Internal Revenue Service July 11, 2019 – Federal Register Recent Federal Regulation Documents

Organizations Under Common Control; Eighty Percent Control Test for a Brother-Sister Controlled Group; Correcting Amendment
Document Number: 2019-14424
Type: Rule
Date: 2019-07-11
Agency: Internal Revenue Service, Department of Treasury, Department of the Treasury
This document contains a correction to Treasury Decision 8179, which was published in the Federal Register for Wednesday, March 2, 1988. Treasury Decision 8179 issued final regulations and withdrew temporary regulations relating to organizations under common control for purposes of certain rules relating to pension, profit-sharing, and stock bonus plans. Treasury Decision 8179 was corrected on May 9, 1988; however, the corrections were not properly incorporated into the Code of Federal Regulations.
Guidance on Passive Foreign Investment Companies
Document Number: 2019-12030
Type: Proposed Rule
Date: 2019-07-11
Agency: Internal Revenue Service, Department of Treasury, Department of the Treasury
This document contains proposed regulations under sections 1291, 1297, and 1298 of the Internal Revenue Code (``Code'') regarding the determination of ownership in a passive foreign investment company within the meaning of section 1297(a) (``PFIC'') and the treatment of certain income received or accrued by a foreign corporation and assets held by a foreign corporation for purposes of section 1297. The regulations provide guidance regarding when a foreign corporation is a qualifying insurance corporation (``QIC'') under section 1297(f) of the Code and the amounts of income and assets that a QIC excludes from passive income and assets pursuant to section 1297(b)(2)(B) (``PFIC insurance exception'') for purposes of section 1297(a). The regulations also clarify the application and scope of certain rules that determine whether a United States person that directly or indirectly holds stock in a PFIC is treated as a shareholder of the PFIC, and whether a foreign corporation is a PFIC. The regulations affect United States persons with direct or indirect ownership interests in certain foreign corporations.