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REG-115646-25: Pro Rata Share of Subpart F Income, Tested Income, or Tested Loss

Date: 2026-08-26
Links to Federal Register: HTML, PDF
Document Number: 2026-17365, RIN: 1545-BR77
Action: Notice of proposed rulemaking.

Abstract: This document contains proposed regulations relating to the determination of a United States shareholder's pro rata share of subpart F income, tested income, or tested loss of a controlled foreign corporation. The proposed regulations would affect shareholders of foreign corporations, including United States shareholders of controlled foreign corporations.

Word frequency
Notable phrases   Frequency
taxable year      226
controlled foreign corporation      152
subpart f income      141
pro rata share      133
united states shareholder      119
tested income      93
earnings and profits      75
tested loss      73
class of stock      56
hypothetical distribution      50
united states person      46
allocable earnings and profits      44
significant ownership variance      36
preferred shares      35
controlling section 958(a) u.s. shareholder      25
status change event      25
cfc inclusion year      19
allocable earnings and profits distributed      14
day(s) in the cfc year      12
weighted average share count      9

Reg. Cites   Frequency
1.951-1(e)(2)(ii)      12
1.951A-1      11
1.951-1(d)(2)      7
1.245A-5(e)      7
1.951-1      6
1.951-4      6
1.951-1(b)      5
1.245A-5      5
1.1502-80(j)      5
1.6038-2      4
1.6038-2(f)(8)      4
1.958-1(d)      4
1.958-1(d)(1)      3
1.1502-76(b)      3
1.951-1(f)      3
1.951A-1(d)      3
1.951-1(e)(2)(i)      3
1.951A-6(b)      3
1.951-1(d)(2)(i)      3
1.6038-2(f)      3

Sec. Cites   Frequency
958(a)      65
951      32
951A      22
951(a)(2)(b)      21
245A      19
951(a)(1)(a)      16
951(a)(2)      12
951(a)      11
951(a)(1)(b)      9
951B      8
954(c)(6)      6
952      6
956      5
951(a)(2)(a)      5
960      5
1248      5
957(a)      4
951(b)      4

Authorities Referenced:


Statistics

Number of pages: 26, words: 29,229, sentences: 906
Average words per sentence: 32