Yesterday the IRS published AM 2021-002.  This AM concludes that a foreign eligible entity is classified pursuant to Treas. Reg. §301.7701-3(b)(2) (“the default classification provision”) during the period in which its classification is not relevant.  The AM states that this determination is made when the classification of the entity first becomes relevant, but the classification applies during the non-relevant period.

The AM also concludes that the 60-month limitation rule does not apply if the election to change the classification is effective on the first date the classification is relevant.

The example in the AM dealt with an entity (“X”) whose default classification was flow-thru (partnership or disregarded entity) because its owners did not have limited liability with respect to X.  X became relevant on “Date 3” in two different circumstances.  First, the owner became a US person on Date 3, causing X to be relevant for US tax purposes.  Second, the effective date of the check-the-box election was on Date 3, causing X to be relevant for US tax purposes.

In both scenarios, X elects to be classified as an association (i.e., a corporation).  The AM concludes that under both scenarios X was a flow-thru entity from the date it was organized until the close of the day before Date 3.  Then, at the beginning of Date 3, X was classified as a corporation.  The owner of X was treated as contributing the assets and liabilities of X to X in exchange for X stock immediately before the close of the day before Date 3.

This would appear to be good news for certain taxpayers who have engaged in pre-immigration tax planning by making check-the-box elections with effective dates prior to becoming US persons.  If the owners of the foreign entity had limited liability with respect to the entity, it would default to be classified as a corporation from the date it was formed until the date it became relevant.  An election to classify the entity as a flow-thru entity would make the entity relevant on the effective date of the election.  In addition, the election would trigger a deemed liquidation of the corporate entity on the date prior to the effective date of the election.  Such a deemed liquidation would trigger a step-up in the basis of appreciated assets that were deemed distributed.

Earlier this month, the IRS released Rev. Proc. 2017-1.  Among other things, the first revenue procedure of the year includes the new user fees for seeking relief under Treas. Reg. §301.9100 ("9100 relief").  A taxpayer might seek 9100 relief in order to make a late election, such as a late entity classification election (also known as a “check-the-box election”) on Form 8832.

The new IRS fees are effective for requests received after February 1, 2017.  The amount of the user fee depends on the gross income of the taxpayer:

1. Taxpayers with gross income of under $250,000 will have a 9% increase --- from $2,200 to $2,400
2. Taxpayers with gross income greater than $250,000 and less than $1 million will have a 17% increase --- from $6,500 to $7,600
3. Taxpayers with gross income of $1 million or more will have a 2% increase --- from $9,800 to $10,000

The graph below tracks these user fees from 2007 to 2017.  The 2017 user fee for high-income taxpayers is the same as it was in 2007.  In contrast, the 2017 user fee for low and medium income taxpayers has more than tripled since 2007.

Today we published a video discussing the Tax Court case Dover v. Commr., 122 T.C. 19 (2004).  The case dealt with check-the-box election planning to avoid Subpart F Income.

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

PLR 201348002 - Late entity classification election for a foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201348003 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201348004 - Late entity classification election for a foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201348011 - A U.S. corporation will not 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).

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

PLR 201347002 - Ordinary (and not capital) loss allowed on liquidation of worthless controlled foreign corporation.  The fees earned by a foreign subsidiary did not constitute interest for purposes of Code §165(g)(3)(B).  Rev. Rul. 88-65.

PLR 201347006, PLR 201347018 - Late IC DISC elections.  Form 4876-A, Code §992(b)(1)(A).

PLR 201347007 - Late entity classification election for a foreign entity to be treated as an association taxable as a corporation.  Form 8832.  Treas. Reg. §301.7701-3(c).

PLR 201347008 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201347016 - Late election of Code §911 exclusion.  Form 2555. Treas. Reg. §1.911-7(a).

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

PLR 201345002, PLR201345007, PLR201345008, PLR201345009, PLR201345010, PLR201345011, PLR201345012, PLR201345013, PLR201345014, PLR201345015, PLR201345016, PLR 201345022 - Late entity classification elections for foreign entities to be treated as partnerships. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201345031 - Denial of Code §501(c)(3) exemption for domestic organization acting as a "foreign feeder" charity. 

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

PLR 201342002 - Late entity classification election for a foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201342004 - Allocation of loss carryovers and tax credit carryovers after integration of a foreign parent's two consolidated groups.  Code §1502.

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). 

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

PLR201338011 - Extension of time granted to file Code §338(g) elections for qualified stock purchases of two controlled foreign corporations by a U.S. corporation.

PLR201338014, PLR201338027, PLR201338036, PLR201338038 - Late Canadian registered retirement savings plan ("RRSP") deferral elections.  Form 8891.  Rev. Proc. 2002-23.

PLR201338030, PLR201338032 - Late entity classification elections for foreign entities to be treated as associations taxable as corporations.  Form 8832.  Treas. Reg. §301.7701-3(c).

PLR201338037, PLR201338041 - Late entity classification elections for foreign entities to be treated as disregarded entities. Form 8832. Treas. Reg. §301.7701-3(c).

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

PLR 201337005, PLR 201337006, PLR 201337008, PLR 201337009 - Late Canadian registered retirement savings plan ("RRSP") deferral elections, including a locked-in retirement account (LIRA), or Locked-in RRSP.  Form 8891.  Rev. Proc. 2002-23.

PLR 201337011 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

CCA 201337015 - IRS cannot assert transferee liablity against a foreign entity with no property in the U.S.

Last week, the 35th week of 2013, the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201335002 - Late IC DISC election.  Form 4876-A, Code §992(b)(1)(A).

PLR 201335003 & PLR 201335004 - Late entity classification elections for a foreign entities to be treated as disregarded entities.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201335008  - Taxpayer was permitted to change from the fair market value method to the tax book value method of asset valuation for interest expense allocation. Temp. Treas. Reg. §§1.861-8T(c)(2) and 1.861-9T(g)(1)(ii).

PLR 201335010 - Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23.

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).

For the 31st week of 2013, the IRS published the following Private Letter Ruling relating to international taxation.

PLR 201331001 - Consent for a foreign entity to be treated as an association less than 60 months after its previous classification change .  Form 8832. Treas. Reg. §301.7701-3(c).

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. 

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.

For the 22nd week of 2013, the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201322007: Request to revoke a Code §83(b) election was granted because the request to revoke was within 30 days of receiving the property. Rev. Proc. 2006-31.

PLR 201322009 - Application of certain look-through rules for purposes of determining whether a foreign corporation is a passive foreign investment company ("PFIC") within the meaning of section 1297.

PLR 201322017 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201322018 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201322021 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201322022 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201322033 - Determination that a foreign based futures and options exchange is a “qualified board or exchange” within the meaning of section 1256(g)(7)(C) of the Code.

PLR 201322037 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201322038 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

For the 21st week of 2013, the IRS published the following Private Letter Rulings relating to international taxation.

PLR 201321001, PLR 201321004, PLR 201321013, PLR 201321014, PLR 201321015 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201321007 - Applicability of Code §§361 and 897 to a foreign corporation holding United States Real Property Interests ("USRPIs") when such corporation reincoroporates in the United States.

PLR 201321010 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201321011 - A taxpayer may elect to retroactively change from the tax book value (“TBV”) method to the alternative tax book value (“ATBV”) method of asset valuation for purposes of apportioning interest expense.  Temp. Treas. Reg. §1.861-9T(g)(1)(ii).  Treas. Reg. §1.861-9(i).

PLR 201321018 - U.S. corporation's reorganization as a foreign corporation triggered an indirect disposition of its intellectual property.  Code §368(a)(1)(F).   

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).

Last week the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation.

PLR 201311001 - Consent was granted to change methods for measuring and timing and identifying employee stock options, restricted stock units, and performance-based restricted stock units pursuant to Treas. Reg. §1.482-7(d)(3)(iii)(C) for purposes of determining the amount the taxpayer must include in its cost sharing arrangement as intangible development costs.

PLR 201311004 - The generation-skipping transfer tax does not apply to taxable distributions or taxable terminations to the extent the initial transfer of property to the trust by a nonresident alien transferor was not subject to the federal estate or gift tax.  Distributions from a foreign estate and terminating distributions from a foreign trust were not subject to generation-skipping transfer tax.

PLR 201311006 - Lawsuit damages payments were excluded from the gross income of nonresident aliens under Code §104(a)(2).  Consequently, the payments were not subject to withholding under Code §1441.

PLR 201311008 - Late entity classification election for a foreign entity to be treated as an association.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201311013 - Late entity classification election for a foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201311014 - Late passive foreign investment company ("PFIC") mark-to-market election.  Form 8621.  Treas. Reg. §1.1296-1(h).

PLR 201311018 - Consent granted to prospectively change method for measuring employee stock options and restricted shares as well as the method for identification pursuant to Treas. Reg. §1.482-7(d)(3)(iii)(C) and Notice 2005-99.

CCA 201311024 - 863(c), ocean activity income vs. transportation income from leasing a vessel.

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

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

PLR 201308003

PLR 201308006

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

PLR 201308012

PLR 201308013

PLR 201308014

PLR 201308023 - Permission granted for early re-election of 911 exclusion.  Form 2555.  Treas. Reg. §1.911-7(b).

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

PLR 201305002 - Late IC DISC election.  Form 4876-A. Code §992(b)(1)(A).

PLR 201305006 - Contractual arrangement treated as a separate foreign business entity for which a check-the-box election could be made to treat the arrangement as a foreign corporation for U.S. tax purposes.  Treas. Reg. §301.7701-2, -5.  Form 8832.  

In the PLR, the Taxpayer intended to enter into a joint venture with an Affiliate by executing a “profit participation agreement (the “Agreement”) under which Affiliate will acquire a percentage interest in the capital, profits, and losses of the Taxpayer’s branches in a particular region in return for a cash investment.  No separate juridical legal entity will be created and the Taxpayer will retain legal ownership of all assets, liabilities, and contractual obligations of the region branches.  The Agreement (i) will be signed outside the U.S., (ii) will be governed by the laws of a foreign country, and (iii) will be subject to the exclusive jurisdiction of the foreign courts.

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

PLR 201302010 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 2012011 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 2012012 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 2012019 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 2012020 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

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

PLR 201301005:  Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201201006:  Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

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

PLR 201250001 - A nonresident alien (“NRA”) who was an income beneficiary of trusts created by her father proposed to release her income interests to the remainder beneficiaries (her descendants).  The NRA’s income interests in the trusts constituted intangible property (within the meaning of Code §2501(a)(2)), not tangible or real property.  Consequently, the transfer was not subject to U.S. gift tax.  In addition, the release of the income interests was not a “qualified disclaimer” as defined in Code §2518(b), and it was not subject to the generation-skipping transfer (GST) tax.

PLR 201250004 - Inbound "F" reorganization and foreign to foreign "D" reorganizations (complex fact pattern - 18 pages long).

PLR 201250016 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

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

PLR 201249008 Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201249014 Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

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

PLR 201248002 - Granted request  to revoke a Code §1504(d) election to treat a contiguous country corporation as a domestic corporation.  The revocation was treated as an outbound F reorganization, with a termination of the year under Treas. Reg. §1.367(a)-1T(e) and deemed exchanges under Treas. Reg. §1.367(a)-1T(f).  

Although the ruling provided that the transaction would be "tax free" under Code §368(a)(1)(F), it explicitly did not express an opinion as to how Code §§367(a) and (d), 987, 1503(d), 904(f), and the regulations thereunder, would apply to the transaction.

PLR 201248005 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201248009 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

PLR 201248010 - Late/retroactive passive foreign investment company ("PFIC") qualified electing fund ("QEF") election.  Form 8621.  Treas. Reg. §1.1295-3(f).

This week the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation.

PLR 201247002: Late entity classification election for foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201247003: Late entity classification election for foreign entity to be treated as a disregarded entity.  Form 8832. Treas. Reg. §301.7701-3(c).

CCA 201247013: A U.S. citizen cannot be treated as a nonresident alien under a “tie-breaker” provision of the Israeli treaty.

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. 

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.

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.

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

PLR 201236001 and PLR 201236016 - Late entity classification elections for foreign entities to be treated as disregarded entities. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201236019, PLR 201236020, and PLR 201236021 - Late entity classification elections for foreign limited liability companies to be treated as “other than [the] default classification[s].” Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201236024 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

9/11/12 UPDATE: In reading CCA 201236025, I noticed that it has an international component to it.  In this CCA, it was determined that certain stock that was labeled as "preferred stock" should properly treated as "common stock" for purposes of Code §302(b)(2).  The stock in question was not limited or preferred as to dividends, not limited as to liquidating distributions, and allowed the holder to participate in corporate growth to a significant extent.  The international aspect of the CCA is that some non-U.S. shareholders had common stock redeemed and treated the redemption as an exchange under Code §302(b)(2).

This week the IRS published the following Private Letter Rulings relating to international taxation for the 34th week of 2012.

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).

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.

Recently the IRS published the following Private Letter Rulings and Chief Cousel Advice relating to international taxation for the 31st week of 2012.

PLR 201231005 - Late entity classification election for a foreign entity to be treated as a corporation. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201231006 - Early re-election of 911 exclusion. The taxpayer moved back to the U.S. and erroneously thought he had to revoke his election because he no longer had any foreign earned income.  Form 2555. Treas. Reg. §1.911-7(b).

PLR 201231008 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

CCA 201231010 - A U.K. resident individual may not rely on the U.K.-U.S. Income Tax Treaty to make a tax-deferred rollover distribution from a U.S. pension scheme to a U.K. pension scheme that is not an “eligible retirement plan.” A lump-sum transfer from a U.S. pension scheme to a U.K. pension scheme that is not an eligible retirement plan is taxable as a distribution in the United States.

Recently the IRS published the following Private Letter Rulings relating to international taxation for the 30th week of 2012.

PLR 201230001 - Late entity classification election for a foreign entity to be treated as a disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201230010 - Late entity classification election for a foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201230012 - Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23.

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.

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).

Several weeks ago the IRS published the following Private Letter Rulings relating to international taxation for the 26th week of 2012.

PLR 201226010 - Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23.

PLR 201226011 - Permission was granted to revoke an election under Treas. Reg. §1.954-2(g)(4). Treas. Reg. §1.954-2(g)(4)(i) provides that a U.S. shareholder can elect to include in its computation of foreign personal holding company income the excess of foreign currency gains over losses or the excess of foreign currency losses over gains attributable to any section 988 transaction (except gains or losses treated as capital gain or loss under section 988(a)(i)(B)).  Thus, the general rule of Treas. Reg. §1.954-1(c)(1)(ii) that net foreign currency losses may not reduce income in any other category of foreign personal holding company income would not apply if the controlled foreign corporation has made this election because the regulations specifically provide that the excess of foreign currency losses over foreign currency gains may reduce other categories of foreign personal holding company income.

PLR 201226012 - Late entity classification elections for foreign entities to be treated as corporations.  Form 8832.  Treas. Reg. §301.7701-3(c).

PLR 201226014 - Late entity classification election for foreign entity to be treated as a corporation.  Form 8832.  Treas. Reg. §301.7701-3(c).

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

PLR 201224008: Late entity classification election for foreign entity to be treated as a partnership. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201224015: Late Canadian registered retirement savings plan ("RRSP") deferral elections. Form 8891. Rev. Proc. 2002-23. 

PLR 201224025: Late IC DISC election. Form 4876-A. Code §992(b)(1)(A).

The following PLRs were late entity classification elections for foreign entities to be treated as disregarded entities. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201224009
PLR 201224010
PLR 201224020
PLR 201224021
PLR 201224022

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

PLR 201223001: Taxpayer was permitted to change to the tax book value method of asset valuation for interest expense allocation. Temp. Treas. Reg. §§1.861-8T(c)(2) and 1.861-9T(g)(1)(ii).

PLR 201223006: Grandfather rule for “existing 80/20 company” continues to apply. Expansion of the taxpayer’s mineral business did not constitute “an addition of a substantial line of business” within the meaning of Code §871(l)(1)(A)(iii).

PLR 201223009: Late entity classification elections for 10 foreign entities to be treated as partnerships. Form 8832. Treas. Reg. §301.7701-3(c).

PLR 201223010: Late entity classification elections for 10 foreign entities to be treated as disregarded entities. Form 8832. Treas. Reg. §301.7701-3(c).

The IRS published the following Private Letter Rulings relating to international taxation for the 22nd week of 2012

PLR 201222002: Taxpayer was permitted to change to the tax book value method of asset valuation for interest expense allocation. Temp. Treas. Reg. §§1.861-8T(c)(2) and 1.861-9T(g)(1)(ii).

PLR 201222019: Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23.

PLR 201222021: Late Canadian registered retirement savings plan ("RRSP") deferral election. Form 8891. Rev. Proc. 2002-23.

PLR 201222026: Late entity classification election for foreign entity to be treated as disregarded entity. Form 8832. Treas. Reg. §301.7701-3(c).

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

PLR 201219002: Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23. 

PLR 201219004: Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23. 

PLR 201219007: Late entity classification election for foreign entity to be treated as disregarded entity.  Form 8832.  Treas. Reg. §301.7701-3(c). 

PLR 201219009, PLR 201219010, and PLR 201219011: Foreign companies that made elections under Code §953(d) to be taxed as domestic corporations would qualify under as insurance companies under Code §831 if they were domestic corporations.

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):

• PLR 201216001
• PLR 201216003
• PLR 201216004

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

• PLR 201216012
• PLR 201216014
• PLR 201216021
• PLR 201216024

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%.

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

PLR 201213007: Late entity classification election for foreign entity to be treated as disregarded entity.  Form 8832.  Treas. Reg. §301.7701-3(c).

PLR 201213014: Late Canadian registered retirement savings plan ("RRSP") deferral election.  Form 8891.  Rev. Proc. 2002-23.

PLR 201213015: Taxpayer intended to change its classification of a foreign entity to partnership for federal tax purposes but mistakenly filed a Form 8832 to be treated as a disregarded entity, a status for which it was not eligible.

PLR 201213017: Late entity classification election for foreign entity to be treated as disregarded entity.  Form 8832.  Treas. Reg. §301.7701-3(c).

This past week the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation:

PLR 201206003: A CFC’s income from sales to related parties was not foreign base company sales income (“FBCSI”) under the same country manufacturing exception of Code §954(d)(1)(A).  The CFC was incorporated in Country 1 and the products were partly manufactured in Country 1 by an unrelated party.

PLR 201206010: Extension of time granted to file a Code §338(g) election for the qualified stock purchase of a foreign corporation by a foreign corporation.

PLR 201206012: Late entity classification election for foreign entity to be treated as an association taxable as a corporation.  “Form 8832 * * * was inadvertently not timely filed.”  Treas. Reg. §301.7701-3(c) and Treas. Reg. §301.9100-1, -2, and -3.

PLR 201206013: Late entity classification election for foreign entity to be treated as disregarded entity.  “may have inadvertently failed to timely file Form 8832.”  Treas. Reg. §301.7701-3(c) and Treas. Reg. §301.9100-1, -2, and -3.

CCA 201206014: Application of the statute of limitations (Code §6501(c)(8)) to an S corporation and certain of its shareholders.  After the HIRE Act, the entire tax return stays open and not just items related to the 5471.  Both the S corporation and 2 of its shareholders were required to file 5471s.

PLR 201206015: Income earned by a regulated investment company (RIC) from the ownership of a wholly owned subsidiary that is a controlled foreign corporation constitutes qualifying income, whether or not attributable to subpart F income, for purposes of Code §851(b)(2).

Last week the IRS published the following Private Letter Rulings and Chief Counsel Advice relating to international taxation:

PLR 201202007: Spin-off including foreign entities. Code §355.

PLR 201202011: Permission to make a second entity classification election within 60 months of the first entity classification election was granted. Treas. Reg. §301.7701-3(c)(iv).  Form 8832.  60 month limitation on check-the-box elections.

PLR 201202013: Late entity classification elections for two foreign entities to be treated as partnerships and one foreign entity to be treated as a disregarded entity.  Treas. Reg. §301.7701-3(c) and Treas. Reg. §301.9100-1, -2, and -3.  Form 8832.

PLR 201202015: Late entity classification election where "the Form 8832 * * * was inadvertently not timely filed" for a foreign entity.  Treas. Reg. §301.7701-3(c) and Treas. Reg. §301.9100-1, -2, and -3.  Form 8832.

CCA 201202021: Removing the limitation of deduction for interest under Code §163(j) does not qualify as a change in accounting method under Code §446.

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

PLR 201151008: Method for determining unearned premiumns and reserves for life insurance contracts in computing qualified insurance income of a controlled foreign corporation under Code §954(i)(4)(B)(ii).

PLR 201151010: Late entity classification election granted where the foreign entity "inadvertently failed to file a Form 8832"

PLR 201151017: Spin-Off with a foreign company that has American Depositary Shares

PLR 201151019: Consent was granted to revoke safe harbor method elections in computing foreign tax credits with respect to a dual capacity taxpayer under Treas. Reg. §1.901-2A(c)(1).

This week the IRS published the following Private Letter Ruling relating to international taxation:

201146004 - Consent was granted for an extension of time for a foreign entity to make an entity classification election under Treas. Reg. §301.7701-3(a) by filing Form 8832.