Date: 2025-01-14
Links to Federal Register: HTML, PDF
(Proposed Regulation: HTML, PDF)
Document Number: 2024-31372, RIN: 1545-BM41
Action: Final regulations.
Abstract: This document contains final regulations modifying the rules for classifying transactions involving computer programs, including by applying the rules to transfers of digital content. These final regulations also provide rules for the classification of cloud transactions. These rules apply for purposes of the international provisions of the Internal Revenue Code and generally affect taxpayers engaging in transactions involving digital content or cloud transactions.
| Notable phrases | Frequency |
|---|---|
| digital content | 222 |
| cloud transaction | 153 |
| copyrighted article(s) | 122 |
| predominant character | 87 |
| copyright right(s) | 86 |
| primary benefit or value | 78 |
| digital content transaction | 59 |
| provision of services | 32 |
| typical customer | 32 |
| right to use | 25 |
| on-demand network access | 16 |
| provision of know-how | 13 |
| single category | 12 |
| location of download or installation | 10 |
| substantially similar transaction | 8 |
| benefits and burdens test | 8 |
| principal purpose of tax avoidance | 8 |
| right to reproduce and distribute | 8 |
| hosted on servers | 4 |
| Reg. Cites | Frequency |
|---|---|
| 1.861-18 | 36 |
| 1.861-19 | 17 |
| 1.861-18(f)(2)(ii) | 12 |
| 1.861-18(b)(1)(iv) | 9 |
| 1.861-19(b) | 9 |
| 1.861-7(c) | 8 |
| 1.861-18(b)(3) | 8 |
| 1.861-18(a)(2) | 7 |
| 1.861-18(b)(1) | 7 |
| 1.861-19(c)(2) | 6 |
| 1.861-18(b)(2) | 6 |
| 1.861-18(b)(1)(ii) | 5 |
| 1.861-18(c)(2) | 5 |
| 1.937-3(e) | 4 |
| 1.861-18(h)(19) | 4 |
| 1.861-18(b)(3)(ii)(a) | 3 |
| 1.861-18(h)(24) | 3 |
| 1.861-18(b)(3)(ii)(b) | 3 |
| 1.861-18(b)(3)(ii) | 3 |
| 1.446-1(e) | 3 |
| Sec. Cites | Frequency |
|---|---|
| 7701(e) | 9 |
| 267(b) | 7 |
| 861(a)(6) | 6 |
| 863(b) | 6 |
| 861(a)(4) | 5 |
| 861 | 4 |
| 250 | 4 |
| 6501 | 3 |
| 446(e) | 3 |
| 904 | 2 |
| 679 | 2 |
| 7805(f) | 2 |
| 59A | 2 |
| 842 | 2 |
| 865(a) | 2 |
| 7805 | 1 |
| 267(b)(3) | 1 |
| 1222 | 1 |
Statistics
Number of pages: 27, words: 31,938, sentences: 1,110
Average words per sentence: 28