On Sept. 30, officials from Treasury and the IRS provided an update on a number of guidance projects relating to international tax. Speaking at the American Bar Association Section of Taxation’s fall meeting in Boston, the officials discussed anticipated timing for ongoing and upcoming guidance projects, including some of those listed in this year’s IRS Priority Guidance Plan
. The projects were generally discussed in two categories – projects anticipated to be completed by the end of 2016 and projects anticipated to be completed by the end of 2017.
In 2016, the officials said they anticipated the following guidance projects:
Final regulations under Section 367 (REG-139483-13) addressing transfers made by U.S. persons of certain property, including foreign goodwill and going-concern value
Voluntary country-by-country (CbC) reports for the 2016 tax year
Final Section 721(c) regulations addressing U.S. persons’ transfers of certain property to a partnership that has foreign partners
Final Section 956 regulations addressing treatment as U.S. property of property held by a controlled foreign corporation in connection with certain transactions involving partnerships
Section 901(m) regulations addressing denial of foreign tax credits with respect to foreign income not subject to U.S. taxation by reason of covered asset acquisitions
Long awaited Section 987 regulations addressing branch transactions (as part of a “foreign currency package”)
On the horizon for 2017, the officials said they anticipated the following guidance projects:
Final Section 7874 regulations addressing transactions that are structured to avoid the purposes of Sections 7874 and 367 (so-called inversion regulations) and new Section 7874 regulations addressing private placement.
Guidance addressing cloud transactions (i.e., service v. lease characterization).
Notably absent from the discussion were the Section 385
regulations addressing related-party lending transactions. However, on Sept. 30, Treasury sent the Section 385 regulations to the White House Office of Information and Regulatory Affairs (OIRA) for final review. The OIRA has 90 days to review the regulations. This review is generally the last step when finalizing regulations. See OIRA’s notice
Partner, Washington National Tax Office
+1 202 861 4104
Exp. Manager, Washington National Tax Office
+1 202 521 1509
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.