Date: 2021-01-15
Links to Federal Register: HTML, PDF
(Proposed Regulation: REG-105474-18 HTML, PDF)
Document Number: 2020-27009, RIN: 1545-BO59
Action: Final regulations.
Abstract: This document contains final regulations regarding the determination of whether a foreign corporation is treated as a passive foreign investment company ("PFIC") for purposes of the Internal Revenue Code ("Code"), and the application and scope of certain rules that determine whether a United States person that indirectly holds stock in a PFIC is treated as a shareholder of the PFIC. The regulations affect United States persons with direct or indirect ownership interests in certain foreign corporations.
| Notable phrases | Frequency |
|---|---|
| tested foreign corporation(s) | 353 |
| look-through subsidiar(y|ies) | 144 |
| United States person(s) | 58 |
| 25 percent test | 42 |
| conduct of an insurance business | 33 |
| applicable insurance liabilities | 32 |
| facts and circumstances test | 29 |
| publicly traded foreign corporation | 25 |
| active partner test | 21 |
| principal purpose anti-abuse rule | 15 |
| predominantly engaged in an insurance business | 13 |
| relative to the no-action baseline | 12 |
| foreign personal holding company income | 12 |
| performed by the officers and employees | 7 |
| Reg. Cites | Frequency |
|---|---|
| 1.1297-2 | 18 |
| 1.1298-2 | 17 |
| 1.1297-6 | 17 |
| 1.1297-1 | 17 |
| 1.1297-4 | 16 |
| 1.1298-4 | 15 |
| 1.1297-5 | 13 |
| 1.1297-2(b)(2) | 11 |
| 1.1291-1(b)(8)(iv) | 7 |
| 301.7701-3 | 6 |
| 1.1297-1(c)(1)(ii) | 6 |
| 1.1291-1 | 5 |
| 1.1297-1(e) | 5 |
| 1.1297-2(b)(2)(i) | 5 |
| 1.1297-1(c)(1)(i)(A) | 5 |
| 1.1297-1(f)(1)) | 5 |
| 1.1297-4(d)(5)(i) | 5 |
| 1.861-9T | 5 |
| 1.1297-4(d)(5)(iii) | 5 |
| 1.1297-1(f)(2)) | 4 |
| Sec. Cites | Frequency |
|---|---|
| 1297(c) | 60 |
| 1297(b)(2)(C) | 48 |
| 1297 | 45 |
| 1298(b)(7) | 43 |
| 1297(a)(2) | 36 |
| 954(h) | 27 |
| 1297(f)(2) | 24 |
| 1297(a)(1) | 22 |
| 1297(b)(1) | 20 |
| 1291 | 17 |
| 1297(b)(2)(B) | 17 |
| 1297(b)(2) | 15 |
| 1297(e) | 15 |
| 954(c) | 14 |
| 531 | 14 |
| 1297(a) | 13 |
| 954(c)(2)(A) | 12 |
| 1297(f) | 11 |
| 1298(b)(3) | 11 |
Statistics
Number of pages: 64, words: 72,211, sentences: 2,197
Average words per sentence: 32