Following up on Notice 2016-73, issued before the Tax Cuts and Jobs Act changed the landscape of U.S. international taxation, the Internal Revenue Service (IRS) and Treasury recently released a new installment of Killer B proposed regulations. The new proposed regulations, like the earlier installments in the series, serve to prevent the tax-free repatriation of earnings and profits (E&P) through the use of cash to purchase stock as part of a triangular B reorganization. In the post-Tax Cuts and Jobs Act (post-TCJA) environment, tax-free repatriation of earnings, of course, is mostly assured by statute under Code Sec. 245A or through the previously taxed earnings and profits (PTEP) regime.
Fenwick partner Will Skinner published an article in the International Tax Journal in which he reviews some important practical implications of the new proposed regulations.
Read the full article here.