Andrew Mitchel LLC

International Tax Blog - New and Interesting International Tax Issues


8 New Charts Published

2022-01-20

Tags: 351 Exchanges, 355 Spin-Offs, 933/937 Puerto Rico, 1291 PFICs, 1361 S Corporations, Authority - PLRs / CCAs, Authority - Revenue Rulings, Charts - Situational Charts

5 New Tax Charts

2017-08-10

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. 2 (Section 987: Transfer to a Directly Owned Section 987 QBU)
  • Reg. 1.987-2(c)(10), Ex. 3 (Section 987: Intercompany Sale of Property Between Section 987 QBUs
Tags: 351 Exchanges, 355 Spin-Offs, 987 Branch Transactions, Charts - Situational Charts

15 New Tax Charts

2017-02-06

Today we added 15 new situational charts to andrewmitchel.com dealing with a variety of topics.

  1. Am. Metallurgical Coal Co. v. Commr. T.C. Memo 2016-139:  Transfer Was For Equity And Not For Debt; Post Transfer Payments Were Dividends
  2. In Re DeCoro USA Ltd U.S. Bankruptcy Court, M.D.N.C., Case No. 09-10846C-11G:  Inbound Furniture Sales: Sales Comm. Model vs. Distributor Model
  3. Revenue Ruling 67-202:  Contribution & Liquidation Was An Asset Reorganization & Section 269 Did Not Apply
  4. Revenue Ruling 91-6:  Accumulated Distribution After Domestication of Foreign Trust
  5. Prop. Reg. 1.355-2(d)(4) Example 1:  Sale After Distribution (Device)
  6. Prop. Reg. 1.355-2(d)(4) Example 2:  Disproportionate Division of Nonbusiness Assets (Device)
  7. Prop. Reg. 1.355-2(d)(4) Example 3:  Proportionate Division of Nonbusiness Assets (Nondevice)
  8. Prop. Reg. 1.355-2(d)(4) Example 4:  Disproportionate Division of Nonbusiness Assets (Nondevice)
  9. Prop. Reg. 1.355-2(d)(4) Example 5:  Nonbusiness Asset Percentage (50-Percent-Owned Group)
  10. Prop. Reg. 1.355-2(d)(4) Example 6:  Nonbusiness Asset Percentage: Partnership Interest
  11. Prop. Reg. 1.355-2(d)(4) Example 7:  Nonbusiness Asset Percentage: Borrowing From Partnership
  12. Reg. 1.1001-2(c), Example 1:  Sales Proceeds Include Liabilities Assumed By Purchaser
  13. PLR 9142032:  Gain on Sale of Foreign Partnership Was Attributed to a Foreign Office For 865 Sourcing Rule If 10% Foreign Tax Paid
  14. PLR 200803005:  Inbound F Reorganization With U.S. Branch & USRPIs
  15. PLR 201336012:  Spin-Off of QSub

355_2d_4_1

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 641-684 Trusts, 861 Source of Income, 897 FIRPTA, 1361 S Corporations, Charts - Situational Charts

New Videos November 2016

2016-11-30

Over the last month we have published videos on our YouTube channel Andrew Mitchel Tax discussing several of our situational charts, linked to below.

You can view the situational charts and associated videos, on AndrewMitchel.com.

Tags: 355 Spin-Offs, 951 Subpart F Income, Other - Videos

New Videos - July 2016

2016-07-29

Tags: 355 Spin-Offs, 1248 Sales of CFCs, Authority - Revenue Rulings, Charts - Situational Charts, Other - Videos

McLaulin – Failed Spin-Off (Situational Chart)

2014-12-29

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 the case and a PDF of the case can be found here.

McLaulin

Tags: 355 Spin-Offs, Charts - Situational Charts

Charts of Examples in §355 Regulations: Continuity of Interest

2014-01-24

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:

We will shortly add these charts to AndrewMitchel.com, where you can find hundreds of similar situational charts.

1.355-2(c)(2) ex1

1.355-2(c)(2) ex2

1.355-2(c)(2) ex3

1.355-2(c)(2) ex4

Tags: 355 Spin-Offs, Charts - Situational Charts

International PLRs for the 52nd week of 2013

2013-12-31

Last week the IRS published the following Private Letter Ruling relating to international taxation.

PLR 201352007 - Code §355 spin-offs and reorganizations involving U.S. and foreign corporations.  Code §368(a)(1)(D).

As described earlier, this post may exclude PLRs dealing with typical international related elections.

Tags: 355 Spin-Offs, 368 Corporate Reorgs, Authority - PLRs / CCAs

International PLRs for the 50th week of 2013

2013-12-16

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. 

Tags: 355 Spin-Offs, 953(d) Dom. Election for Fgn. Ins. Co., 1291 PFICs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs

International PLRs for the 41st week of 2013

2013-10-31

Last week the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201341004 - Code §355 spin-offs and reorganizations involving U.S. and foreign corporations.  Code §368(a)(1)(D).

PLR 201341007 - Late entity classification election for a foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201341013 - Code §355 spin-offs and reorganizations involving U.S. and foreign corporations.  Code §368(a)(1)(D).

PLR 201341024 - Late entity classification election for a foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201341031 - U.S. electric utlity company servicing foreign country may deduct under Code §162(a) incentives paid to customers to install renewable energy systems.

PLR 201341032 - Restructuring of U.S. real estate investment trust ("REIT") that holds properties in a foreign country.  Code §856(c). 

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 856 REITs, 6048 Foreign Trusts, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Form 8832

International PLRs for the 39th week of 2013

2013-09-27

Today the IRS published the following Private Letter Ruling relating to international taxation.

PLR 201339001 - Code §355 spin-off and reorganizations of domestic and controlled foreign corporations.

Tags: 355 Spin-Offs, Authority - PLRs / CCAs

Situational Chart of Rev. Rul. 70-434 - Spin-Off & "B" Reorganization

2013-09-11

Below is a chart of Rev. Rul. 70-434 in which the I.R.S. held that a stock-for-stock exchange qualified as a "B" reorganization even though it occurred after a spin-off.

The chart can be viewed as a PDF file here: Rev. Rul. 70-434

70-434

Tags: 355 Spin-Offs, 368 Corporate Reorgs, Authority - Revenue Rulings, Charts - Situational Charts

International PLRs of the 34th week of 2013

2013-09-05

For the 34th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation.

PLR 201334007, PLR201334034 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201334009 - Code §355 spin-offs involving U.S. and foreign corporations that are directly or indirectly owned by a foreign parent company.  Code §368(a)(1)(D).

PLR 201334010 - Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23.

PLR 201334011, PLR201334017, PLR201334020, PLR201334021, PLR201334022, PLR201334023, PLR201334024, PLR201334025 - Late entity classification election for foreign entities to be treated as partnerships. Form 8832. Treas. Reg. §301.7701-3(c).

PLR201334012, PLR201334013, PLR201334014, PLR201334015, PLR201334016, PLR201334018, PLR201334019, PLR201334026, PLR201334027, PLR201334028, PLR201334029 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201334032 - Code §355 spin-offs involving U.S. and foreign corporations.

CCA 201334037 - The I.R.S. concluded that interest was not "paid" where a foreign parent advanced funds to its U.S. subsidiary close in time to the transfer of funds (purportedly as interest payments) from the U.S. subsidiary to the parent.  Circular flow of cash.  Code §267(a)(3).

Tags: 355 Spin-Offs, 1291 PFICs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Country - Canada, Form 8832, Other - Circular flow of cash

International PLRs of the 33rd week of 2013

2013-09-05

For the 33rd week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation.

PLR 201333004 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201333007 - Code §355 spin-off and reorganizations of controlled foreign corporations.

CCA 201333013 - Admissibility of foreign-based records when offered into evidence by a third party.  Code §982.

Tags: 355 Spin-Offs, 1291 PFICs, Authority - PLRs / CCAs, Form 8621

International PLRs of the 30th week of 2013

2013-09-05

For the 30th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation.

PLR 201330002 - Code §355 spin-off and reorganizations of foreign and domestic corporations owned by a U.S. parent corporation.  Code §368(a)(1)(D).

PLR 201330006 - Controlled foreign corporation's ("CFC's") distributive share of income from a foreign partnership is not includable in foreign base company income.  Code §954.

PLR 201330009 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201330013 - Late entity classification election for foreign entity to be treated as an association taxable as a corporation.  Form 8832.  Treas. Reg. §301.7701-3(c).

PLR 201330019 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201330020 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201330021 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201330022 - Code §355 spin-offs involving foreign corporations that are directly or indirectly owned by a foreign parent company.

PLR 201330025 - A Canadian fund's U.S. source dividends and interest will be exempt from U.S. tax pursuant to Article XXI(3) of the U.S.-Canada income tax treaty.  The units of the fund were held exclusively for the benefit of Canadian registered pension plans and Canadian charitable organizations and charitable foundations.

PLR 201330028 and PLR 201330029 - Late entity classification elections for foreign entities to be treated as disregarded entities.  Form 8832. Treas. Reg. §301.7701-3(c).

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. 

Tags: 355 Spin-Offs, 901 Foreign Tax Credits, 1291 PFICs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Country - Canada, Form 8621, Form 8832

International PLRs of the 28th week of 2013

2013-09-05

For the 28th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201328003 - Multiple cash transfers disregarded as a circular flow of cash (cash contribution by Foreign Parent into Newco, followed by Newco cash purchase of Oldco Subsidiaries, followed by Oldco distribution of cash to Foreign Parent).  Transaction treated as though Oldco distributed shares of Subsidiaries to Foreign Parent and Foreign Parent then contributed Subsidiaries into Newco.  Foreign Parent then formed Newco 2, contributed shares of Oldco into Newco 2 and liquidated Oldco.  Contribution and liquidation treated as a 368(a)(1)(F) reorganization.

PLR 201328021 - Late entity classification election for a foreign entity to be treated as a corporation.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201328024 - Code §355 spin-offs involving U.S. and foreign corporations that are directly or indirectly owned by a foreign parent company.

 

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Form 8832, Other - Circular flow of cash

International PLRs of the 15th week of 2013

2013-08-20

For the 15th week of 2013, the IRS published the following Private Letter Ruling relating to international taxation.

PLR 201315016 - Code §355 spin-off and reorganizations of controlled foreign corporations. Code §368(a)(1)(D).

Tags: 355 Spin-Offs, Authority - PLRs / CCAs

International PLRs of the 14th week of 2013

2013-08-19

For the 14th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201314001 - Code §355 spin-offs involving U.S. and foreign corporations that are directly or indirectly owned by a foreign parent company.  Code §368(a)(1)(D).

PLR 201314002 - A real estate investment trust’s (REIT’s) deemed inclusions as Subpart F Income under Code §951 and passive foreign investment company (“PFIC”) inclusions under Code §1293 are considered qualifying income under Code §856(c)(2).

PLR 201314003 - Reorganization of foreign corporations owned by a U.S. parent company.  Code §368(a)(1)(F).

PLR 201314005 - Application of the worthless stock deduction to a U.S. parent with foreign subsidiaries. Code §165(g)(3)(B).

PLR 201314010 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201314019 - Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23.

PLR 201314026 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201314027 - Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23.

PLR 201314037 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201314039 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

Tags: 355 Spin-Offs, 856 REITs, 1291 PFICs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Country - Canada, Form 8621, Form 8832, Form 8891

International PLRs of the 12th week of 2013

2013-08-16

We have fallen months behind in publishing our weekly summary of private letter rulings with international considerations. We are in the process of getting caught up. Over the next several weeks we plan to publish posts of the missing weeks.

For the 12th week of 2013, the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation.

PLR 201312017 – Code §355 spin-off and reorganizations of controlled foreign corporations. Code §368(a)(1)(D).

PLR 201312022 – Code §355 spin-off and reorganizations of controlled foreign corporations. Code §368(a)(1)(D).

PLR 201312024 - Consent was granted to change methods for measurement and timing of employee stock options, restricted shares, or restricted share units pursuant to Treas. Reg. § 1.482-7(d)(3)(iii)(B) and Notice 2005-99, for purposes of determining the amount the taxpayer must include in its cost sharing arrangement as intangible development costs.

CCA 201312033 - With the creation of the check the box regulations, the filing of the 1120F as a partner in the partnership does not guarantee that the partner will be treated as a C corporation for purposes of TEFRA.

CCA 201312045 - Judicial doctrines, including the economic substance doctrine, can be used to challenge a foreign tax credit claim that otherwise meets the technical requirements of the Code and relevant regulations.

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 482 Cost Sharing Arrangements, Authority - PLRs / CCAs

International PLRs of the 46th week of 2012

2012-11-24

This week the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201246006 - Late entity classification election for foreign entities to be treated as partnerships. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201246014 -Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201246015 -Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201246016 -Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

 PLR 201246021 -Extension of time granted to file Code §338(g) elections for qualified stock purchases of four controlled foreign corporations by a disregarded entity of an S corporation.

PLR 201246027 -Code §355 spin-offs involving U.S. corporations that are directly or indirectly owned by a foreign parent company.

Tags: 338 Elections, 355 Spin-Offs, Authority - PLRs / CCAs, Form 8832

International PLRs of the 44th week of 2012

2012-11-10

Last week the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201244001 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201244003 - Late passive foreign investment company ("PFIC") mark-to-market election.  Form 8621.  Treas. Reg. §1.1296-1(h).

PLR 201244006 - Code §355 spin-offs involving foreign corporations with foreign parent company.

PLR 201244008 - Code §355 spin-off and reorganizations of controlled foreign corporations.

PLR 201244011 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201244013 - Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23.

Tags: 355 Spin-Offs, Authority - PLRs / CCAs, Country - Canada, Form 8832, Form 8891

International PLRs of the 38th, 39th & 40th weeks of 2012

2012-11-03

Several weeks ago the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation.

PLR 201238005 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23.

PLR 201239003 - Code §368(a) reorganizations involving foreign subsidiaries.

PLR 201239005 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23.

PLR 201240017 - Code §355 spin-offs involving foreign corporations with foreign parent company.

CCA 201240019 - Code §§114 and 951, the extraterritorial income ("ETI") exclusion for purposes of computing Subpart F income is zero (i.e., ETI cannot be excluded from Subpart F income).

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 951 Subpart F Income, Authority - PLRs / CCAs, Country - Canada, Form 8891, Other - Other

International PLR of the 33rd week of 2012

2012-08-25

Last week the IRS published the following Private Letter Ruling relating to international taxation for the 33rd week of 2012.

PLR 201233016 - Spin-off and reorganizations of controlled foreign corporations.

Tags: 355 Spin-Offs, 368 Corporate Reorgs, Authority - PLRs / CCAs

International PLRs of the 32nd week of 2012

2012-08-25

Recently the IRS published the following Private Letter Rulings relating to international taxation for the 32nd week of 2012.

PLR 201232010 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201232014 - Spin-off, including whether gain is recognized under Code §367(a) as part of a reorganization.

PLR 201232025 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23.

PLR 201232033 - Spin-offs and reorganizations of controlled foreign corporations.

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Country - Canada, Form 8832, Form 8891

International PLRs of the 29th week of 2012

2012-07-21

Last week the IRS published the following Private Letter Rulings relating to international taxation for the 29th week of 2012.

PLR 201229002 - Spin-off by a controlled foreign corporation followed by reorganizations.

PLR 201229006 - Late entity classification election for a foreign entity to be treated as a partnership.  Form 8832.  Treas. Reg. §301.7701-3(c). 

PLR 201229009 - Late relief for a foreign entity treated as a partnership to make a Code §754 election.

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Form 8832

International PLRs of the 28th week of 2012

2012-07-21

Several weeks ago the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation for the 28th week of 2012.  There were no international related Private Letter Rulings for the 27th week of 2012.

PLR 201228013 - Taxpayer is a resident alien and will become a nonresident alien, and then again a resident alien.  Taxpayer’s unused net operating losses that were generated while he was taxed as a U.S. resident, and that would have been allocated and apportioned, in accordance with the rules in Treas. Reg. § 1.861-8(e)(8), to the gross income of the U.S. business had he been taxed on such income as a nonresident alien for such years, may be used to the extent provided in Treas. Reg. § 1.861-8 to offset gross income effectively connected with the conduct of the U.S. business while he is a nonresident alien.  Taxpayer may carry over any unused net operating losses from the U.S. business allocated and apportioned to income effectively connected with the conduct of the U.S. business while he is taxed as a nonresident alien, and may apply such losses against gross income from the U.S. business after he reacquires U.S. resident status.  Taxpayer may carry over any unused net operating losses from the U.S. business generated while he was taxed as a U.S. resident, if still available, against his gross income after he reacquires U.S. resident status.

PLR 201228020 - Gain from the disposition of carbon credits allocated to a controlled foreign corporation were not foreign personal holding company income.

PLR 201228021 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201228030 - Spin-off and reorganizations of controlled foreign corporations.

PLR 201228031 - Late entity classification election for foreign entity to be treated as a disregarded entity.  Form 8832.  Treas. Reg. §301.7701-3(c).

PLR 201228032 - Late entity classification election for foreign entity to be treated as a disregarded entity.  Form 8832.  Treas. Reg. §301.7701-3(c).

PLR 201228033 - Multi-tiered spin-offs, including spin-off by a controlled foreign corporation.

CCA 201228035 - Code §267(a)(3) applies to the patronage dividends paid by a cooperative to its related foreign patrons, so the cooperative will not be able to deduct the patronage dividends under Code §1382 until the amounts are includible in the foreign patrons’ gross income, subject to the exceptions and special rules set forth in § 267(a)(3)(B) and Treas. Reg. §1.267(a)-3(c).

Tags: 355 Spin-Offs, 368 Corporate Reorgs, 951 Subpart F Income, 1291 PFICs, 7701(b) Individual Residency, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Form 8832, Other - Other

International PLRs of the 15th and 16th Weeks of 2012

2012-04-23

Last week and the week before, the IRS published the following written determinations relating to international taxation. 

PLR 201215005: Spin-off of domestic corporation to a foreign parent

[PLR?] 201215011: An organization with charitable activities outside U.S. did not meet the operational test of Code §501(c)(3) because it could not substantiate that its assets were used exclusively for exempt purposes.

Late entity classification elections for foreign entities to be treated as disregarded entities.  Form 8832.  Treas. Reg. §301.7701-3(c):

Late entity classification elections for foreign entities to be treated as associations taxable as corporations.  Form 8832.  Treas. Reg. §301.7701-3(c). 

PLR 201216026: Acquisition of foreign target treated as qualified stock purchase under Code §338(d)(3), even though a portion of the shares were sold, causing the percentage owned after the sale to be below 80%.

Tags: 338 Elections, 355 Spin-Offs, 7701-3 Check-the-Box Elections, Authority - PLRs / CCAs, Form 8832

Spin-Off to Foreign Parent Video

2012-04-21

Today we uploaded a new video on PLR 201215005, a spin-off of a domestic subsidiary to a foreign parent.

Tags: 355 Spin-Offs, Other - Videos