Skip to Main Content
 

Dianne Mehany Comments on Taxing U.S. Shareholders of Foreign Corporations

February 12, 2018, Tax Notes

Section 962 provides an election for individuals who are U.S. shareholders of foreign corporations to be taxed at corporate rates on amounts included in income under section 951(a) and to claim section 960 deemed paid credits for subpart F inclusions. [Treasury officials suggested at the American Bar Association Section of Taxation meeting February 9 in San Diego that use of the election would aid individuals in avoiding the higher repatriation tax.]

. . .

But an election under 962 to be taxed as a corporation and avoid the higher repatriation tax “is not as simple as it sounds, and not really a feasible option for many individuals,” Dianne Mehany of Caplin & Drysdale told Tax Analysts. “There are a number of consequences to that election, including especially that a taxpayer would not be able to access the cash to pay the repatriation tax without incurring a second level of tax.”

For the full article, please visit Tax Notes’ website (subscription required).

Excerpt taken from the article “Treasury Officials Preview Upcoming Transition Tax Guidance” by Amanda Athanasiou for Tax Notes.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Business, Investment & Transactional Tax
-Complex Litigation
-Corporate Law
-Employee Benefits
-Exempt Organizations
-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office:
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000
        New York, NY Office:
600 Lexington Avenue
21st Floor 
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2018 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practices