The IRS has issued final regulations on the base erosion and anti-abuse tax (BEAT). To limit profit-shifting, the Tax Cuts and Jobs Act (TCJA) added a new tax, the BEAT. The BEAT limits the ability of large U.S. corporations to shift profits from the United States by making deductible payments to their affiliates in low-tax countries. The final regs, issued Sept. 1, provide detailed guidance on how to compute certain BEAT calculations for groups of related taxpayers. They also contain rules permitting taxpayers to waive deductions for purposes of the BEAT, and additional guidance on partnerships and anti-abuse rules. Call or visit our website for more information! www.mjscpa.com/news/
