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REG-117273-25: Allocation and Apportionment of Deductions to Foreign Source Section 951A Category Income and Deduction Eligible Income

Date: 2026-09-11
Links to Federal Register: HTML, PDF
Document Number: 2026-18645, RIN: 1545-BR90
Action: Notice of proposed rulemaking.

Abstract: This document contains proposed regulations related to the allocation and apportionment of deductions to foreign source section 951A category income for foreign tax credit limitation purposes and for purposes of calculating deduction eligible income. The proposed regulations would affect taxpayers that operate in foreign countries through foreign corporations and domestic corporations that claim the deduction for foreign-derived deduction eligible income.

Word frequency
Notable phrases   Frequency
foreign source      104
951A category income      76
allocat(ion|ing|ed) (and|or) apportion(ment|ing|ed)      73
u.s. source income      35
allocable to      31
foreign tax credit      17
gross dei      14
class of gross income      13
statutory and residual groupings      13
research and experimental expenditures      10
relative value      9
net cfc tested income      8
value of assets      8

Reg. Cites   Frequency
1.861-17      8
1.861-8(e)(8)(i)      6
1.904-4(p)      5
1.861-9T      5
1.861-8(e)(14)      4
1.861-8      4
1.861-9      4
1.861-8(e)(8)      4
1.250(b)-1(a)      4
1.250(b)-1(d)(2)(ii)      4
1.861-8T(c)(1)      4
1.861-10T      3
1.861-17(b)(2)      3
1.861-8(b)(5)      3
1.904(b)-4      3
1.861-8(e)(6)      3
1.861-10      3
1.861-8(e)(4)(ii)(C)      2
1.861-17(d)      2
1.861-12      2

Sec. Cites   Frequency
951A      92
904(b)(5)      42
986(c)      17
861      14
904      11
904(a)      9
164(a)(3)      8
250(a)(1)(B)      7
904(b)(5)(B)      7
78      7
904(g)(2)(B)      6
904(f)      6
250(b)(3)      6
951(a)(1)(A)      6
250      5
163      5
904(b)      5
250(b)(3)(A)(ii)      4
904(d)(1)(A)      4

Statistics

Number of pages: 10, words: 9,898, sentences: 346
Average words per sentence: 28