Source: http://intltax.typepad.com/intltax_blog/check-the-box/
Timestamp: 2014-07-29 02:33:26
Document Index: 748538195

Matched Legal Cases: ['§301', '§382', '§953', '§831', '§162', '§1', '§501', '§501', '§856', '§6511', '§368', '§368', '§368', '§351', '§304', '§331', '§368', '§338', '§338', '§6501', '§61', '§301', '§301', '§ 301', '§ 301', '§ 301', '§ 301', '§ 301', '§ 301', '§ 301', '§ 301', '§ 1362', '§ 301', '§ 301']

International Tax Blog: Check-the-Box Elections
43 posts categorized "Check-the-Box Elections"
International PLRs for the 50th week of 2013
Last Friday the IRS published the following Private Letter Rulings relating to international taxation.
PLR 201350002, PLR 201350003 - Late entity classification elections for foreign entities to be treated as disregarded entities. Form 8832. Treas. Reg. §301.7701-3(c).
PLR 201350006 - Application of Code §382 limitation rules to a foreign parent's U.S. subidiaries after spin-off transactions. PLR 201350008, PLR 201350009, PLR 201350010, PLR 201350026, PLR 201350027, PLR 201350028, PLR 201350029, PLR 201350030, PLR 201350031 - "No rule decisions" issued where foreign corporations had made elections under Code §953(d) to be treated as a domestic corporations and sought rulings that they would be treated as insurance companies under Code §831 and that premiums received by the companies were deductible as "insurance premiums" under Code §162. The companies did not provide enough information for rulings to be issued.
PLR 201350011, PLR 201350012, PLR 201350013, PLR 201350014, PLR 201350015, PLR 201350016, PLR 201350017, PLR 201350018, PLR 201350019, PLR 201350020, PLR 201350021, PLR 201350022, PLR 201350023, PLR 201350024, PLR 201350025 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") elections. Form 8621. Treas. Reg. §1.1295-3(f).
PLR 201350041 - Revocation of Code §501(c)(3) exemption for a domestic organization that sent funds overseas to its founder's family and failed to exercise expenditure responsibility over the funds. Posted on December 16, 2013 in 355 Spin-Offs, 953(d), Check-the-Box Elections, PFICs, PLRs / CCAs | Permalink
Posted on December 08, 2013 in Check-the-Box Elections, Form 8832, Videos | Permalink
Posted on November 29, 2013 in Check-the-Box Elections, Form 8832, Liquidations, PLRs / CCAs | Permalink
Posted on November 22, 2013 in Check-the-Box Elections, Foreign Earned Income Exclusion, Form 2555, Form 8832, PLRs / CCAs | Permalink
PLR 201345031 - Denial of Code §501(c)(3) exemption for domestic organization acting as a "foreign feeder" charity. Posted on November 15, 2013 in Check-the-Box Elections, Foreign Earned Income Exclusion, Form 2555, Form 8832, PFICs, PLRs / CCAs | Permalink
PLR 201341032 - Restructuring of U.S. real estate investment trust ("REIT") that holds properties in a foreign country. Code §856(c). Posted on October 31, 2013 in 355 Spin-Offs, Check-the-Box Elections, Corporate Reorgs, Foreign Trusts, Form 8832, PLRs / CCAs, REIT | Permalink
Posted on September 23, 2013 in 338 Elections, Canada, Check-the-Box Elections, Form 8832, PLRs / CCAs | Permalink
Posted on September 13, 2013 in Canada, Check-the-Box Elections, Form 8832, Form 8891, PLRs / CCAs | Permalink
Posted on September 05, 2013 in 355 Spin-Offs, Canada, Check-the-Box Elections, Circular flow of cash, Form 8832, PFICs, PLRs / CCAs | Permalink
Posted on September 05, 2013 in Check-the-Box Elections, Form 8832, PLRs / CCAs | Permalink
CCA 201330031 -Determined that a refund claim was not timely under Code §6511(d)(3)(A) where a taxpayer decided to deduct rather than credit foreign taxes paid. Posted on September 05, 2013 in 355 Spin-Offs, Canada, Check-the-Box Elections, Foreign Tax Credits, Form 8621, Form 8832, PFICs, PLRs / CCAs | Permalink
Posted on September 05, 2013 in 355 Spin-Offs, Check-the-Box Elections, Circular flow of cash, Corporate Reorgs, Form 8832, PLRs / CCAs | Permalink
Posted on August 26, 2013 in Check-the-Box Elections, Form 8621, Form 8832, PFICs, PLRs / CCAs | Permalink
PLR 201321018 - U.S. corporation's reorganization as a foreign corporation triggered an indirect disposition of its intellectual property. Code §368(a)(1)(F). Posted on August 25, 2013 in 351 Exchanges, Check-the-Box Elections, Foreign Tax Credits, Form 8832, PFICs, PLRs / CCAs | Permalink
Posted on August 19, 2013 in 355 Spin-Offs, Canada, Check-the-Box Elections, Form 8621, Form 8832, Form 8891, PFICs, PLRs / CCAs, REIT | Permalink
Posted on March 22, 2013 in Check-the-Box Elections, Cost Sharing Arrangement, Form 8832, PFICs, PLRs / CCAs, Source of Income, U.S. Withholding Taxes | Permalink
Posted on February 26, 2013 in Canada, Check-the-Box Elections, Foreign Earned Income Exclusion, Form 2555, Form 8832, Form 8891, PLRs / CCAs | Permalink
Posted on February 01, 2013 in Check-the-Box Elections, Form 8832, IC DISC, PLRs / CCAs | Permalink
Posted on January 19, 2013 in Check-the-Box Elections, Form 8621, Form 8832, PFICs, PLRs / CCAs | Permalink
Posted on January 04, 2013 in Check-the-Box Elections, Form 8832, PLRs / CCAs | Permalink
International PLRs of the 52nd Week of 2012
Yesterday the IRS published the following Private Letter Rulings relating to international taxation. PLR 201252002: Two Code §368(a)(1)(A) reorganizations, three Code §368(a)(1)(D) reorganizations, and two Code §351 exchanges involving foreign corporations.PLR 201252008: Multiple cross-chain sales of foreign corporations to which Code §304 applied and a Code §331 liquidation of a foreign corporation resulting from a check-the-box election in which loss was recognized.PLR 201252011: Amalgamation of a foreign newco and a foreign target was treated as a Code §368(a)(1)(F) reorganization followed by a Code §338 qualified stock purchase for which a Code §338(g) election could be made.
Posted on December 28, 2012 in 338 Elections, 351 Exchanges, Check-the-Box Elections, Corporate Reorgs, PLRs / CCAs | Permalink
Posted on December 20, 2012 in Check-the-Box Elections, Corporate Reorgs, Form 8832, Gifts, PLRs / CCAs | Permalink
Posted on December 13, 2012 in Check-the-Box Elections, Form 8621, Form 8832, PFICs, PLRs / CCAs | Permalink
Posted on November 30, 2012 in 1504(d), Check-the-Box Elections, Corporate Reorgs, Form 8621, Form 8832, PFICs, PLRs / CCAs | Permalink
CCA 201247015: The term “gross income” (for purposes of the 25% omission from gross income in computing the 6 year statute of limitations under Code §6501(e)) has the same meaning as the general definition under Code §61(a). “Gross income” for this purpose includes the entire net gain on the disposition of passive foreign investment company (“PFIC”) stock and not only the portion taxed as ordinary income and included in taxable income. Posted on November 24, 2012 in Check-the-Box Elections, Form 8832, PFICs, PLRs / CCAs, Treaties | Permalink
Posted on September 08, 2012 in Check-the-Box Elections, Form 8832, PLRs / CCAs | Permalink
PLR 201234013 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).PLR 201234015 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c). Posted on August 25, 2012 in Check-the-Box Elections, Form 8832, PLRs / CCAs | Permalink
Posted on August 25, 2012 in 355 Spin-Offs, Canada, Check-the-Box Elections, Corporate Reorgs, Form 8832, Form 8891, PLRs / CCAs | Permalink
Posted on August 24, 2012 in Check-the-Box Elections, Foreign Earned Income Exclusion, Foreign Pensions, Form 2555, Form 8832, PLRs / CCAs, Treaties | Permalink
Posted on August 24, 2012 in Canada, Check-the-Box Elections, Form 8832, Form 8891, PLRs / CCAs | Permalink
Posted on July 21, 2012 in 355 Spin-Offs, Check-the-Box Elections, Corporate Reorgs, Form 8832, PLRs / CCAs | Permalink
Posted on July 21, 2012 in 355 Spin-Offs, Check-the-Box Elections, Corporate Reorgs, Form 8832, Other, PFICs, PLRs / CCAs, Residency, Subpart F Income & 956 | Permalink
Posted on July 21, 2012 in Canada, Check-the-Box Elections, Form 8832, Form 8891, PLRs / CCAs, Subpart F Income & 956 | Permalink
Posted on June 16, 2012 in Canada, Check-the-Box Elections, Form 8832, Form 8891, IC DISC, PLRs / CCAs | Permalink
Posted on June 12, 2012 in Check-the-Box Elections, Form 8832, Other, PLRs / CCAs | Permalink
Posted on June 12, 2012 in Canada, Check-the-Box Elections, Form 8832, Form 8891, Other, PLRs / CCAs | Permalink
Posted on May 14, 2012 in 953(d), Canada, Check-the-Box Elections, Form 8832, Form 8891, PLRs / CCAs, Treaties | Permalink
Posted on April 23, 2012 in 338 Elections, 355 Spin-Offs, Check-the-Box Elections, Form 8832, PLRs / CCAs | Permalink
Posted on April 01, 2012 in Check-the-Box Elections, Form 8832, Form 8891, PLRs / CCAs, Treaties | Permalink
Posted on February 12, 2012 in 338 Elections, Check-the-Box Elections, Form 5471, Form 8832, PLRs / CCAs, Subpart F Income & 956 | Permalink
a corporation if all of its owners have limited liability, a partnership if it has two or more owners and at least one owner does not have limited liability, and a disregarded entity if it has a single owner that does not have limited liability.
Posted on June 25, 2010 in Check-the-Box Elections | Permalink
I.R.S. Extends Due Date for Late Check-the-Box Elections
Today the I.R.S. issued Revenue Procedure 2009-41 which allows certain late entity classification (“check-the-box”) elections to be filed retroactively for a period of 3 years and 75 days.
Entity Classification Elections Generally
Treas. Reg. § 301.7701-3(a) provides in part that a business entity that is not a per se corporation under Treas. Reg. § 301.7701-2(b)(1), (3), (4), (5), (6), (7), or (8) (i.e., an eligible entity) can elect its classification for federal tax purposes as provided in Treas. Reg. § 301.7701-3. An eligible entity with at least two members can elect to be classified as either a corporation or a partnership, and an eligible entity with a single owner can elect to be classified as a corporation or as a disregarded entity.
Treas. Reg. § 301.7701-3(b) provides a default classification for an eligible entity that does not file an entity classification election. Thus, an entity classification election is necessary only when an eligible entity chooses to be classified initially as other than its default classification or when an eligible entity chooses to change its classification.
Entity classification elections are made by filing Form 8832, Entity Classification Election. Treas. Reg. § 301.7701-3(c)(1)(iii) provides that an entity classification election will be effective on the date specified by the entity on Form 8832 or on the date filed if no such date is specified on the election form. The effective date specified on Form 8832 cannot be more than 75 days prior to the date on which the election is filed and cannot be more than 12 months after the date on which the election is filed. 9100 Relief
Under Treas. Reg. § 301.9100-1(c) the I.R.S. may grant a reasonable extension of time to make certain elections. Treas. Reg. § 301.9100-3 provides that the I.R.S. will grant an extension of time when the taxpayer provides the evidence to establish to the satisfaction of the I.R.S. that the taxpayer has acted reasonably and in good faith and the grant of relief will not prejudice the interests of the government.
Revenue Procedure 2002-59
Revenue Procedure 2002-59 provides guidance for entities newly formed under local law to request relief for a late initial classification election filed by the due date for the first federal tax return (excluding extensions) of the entity’s desired classification for the year of the entity’s formation.
Extended to CHANGES in Classification
Revenue Procedure 2009-41 supersedes Revenue Procedure 2002-59. Significantly, Revenue Procedure 2009-41 extends late entity classification relief to changes in classification elections. Under Revenue Procedure 2002-59 relief was only available for initial classification elections. This extension is important because it eliminates many questions related to late entity classification elections, for instance where “off-the-shelf” entities are used.
No Retroactive Election for Per Se Corporations Until Conversion
One must remember, however, that no entity classification elections can be made for per se corporations. Consequently, even if an entity converts from being a per se corporation to being an eligible entity, the effective date of the entity classification election cannot be prior to the date of the conversion.
An eligible entity may qualify for alternative relief under Treas. Reg. § 301.7701-3(c)(1)(v)(C), which treats an entity as having made a classification election to be treated as a corporation when it timely elects to be an S corporation under Code § 1362(a)(1). Also, see Revenue Procedure 2004-48 and Revenue Procedure 2007-62 for special rules applicable to late S corporation elections and late entity classification elections.
An entity that does not satisfy the requirements for relief under Revenue Procedure 2009-41 may request relief by applying for a letter ruling. However, the I.R.S. user fees (not to mention advisor fees) for private letter rulings can be significant.
Importance for Foreign Entities
This new relief is very helpful for many taxpayers that form entities outside the United States without first obtaining thorough U.S. tax advice. Often it is beneficial to make entity classification elections for foreign entities, but taxpayers may not be immediately made aware of the benefits of such an election. Importantly, however, certain requirements must be met to obtain relief under Revenue Procedure 2009-41 and not all taxpayers may qualify for such relief.
Posted on September 03, 2009 in Check-the-Box Elections | Permalink
Bulgarian Aktsionerno Druzhestvo Added To Per Se Corporation List
On March 20, 2008, the Treasury Department published Treasury Decision 9388. The T.D. updated the per se corporation list to include Bulgarian aktsionerno druzhestvos. The per se corporation list already includes a Societas Europaea or SE. See Treas. Reg. § 301.7701-2(b)(8).
With respect to many issues, EU regulations defer to the laws of the country in which the SE has its registered office. An SE must have a registered office in one of the Member States of the European Economic Area, which includes Norway, Iceland, Liechtenstein, and every country in the European Union. With the entry of Bulgaria into the European Union on January 1, 2007, an SE can now have its registered office in Bulgaria.
Bulgaria's SE is called an aktsionerno druzhestvo. The IRS and the Treasury Department stated in Notice 2007-10 that Treas. Reg. § 301.7701-2(b)(8) would be modified to include the aktsionerno druzhestvo on the per se corporation list. The temporary regulations in T.D. 9388 make that modification.
Posted on May 04, 2008 in Check-the-Box Elections | Permalink