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IRS Promises Further Guidance on CFC-to-CFC PTEP Distributions

  • 1.  IRS Promises Further Guidance on CFC-to-CFC PTEP Distributions

    Posted 02-10-2023 13:46
    Edited by Kelly Madigan 02-10-2023 14:10

    https://www.taxnotes.com/tax-notes-federal/controlled-foreign-corporations-cfcs/irs-promises-further-guidance-cfc-cfc-ptep-distributions/2023/02/06/7fxcc

    • Future guidance is expected on the treatment of distributions of previously taxed earnings and profits (PTEP) between controlled foreign corporations for purposes of applying subpart F.
    • In the context of third-party buyers and sellers, some taxpayers have been taking the position that a section 959(b) distribution reduces a buyer’s subpart F income and GILTI the same way that it’s working for the consolidated group.
    • Future guidance could hold that a section 959(b) distribution is not a dividend for section 951(a)(2)(B) purposes.


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    Kelly Madigan
    Tax Counsel
    Tax Executives Institute, Inc.
    Washington DC
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