Source: http://intltax.typepad.com/intltax_blog/situational-charts/
Timestamp: 2016-08-29 21:33:04
Document Index: 365417448

Matched Legal Cases: ['§6038', '§6511', '§901', '§6511', '§721', '§1', '§704', '§6038', '§482', '§4', '§1', '§1297', '§355', '§355', '§936', '§367', '§1', '§901', '§901', '§901', '§358', '§482', '§482', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§355', '§1', '§1', '§1', '§1', '§1', '§1']

International Tax Blog: Charts - Situational Charts International Tax Blog
Over the last month we have published videos on our YouTube channel Andrew Mitchel Tax discussing several of our situational charts, linked to below. Rev. Rul. 86-138, Separate Statement of Items for Tiered Partnerships Rev. Rul. 87-96, Intercompany Dividend of Foreign Subsidiary Triggers Deferred 311(b) and 1248 Gains Rev. Rul. 88-25, Domestication is an F Reorganization Rev. Rul. 89-46, Ownership Attribution in Consolidated Group for 351 Exchange Rev. Rul. 89-101, 355 Spin-Off To Reduce Foreign...
Over the last month we have published videos discussing several of our situational charts along with IRS Form W-8BEN, linked to below. Rev. Rul. 54-105 - Individual Purchase & Sale of Prop. in Foreign Currency Rev. Rul. 70-373 - Deemed Paid Credits After Lower Tier Liq'n Rev. Rul. 72-354 - Sale of Stock to Qualify as a B Reorganization Rev. Rul. 72-197 - Foreign Taxes Paid By Reverse Hybrid Entity IRS Form W-8BEN Rev. Rul....
Over the last month we have published videos discussing several of our situational charts, linked to below. B Reorganization Rev. Rul. 56-613 - Failed B Reorg - Indirect Control Rev. Rul. 70-253 - Unreimbursed Partnership Expenses Rev. Rul. 70-305 - Subsidiary Purch. & Sale of Parent Stock Rev. Rul. 59-296 - Upstream Merger of Insolvent Subsidiary Rev. Rul. 69-93 - Real Estate Deposit Taxable at Closing Rev. Rul. 71-141 - Sec. 902 Deemed Paid Credit...
Form 5472 is used to provide information required under Code §§6038A and 6038C when reportable transactions occur during the tax year of a reporting corporation with a foreign or domestic related party. A reporting corporation is either a U.S. corporation that is 25% foreign owned or a foreign corporation that is engaged in a U.S. trade or business. The reportable transactions are essentially related party transactions. Consequently, Form 5472 is an important tool in IRS...
Code §6511(d)(3)(A) provides that if the claim for credit or refund relates to an overpayment attributable to any taxes paid or accrued to any foreign country for which credit is allowed under Code §901, in lieu of the 3-year period of limitation prescribed in Code §6511(a), the period is 10 years “from the date prescribed by law for filing the return for the year in which such taxes were actually paid or accrued.” (the language...
The I.R.S. recently published Notice 2015-54, which announced that it intends to issue regulations under Code §721(c) to ensure that, when a U.S. person transfers certain property to a partnership that has foreign partners related to the transferor, income or gain attributable to the property will be taken into account by the transferor either immediately or periodically. Treas. Reg. §1.704-3(a)(1) provides that the purpose of Code §704(c) is to prevent the shifting of tax consequences...
Form 5472 is used to provide information required under Code §§6038A and 6038C when reportable transactions occur during the tax year of a reporting corporation with a foreign or domestic related party. The reportable transactions are essentially related party transactions. Consequently, Form 5472 is an important tool in IRS audits relating to transfer pricing and Code §482. See IRM §4.61.3.4.1. Treas. Reg. §1.6038A-1(m) provides 7 examples that apply the Form 5472 reporting requirement rules. We...
A passive foreign investment company (“PFIC”) is generally defined as any foreign corporation if 75 percent or more of its gross income for the taxable year consists of passive income, or 50 percent or more of its assets consists of assets that produce, or are held for the production of, passive income. Code §1297(c) contains a look-through rule that provides that if a foreign corporation owns, directly or indirectly, at least 25 percent of the...
Last week the IRS released Rev. Rul. 2015-09 and Rev. Rul. 2015-10. In Rev. Rul. 2015-09, (1) a domestic corporation transferred all of the stock of its foreign operating subsidiary to its foreign holding company subsidiary in exchange for additional stock, (2) the foreign operating subsidiary and three foreign subsidiaries of the foreign holding company transferred substantially all of their assets to a newly-formed foreign subsidiary of the foreign holding company in exchange for stock...
In McLaulin v. Commr., 276 F.3d 1269 (11th Cir. 2001), a parent corporation acquired control of a subsidiary corporation within the 5 year window specified in Code §355(b)(2)(D), by virtue of the subsidiary corporation's redemption of the stock of another shareholder. The other shareholder’s interest in the subsidiary before the redemption exceeded 20%. Gain was recognized on the redemption and the active business requirement of Code §355(a)(1)(C) was not met. Below is a chart of...
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...
Last week the IRS released Notice 2014-44, announcing that regulations will be issued under Code §901(m). Code §901(m)(1) provides that, in the case of a covered asset acquisition ("CAA"), the disqualified portion of any foreign income tax determined with respect to the income or gain attributable to relevant foreign assets ("RFAs") will not be taken into account in determining the foreign tax credit allowed under Code §901(a), and in the case of foreign income tax...
Last week the IRS released Chief Counsel Advice 201420017. The IRS addressed the issue of a foreign partnership loaning money to one of its partners, a controlled foreign coporation ("CFC"), and the CFC partner loaning the amount to its U.S. Parent. U.S. Parent indirectly wholly owned CFC Partner 1 and CFC Partners. DE 1, a disregarded entity of FPS, a foreign partnership, made a loan of cash to CFC Partner 1. CFC Partner 1 then...
Last week the IRS published PLR 201411006, where a foreign parent operated two different consolidated groups in the U.S. and proposed a series of transactions which would combine the two consolidated groups into one. The IRS applied the allocation of basis rules under Code §358 to the transaction. One of the first transactions involved making entity classification ("check-the-box") elections for the foreign holding corporations to treat them as disregarded entities, which would trigger a deemed...
Below is a chart of Central de Gas de Chihuahua v. Commissioner, 102 T.C. 515 (1994). The Tax Court held that the Code §482 adjustment made by the IRS was appropriate where one Mexican corporation, Central Gas, allowed a related Mexican corporation the rent-free use of tractors which were used in the U.S. The Code §482 adjustment created deemed rental payments to Central Gas which were U.S. source income. The chart can be viewed as...
Below are five new situational charts of examples found in Treas. Reg. §1.1361-5(a)(4). The examples apply the QSub requirements to five different situations and illustrate when a QSub election may be terminated. Images of the charts are shown below and links to PDFs of the charts are also available: Treas. Reg. §1.1361-5(a)(4) Example 1, Treas. Reg. §1.1361-5(a)(4) Example 2, Treas. Reg. §1.1361-5(a)(4) Example 3, Treas. Reg. §1.1361-5(a)(4) Example 4, Treas. Reg. §1.1361-5(a)(4) Example 5. We...
Below are four new situational charts of examples found in Treas. Reg. §1.355-2(c)(2). The examples apply the continuity of interest requirement of Code §355 to four different situations. Images of the charts are shown below and links to PDFs of the charts are also available: Treas. Reg. §1.355-2(c)(2) Example 1, Treas. Reg. §1.355-2(c)(2) Example 2, Treas. Reg. §1.355-2(c)(2) Example 3, Treas. Reg. §1.355-2(c)(2) Example 4. We will shortly add these charts to andrewmitchel.com, where you...
As discussed in a post last week, the IRS has released Treas. Reg. §1.1298-1T, temporary regulations regarding the annual filing requirement (Form 8621) for Passive Foreign Investment Companies (“PFICs”). The regulations include four examples which apply the filing requirement rules and exceptions. We have created charts for each of the examples. Images of the charts are shown below and links to PDFs of the charts are also shown: Treas. Reg. §1.1298-1T(g) Example 1, Treas. Reg....
Below is a chart of Rev. Rul. 63-252, which was cited in an I.R.S. determination letter that was released recently. In the revenue ruling, the I.R.S. provided five different examples where contributions were made to a U.S. charity and ultimately sent to a foreign charity. The I.R.S. held that in three of the scenarios, the donor was not allowed to deduct the contribution. In two of the scenarios, the donor was allowed to deduct the...
Below is a chart of Rev. Rul. 71-336 in which the I.R.S. held that a corporation was merely a conduit in a prearranged plan of exchange of stock between shareholders. As a result, the transaction was taxable. The chart can be viewed as a PDF file here: Rev. Rul. 71-336