U.S. International Tax Committee

On March 11, 2025, TEI filed comments with the IRS and U.S. Department of the Treasury regarding proposed regulations under section 987, which were published on December 11, 2024. TEI's comments included recommending additional transactions be included in the recurring transfer group election under the proposed regulations, making the election available when companies use net value computations, and exempting CFCs from application of section 987(3). TEI's comments were prepared under the aegis of its U.S. International Tax Committee and Tax Reform Tas Force.

On March 20, 2025, TEI submitted comments to an Expert-Sub Group of OECD Working Party 10 regarding the Working Party's GloBE Information Return XML Schema and User Guide, which was published on January 15, 2025. TEI's comments focused on the need for the OECD to provide more information about, and examples illustrating, the XML Schema and its validation rules. TEI's EMEA Direct Tax Committee led preparation of the comments. Benjamin Shreck, TEI Tax Counsel, coordinated the comment drafting process.

On March 2, 2025, TEI submitted comments regarding the long-awaited proposed previously taxed earnings and profits ("PTEP") regulations. TEI's comments focused on the need to eliminate double taxation of PTEP by recommending a change to the proposed regulations' "share-by-share" approach to section 961 basis increases. TEI recommended that section 961 basis increases should be allocated pro-rata across all a U.S. shareholder's shares in a controlled foreign corporation. TEI's comments were prepared by members of its U.S. International Tax Committee and Tax Reform Task Force. Benjamin R.

On December 17, 2024, TEI submitted comments to the OECD recommending it simplify the Pillar Two reporting requirements. TEI recommend the OECD help coordinate the timing of payments, adjustments, and refunds across jurisdictions, which would reduce MNE's compliance burden. Other recommendations included implementing a robust exchange of information system and a template information reporting form. TEI's comments were drafted by members of its U.S. International and EMEA Direct Tax Committees, along with the Tax Reform Task Force. Benjamin R.

On October 7, 2024, TEI submitted comments to the Internal Revenue Service and U.S. Department of the Treasury regarding proposed regulations addressing dual consolidated losses ("DCL") and new disregarded payment loss rules. TEI's comments focused on the interaction of the DCL rules and the OECD Pillar Two regimes, "triggering events" under the DCL rules, and the newly created DPL regime, among other things. TEI's comments were prepared under the aegis of its Tax Reform Task Force, whose Chair is Andreia Verissimo. Benjamin R.

On June 10, 2024, TEI sent a letter to the Brazilian tax authorities recommending Brazil adopt a cooperative compliance program with taxpayers. TEI noted the advantages of such a program include providing tax authorities with transparency and taxpayers with certainty, improving the risk assessment process, and assist the Brazilian tax authorities in implementing Brazil's new transfer pricing legislation, among other things. TEI's letter was prepared under the aegis of its U.S. International Tax Committee. Benjamin R.

On March 31, 2024, TEI submitted comments to the Internal Revenue Service (the "Service") regarding foreign tax redeterminations ("FTRs") under section 905(c). The post-TCJA final regulations resulted in a significant increase in the compliance burden on taxpayers with FTRs. TEI's letter recommended several methods to reduce this compliance burden as well as the administrative burden on the Service when auditing FTRs. TEI's comments were prepared under the aegis of its U.S. International Tax Committee, whose Chair is Ag Samoc. Benjamin R.

On February 9, 2024, TEI submitted comments to the Internal Revenue Service and U.S. Department of the Treasury regarding Notice 2023-80 (the "Notice"). The Notice provides interim guidance addressing the application of the foreign tax credit and dual consolidated loss ("DCL") rules to certain types of taxes described in the OECD Pillar Two Global Anti-Base Erosion ("GloBE") Model Rules.

On February 12, 2024, TEI submitted comments regarding REG-132422-17 addressing recognition and deferral of section 987 gain or loss. TEI's comments included several simplifying recommendations to ease the compliance burden on taxpayers, a request to defer the effective date of any final regulations, and how to address suspended losses. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of TEI's comments.

Read the comments here.