The IRS is granting relief to U.S. persons who own stock in certain foreign corporations. Revenue Procedure 2019-40 limits the inquiries required by U.S. persons to determine if certain foreign corporations are controlled foreign corporations (CFCs). It also allows certain unrelated minority U.S. shareholders to rely on specified financial statement information to calculate their subpart F and Global Intangible Low-Taxed Income (GILTI) inclusions and satisfy certain reporting requirements. The requirements concern certain CFCs if more detailed tax information is unavailable. Also, there’s penalty relief to taxpayers in specified circumstances. Related proposed regulations also were issued. Contact us for more information. www.mjscpa.com/news/
