Alston & Bird Tax Blog

Tax Cuts and Jobs Act

What’s Your Source? Proposed Regulations on Sourcing Inventory Sales

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Is your inventory sales income U.S. or foreign source? Well, it depends. In case you missed it, our International Tax Group explores the various sourcing rules the IRS has proposed to sort out possible inconsistencies and overlaps caused by the Tax Cuts and Jobs Act. Place of production now determines source for sales of produced inventory Coordinating Section 863(b) and Section 865 for sales through an office The overlap of Section 865(e)(2) and Section 864(c)(4)(B)(iii) for certain “nonresidents” Read the full advisory here. [...]Read more

Downward Stock Attribution for CFC Purposes

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Missing piece to CARES? Our Federal Tax Group excavates this missing piece and investigates how it would have restored what was repealed by the Tax Cuts and Jobs Act. Restoration of Section 958(b)(4) New Section 951B A newly minted controlled foreign corporation (CFC) regime Ready full advisory here. [...]Read more

From Obscurity to Spotlight: The Section 962 Election

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In case you missed it's release right before the President's Day holiday weekend, our International Tax Group addressed an election under Section 962 available to individual U.S. shareholders of certain foreign corporations to be taxed as a C corporation, which before tax reform was a rarely utilized and often forgotten tool that has recently been thrust into the spotlight due to its potential benefits. The rise in popularity of the Section 962 election Smith v. Commissioner, an unfavorable ruling for U.S. shareholders receiving distributions of foreign earnings subject to a Section 962 [...]Read more

The BEAT (Still) Goes On – New Final and Proposed BEAT Regulations

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Earlier this week, our International Tax Group analyzed some of the most interesting and significant provisions of the new Treasury and IRS regulations for the base erosion and anti-abuse tax. Clarifications about base erosion payments Clarifications about aggregate groups Election to waive deductions Read the full advisory here. [...]Read more

Down the Rabbit Hole: Guidance Addressing Downward Attribution After Repeal of Section 958(b)(4)

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The IRS released Proposed Regulations and a Revenue Procedure addressing the Tax Cuts and Jobs Act’s repeal of Section 958(b)(4). Our International Tax Group explores how this guidance affects numerous provisions of the Code. Downward attribution beyond Subpart F, GILTI, and Section 965 Silence on the portfolio interest exemption Safe harbors and eased reporting requirements Read the full advisory here. [...]Read more