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REG-115145-25: Section 898(c) Transition Rule for Allocating Foreign Taxes and Section 960(d)(4) Foreign Tax Credit Disallowance

Date: 2026-08-03
Links to Federal Register: HTML, PDF
Document Number: 2026-15614, RIN: 1545-BR76
Action: Notice of proposed rulemaking.

Abstract: This document contains proposed regulations that relate to allocating foreign taxes of foreign corporations affected by the repeal of the one-month deferral election and to the disallowance of foreign tax credits on certain distributions of previously taxed earnings and profits. The proposed regulations would affect taxpayers that operate in foreign countries through certain foreign corporations and taxpayers that claim the foreign tax credit.

Word frequency
Notable phrases   Frequency
foreign income tax(es)      157
first required year      120
succeeding taxable year      81
specified foreign corporation      35
relevant succeeding year      32
specified foreign income taxes      27
earnings and profits      23
foreign tax credit      22
foreign net income tax      16
income taxes paid      14
section 901 taxpayer      14
cfc income group      13
previously taxed earnings and profits      11
allocated to the succeeding taxable year      9
fbcserv income group      9
foreign income tax assigned      9
tax assigned to each income group      7
the section 951a category      5
ptep account      5
required to change its taxable year      4

Reg. Cites   Frequency
1.861-20      14
1.901-2(f)(5)      10
1.1502-76(b)      10
1.898(c)-1      7
1.898(c)-1(h)      5
1.901-2(a)      4
1.901-2(f)      4
1.960-3(b)(6)      3
1.960-3(c)(2)      3
1.959-3(b)      3
1.964-1(c)(3)(iii)      3
1.441-2      2
1.951A-2(c)(7)(viii)      2
1.901-1      2
1.987-11      2
1.960-7      2
1.960-3      2
1.951A-2(c)(7)      2
1.954-1(d)      2
1.951A-2(c)(7)(ii)      2

Sec. Cites   Frequency
951A      54
901      22
960(d)(4)      22
3      15
959(a)      13
905(c)      11
898(c)(2)      10
898(c)      8
987      8
960(b)(1)      8
960(a)      5
898(c)(1)      5
898      5
706(b)      4
898(b)      4
960(b)      4
960(d)(1)      4

Authorities Referenced:


Statistics

Number of pages: 14, words: 15,564, sentences: 530
Average words per sentence: 29