IRS Announces Regulations Identifying Two New Foreign Tax Credit Splitter Arrangements
The IRS has announced forthcoming regulations (Notice 2016-52) under Section 909 dealing with foreign tax credits after a foreign adjustment.
The guidance will identify two new foreign tax credit splitter arrangements relating to certain foreign corporations that pay foreign income taxes pursuant to “foreign-initiated adjustments.” In the notice, the IRS stated it is aware certain taxpayers may take steps to separate the anticipated tax payments resulting from foreign-initiated adjustments from the related income. Foreign-initiated adjustments […]