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The Foreign Tax Credit _Devereaux_

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					Class number   Class date   Topic                   Required reading     Recommended
                                                                         reading
1              Jan. 20       Intro- policy and
                            background              Intro:
                                                    §§ 901(a),(b),
                            Rules of                164(a), (b),
                            application:            275(a)(4)

                            Separate levy rule

                            Multiple levy rule                           Separate levy rule:
                                                    separate levy        TAM 9713001
                            Qualification as a      rule:
                            tax                     § 1.901-2(d)
                            - specific economic                          Specific econ
                            benefit                 multiple levy        benefit:
                                                    rule:
                                                    § 1.901-2(e)(4)      Treas. Reg. §
                                                                         1.901-1
                                                    qualification as a
                                                    tax:                 Exxon Corp. v.
                                                    § 1.901-             Commissioner, 113
                                                    2(a)(1)(i), -        T.C. 338 (1999),
                                                    2(a)(2)(i)           (specific economic
                                                                         benefit issue only)
                                                    specific econ
                                                    benefit:
                                                    § 1.901-
                                                    2(a)(2)(ii)

                                                    § 1.901-2A

2              Jan. 27      Specific economic
                            benefit, continued if
                            necessary

                            Types of creditable
                            taxes -section 901:
                            income tax in the       Section 901:
                            U.S. sense
                                                    §901(a), (b)

                                                    § 1.901-2(a)(1),
                                                    (a)(3), -2(b)

                                                    Texasgulf, Inc.,
                                    172 F.3d 209
                                    (1999)

                                    Exxon Corp. v.
                                    Commissioner,
                                    113 T.C. 338
                                    (1999)

                                    PP&L v.
                                    Comm’r, 135 TC
                                    No. 15 (2010)
3   Feb. 3   Section 901,
             continued if
             necessary

             903 “in lieu” taxes    Section 903:      Section 903:

             treaty creditability   § 903             PLR 200110021
                                                      (Bulgaria)
                                    § 1.903-1
                                                      re section 901,
             Further                                  903, and separate
             requirements for                         levy:
             creditability-                           TAM 200331001
                                    Treaty credits:
             Refund
                                    2006 US Model
             Subsidy                Treaty
                                      Art. 2, 23
              Subsidy/refund and    Technical
             foreign govt’l         Explan. of Art.
             entities               23

                                    Notice 2008-3     Refund and
             Soak-up tax            (Mexican IETU)    subsidy:

                                    Pekar v.
                                    Commissioner,     PNC Financial
                                    113 T.C. 158      Services Group,
                                    (1999)            Inc. v.
                                                      Commissioner, 503
                                    Refund and        F.3d 119 (D.C. Cir.
                                    subsidy:          2007) (subsidy,
                                    901(i)            treatment of
                                                      governmental
                                    Treas. Reg.       entity)
                                § 1.901-2(e)(2),
                                (e)(3)              Rev. Rul. 86-134
                                                    (Dutch)
                                Nissho Iwai
                                American Corp.   1994 FSA Lexis
                                v. Commissioner, 473 (NZ)
                                89 T.C. 765
                                (1987) (subsidy)

                                Amoco Corp. v.
                                Commissioner,
                                138 F.3d 1139
                                (7th Cir. 1998)
                                (refund, subsidy,
                                contracting with
                                governmental
                                entity)



                                Soak-up tax:

                                §1.901-2(c)
                                §1.903-1(b)(2)

                                Rev. Rul. 2003-8
                                 (Costa Rica)

Feb. 10   Soak-up tax,
          continued if
          necessary

          Compulsory            Compulsory          Compulsory
          payment               payment:            payment:

             -   current regs   Treas Reg.          TAM 200807015
             -   proposed       §1.901-2(a)(2)(i)   (just the
                 regs                               compulsory
                                Treas. Reg.         payment issue)
                                § 1.901-2(e)(5)

                                Prop. Treas. Reg.   CCA 200622044
                                § 1.901-2(e)(5)     (UK credit used to
                                                    reduce creditable
                                Notice 2007-95      tax) (only the
                                                    compulsory
                                      FSA 1998-293         payment issue)
                                      (Japanese
                                      competent
                                      authority)
                                                           CCA 200532044
                                      FSA 200049010        (determination of
                                      (Danish tax)         sub.'s country of
                                                           residence—
                                      Proctor &            exhaustion of
                                      Gamble v. U.S.,      administrative
                                      106 AFTR 2d          remedies) (just the
                                      2010-5311 (S.D.      compulsory
                                      Ohio 2010)           payment issue)

                                      CCA 200920051
                                      (Italian election)


5   Feb. 17   Legal liability         Legal liability:     Legal liability:
               - Current regs
               - Proposed regs        Treas. Reg.          Biddle, 302 U.S.
               - foreign              § 1.901-2(f)         573 (1938)
              consolidated
              regimes                 Prop. Treas. Reg.    Gleason Works v.
              - disregarded           § 1.901-2(f)         Commissioner, 58
              entities, hybrids and                        T.C. 464 (1972)
              reverse hybrids         [possible changes
                                      to proposed reg., PLR 200225032
              section 909             if those occur    (organschaft PLR)
                                      during the
                                      semester]

                                      Guardian
                                      Industries Corp.
                                      & Sub.’s v.
                                      United States,
                                      477 F.3d 1368
                                      (Fed. Cir. 2007),
                                      and lower
                                       court opinion:
                                      65 Fed. Cl. 50
                                      (2005)

                                      Arundel Corp. v.
                                      United States,
                                      102 F.Supp. 1019
                                    (1952)

                                    TAM 200807015

                                    Section 909:

                                    Section 909
                                    Notice 2010-92
                                    [possible future
                                    regs and/or
                                    notices, if issued
                                    during semester]

    Feb. 24    No class (Monday
               classes meet)
6   March 3    Legal liability      See reading listed
               (continued)          for class 5
                - topics from
                    Feb. 17 list,
                    continued

    March 10   No class (spring
               break)
7   March 17   Section 909          Partnerships:        Partnership reg.
               continued, if                             preamble, TD 9292
               necessary            Sections
                                    901(b)(5),
               partnerships         702(a)(6),
                                    703(b)(3)

                                    Treas. Reg. §
                                    1.704-
                                    1(b)(4)(viii)

                                    [Possible
                                    proposed
                                    regulations or
                                    other new
                                    guidance, if
                                    issued during the
                                    semester]
8   March 24   Section 902, the     sections 902, 78,    Brunswick
               indirect credit      960, 959             Corporation and
                                                         Subs., 100 TC 6
                                                         (1993)
                                                            U.S. v. Goodyear
                                                            Tire & Rubber Co.,
                                                            493 U.S. 132
                                                            (1942)

                                                            Vulcan Materials
                                                            Co. v.
                                                            Commissioner, 96
                                                            T.C. 410 (1991)

                                                            First Chicago NBD
                                                            Corp. v. Comm.,
                                                            135 F.3d 457 (7th
                                                            Cir. 1998)

                                                            Treas. Reg.
                                                            §1.367(b)-7
9   March 31   Section 902
               (continued, if
               necessary)

               Foreign tax credit      Foreign tax credit
               limitation issues-      limitation:        Basket transition:
               - Limitation fraction                      904(d)(2)(K)
               - Baskets               Section 904(a),
               - look-through          (c), (d), (k),     1.904-7T

               -carryovers             Treas. Reg. §§
                                       1.904-4T(a), (b),
                                       1.904-4(c)(1),
               -(if time allows)       (2), -4(e), -4(m),
               ofl,odl
                                       1.904-5T(a),(b),
                                       (i)(2),

                                       1.904-(a),(c),(g),
                                       (h), (i)


                                       Carryovers:
                                       Section 904(c)


                                       OFL, ODL:
                                       sections 904(f),
                                       904(g)
10   April 7    Limitation fraction   Sourcing and         Sourcing and 861
                continued:            section 861          allocation:
                -sourcing             allocation:
                -861 allocation                            US Joint
                                      Treas. Reg.          Committee on
                Anti-abuse rules-     §1.861-8(a)-(d);     Taxation,
                901(k), (l), (m)      1.861-8(f)(1)-(2),   Description of the
                                                           Chairman’s Mark
                                      Boeing v.            for the Conference
                                      Commissioner,        Committee on H.R.
                                      537 U.S. 437         4520 (AJCA)
                                      (2003) (Part II of   (October 4, 2004)
                                      opinion only)        (JCT description of
                                                           worldwide interest
                                      Anti-abuse rules:    apportionment)

                                      Section 901(k),
                                      (l), (m)

                                      Re section
                                      901(l):
                                      Notice 2010-65
                                                           Re section 901(l):
                                                           Notice 2005-90

11   April 14   Anti-abuse rules,     Anti-abuse rules,    Foreign tax credit
                cont’d:               cont’d:              generators:

                Economic              Economic             IRS LMSB
                substance             substance:           Directive on FTC
                                                           Generators (March
                Foreign tax credit    Section 7701(o)      11, 2008)
                generators
                                      Compaq               Preamble to 2008
                Lob articles          Computer Corp.       foreign tax credit
                                      v. Commissioner,     generator regs, TD
                                      277 F.3d 778         9416
                                      (5th Cir. 2006)
                                                           Notice 2004-20
                                      Notice 2004-19
                                                           previous anti-abuse
                                                           rules:
                                     Foreign tax credit Notice 98-5
                                     generators:
                                                        Concerns about
                                     Temp. Reg.         abusive
                                     §1.901-2T(e)(5)    transactions:

                                     Notice 2007-95     New York State
                                                        Bar report on
                                     LOB articles:      Regulation Section
                                                        1.901-2(f)(3) and
                                     U.S. Model         the
                                     Treaty, Article    Allocation of
                                     22, and Treasury   Foreign Taxes
                                     Department         Among Related
                                     Technical          Persons (April 4,
                                     Explanation of     2005)
                                     the U.S. Model
                                     Treaty regarding   Economic
                                     Article 22         substance:
                                                        TAM 200807015
                                                        (just issue 4, re
                                                        economic
                                                        substance)

                                                        ACM Partnership
                                                        v. Commissioner,
                                                        157 F.3d 231 (3rd
                                                        Cir 1998), and the
                                                        Tax Court opinion,
                                                        TC Memo 1997-
                                                        115


12   April 21   Anti-abuse rules,    Refunds and
                continued            changes to tax:

                Refunds and          Treas. Reg. §
                changes to tax (if   1.905-3T
                time permits)
                                     Section 905(b),
                Proof (if time       (c)
                permits)
                                     Proof:

                                     Treas. Reg. §
                                     1.905-1(a), -2
13   April 28   Review session

				
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