr. Estes , Ms. Sewell of Alabama , Mr. Schneider , and Mr. Smith of Missouri ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to make the look-thru rule for related controlled foreign corporations permanent.

1. Look-thru rule for related controlled foreign corporations made permanent (a) In general Section 954(c)(6) of the Internal Revenue Code of 1986 is amended by striking subparagraph (C). (b) Effective date The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2019, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.