Internal Revenue Bulletin 2019-43 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 2019–43
October 21, 2019
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
ADMINISTRATIVE
Rev. Proc. 2019-40, page 982.
The revenue procedure provides relief to taxpayers affected
by the repeal of section 958(b)(4) by the Tax Cuts and Jobs
Act.
INCOME TAX
REG-104223-18, page 989.
This document contains proposed regulations relating to the
modification of section 958(b) of the Internal Revenue Code
by the Tax Cuts and Jobs Act, which was enacted on De-
cember 22, 2017. The proposed regulations affect United
States persons that have ownership interests in or that make
or receive payments to or from certain foreign corporations.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
October 21, 2019 Bulletin No. 2019–43

Part III
26 CFR § 601.105: Examination of returns and
claims for refund, credit or abatement; determina-
tion of correct tax liability.
(Also: Part 1, §§ 951, 951A, 952, 957, 964, 965,
6038, 6662, 6664)
Rev. Proc. 2019-40
SECTION 1. PURPOSE
This revenue procedure generally pro-
vides guidance related to the repeal of
section 958(b)(4) of the Internal Revenue
Code (“Code”) to certain United States
persons within the meaning of section
7701(a)(30) (“U.S. persons”) that own
stock in certain foreign corporations.
Section 2 of this revenue procedure pro-
vides background on section 958. Sec-
tion 3 of this revenue procedure provides
definitions of terms used in this revenue
procedure. Section 4 of this revenue pro-
cedure provides a safe harbor for deter-
mining whether a foreign corporation is a
controlled foreign corporation within the
meaning of section 957 (“CFC”). Section
5 of this revenue procedure provides a
safe harbor for determining certain items,
including taxable income and earnings
and profits (“E&P”), of a CFC based on
alternative information (as defined in
section 3.01 of this revenue procedure).
Section 6 of this revenue procedure pro-
vides a safe harbor for determining cer-
tain items of a specified foreign corpora-
tion within the meaning of section 965(e)
and §1.965-1(f)(45) (“SFC”) based on
alternative information. Section 7 of this
revenue procedure addresses penalties
under sections 6038 and 6662. Section 8
of this revenue procedure describes mod-
ifications to be made with respect to filing
requirements for Form 5471, Information
Return of U.S. Persons with Respect to
Certain Foreign Corporations. Section
9 of this revenue procedure provides ex-
amples illustrating rules described in this
revenue procedure. Section 10 of this
revenue procedure provides applicability
dates. Section 11 of this revenue proce-
dure provides drafting information. The
Department of the Treasury (“Treasury
Department”) and the Internal Revenue
Service (“IRS”) expect to issue other
guidance related to certain other conse-
quences of the repeal of section 958(b)
(4) separately.
SECTION 2. BACKGROUND
Section 958 provides rules for deter-
mining direct, indirect, and constructive
stock ownership. Under section 958(a)(1),
stock is considered owned by a person if
it is owned directly or is owned indirect-
ly through certain entities under section
958(a)(2). Under section 958(b), section
318 (relating to constructive ownership of
stock) applies, with certain modifications,
to the extent that the effect is to treat any
U.S. person as a United States sharehold-
er within the meaning of section 951(b)
(“U.S. shareholder”) of a foreign corpora-
tion, to treat a person as a related person
within the meaning of section 954(d)(3),
to treat the stock of a domestic corpora-
tion as owned by a U.S. shareholder of a
CFC for purposes of section 956(c)(2), or
to treat a foreign corporation as a CFC.
As in effect before repeal, section
958(b)(4) provided that subparagraphs
(A), (B), and (C) of section 318(a)(3)
(providing for downward attribution)
were not to be applied so as to consider a
U.S. person as owning stock owned by a
person who is not a U.S. person (“foreign
person”). Effective for the last taxable
year of foreign corporations beginning be-
fore January 1, 2018, and each subsequent
year of the foreign corporations, and for
the taxable years of U.S. shareholders in
which or with which such taxable years
of the foreign corporations end, section
958(b)(4) was repealed by section 14213
of the Tax Cuts and Jobs Act, Pub. L. 115-
97 (2017). As a result of this repeal, stock
of a foreign corporation owned by a for-
eign person can be attributed to a U.S. per-
son under section 318(a)(3) for purposes
of determining whether the U.S. person or
another U.S. person is a U.S. shareholder
of the foreign corporation and, therefore,
whether the foreign corporation is a CFC.
As a result, U.S. persons that were not pre-
viously treated as U.S. shareholders may
be treated as U.S. shareholders, and for-
eign corporations that were not previously
treated as CFCs may be treated as CFCs.
The Treasury Department and the IRS
are aware that, in certain circumstanc-
es, taxpayers are required to include in
gross income amounts under sections 951
(“subpart F inclusion amounts”) and 951A
(“GILTI inclusion amounts”) attributable
to, and report amounts with respect to,
foreign corporations that are CFCs solely
because of the repeal of section 958(b)(4),
even though those taxpayers may have
limited ability to determine whether such
foreign corporations are CFCs and to ob-
tain the information necessary to accurate-
ly determine these amounts.
SECTION 3. DEFINITIONS
For purposes of this revenue proce-
dure, the following terms have the follow-
ing meanings:
.01 Alternative information
(a) In general
The term “alternative information”
means, with respect to a foreign corpora-
tion, information described in paragraph
(i), (ii), (iii), (iv), (v), (vi), (vii), or (viii) of
this section 3.01(a), as applicable, subject
to the adjustments described in section
3.01(b) of this revenue procedure. Infor-
mation described in a paragraph qualifies
as alternative information only if informa-
tion described in any preceding paragraph
is not readily available. For example, in-
formation described in paragraph (iii) of
this section 3.01(a) qualifies as alternative
information only if information described
in paragraph (i) or (ii) of this section
3.01(a) is not readily available.
(i) Audited separate-entity financial
statements of the foreign corporation
that are prepared in accordance with U.S.
generally accepted accounting principles
(“U.S. GAAP”).
(ii) Audited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of international
financial reporting standards (“IFRS”).
(iii) Audited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of the generally
accepted accounting principles of the ju-
risdiction in which the foreign corporation
is organized (“local-country GAAP”).
(iv) Unaudited separate-entity finan-
cial statements of the foreign corporation
October 21, 2019 982 Bulletin No. 2019–43

that are prepared in accordance with U.S.
GAAP.
(v) Unaudited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of IFRS.
(vi) Unaudited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of local-country
GAAP.
(vii) Separate-entity records used by
the foreign corporation for tax reporting.
(viii) Separate-entity records used by
the foreign corporation for internal man-
agement controls or regulatory or other
similar purposes.
(b) Adjustments when the basis of in-
formation changes from a prior taxable
year
If an amount has been determined by
a U.S. shareholder on the basis of infor-
mation described in a paragraph in section
3.01(a) with respect to a foreign corpo-
ration for a taxable year of the foreign
corporation, and another amount is subse-
quently determined by the U.S. sharehold-
er on the basis of information described
in a different paragraph in section 3.01(a)
or on the basis of information satisfying
the requirements of §1.952-2(a), (b), and
(c)(2) and section 964 and the regulations
thereunder with respect to a different tax-
able year of the foreign corporation, then
as a condition of the IRS accepting the use
of alternative information under this rev-
enue procedure, the U.S. shareholder will
use reasonable efforts to make any adjust-
ments necessary in the subsequent taxable
year to ensure that the change in type of
information does not cause any material
items to be duplicated or not included in
any taxable year of the foreign corpora-
tion.
02 Constructive U.S. shareholder
The term “constructive U.S. sharehold-
er” means, with respect to a foreign cor-
poration, a U.S. shareholder with respect
to the foreign corporation that is not a sec-
tion 958(a) U.S. shareholder with respect
to the foreign corporation.
.03 Foreign-controlled CFC
The term “foreign-controlled CFC”
means a foreign corporation that is a CFC
but that would not be a CFC, if the de-
termination were made without applying
subparagraphs (A), (B), and (C) of section
318(a)(3) so as to consider a U.S. person
as owning stock which is owned by a for-
eign person.
.04 Readily available
The term “readily available” means,
with respect to a person, information for a
foreign corporation that, as of the due date
(taking into account extensions, if any, or
any additional time that would have been
granted if the person had made an exten-
sion request) of the person’s return:
(a) Is publicly available;
(b) In the case of a direct or indirect in-
vestment in the foreign corporation
that is completed on or before Octo-
ber 1, 2019, or subject to a binding
contract as of October 1, 2019, or an
acquisition of stock of the foreign
corporation from a person that is not
the foreign corporation or a related
person with respect to the foreign cor-
poration, the person has the legal or
contractual right to obtain and is able
to obtain using reasonable efforts; or
(c) In the case of a direct or indirect in-
vestment in, or acquisition of stock
of, the foreign corporation that is not
described in paragraph (b) of this
section 3.04, the foreign corpora-
tion is not prohibited from providing
to the person under the laws of the
jurisdiction(s) to which the foreign
corporation is subject and the person
is able to obtain using reasonable ef-
forts. For purposes of this paragraph
(c), reasonable efforts include a good
faith attempt to obtain the right to re-
ceive relevant information as part of
the acquisition or investment agree-
ment(s).
.05 Related constructive U.S. shareholder
The term “related constructive U.S.
shareholder” means, with respect to a
foreign corporation, a constructive U.S.
shareholder that is a related person with
respect to the foreign corporation.
.06 Related person
The term “related person” means,
with respect to a person, another person
described in section 954(d)(3), substitut-
ing the first-mentioned person for “con-
trolled foreign corporation” each place it
appears.
.07 Related section 958(a) U.S.
shareholder
The term “related section 958(a) U.S.
shareholder” means, with respect to a for-
eign corporation, a section 958(a) U.S.
shareholder with respect to the foreign
corporation, if such section 958(a) U.S.
shareholder is a related person with re-
spect to the foreign corporation.
.08 Section 957 ownership requirements
The term “section 957 ownership re-
quirements” means, with respect to a for-
eign corporation and any given day of a
taxable year of the foreign corporation,
stock ownership described in section 957
that would cause the foreign corporation
to be a CFC on such day.
.09 Section 958(a) U.S. shareholder
The term “section 958(a) U.S. share-
holder” means, with respect to a foreign
corporation, a U.S. shareholder with re-
spect to the foreign corporation that owns
(within the meaning of section 958(a))
stock of the foreign corporation.
.10 Separate-entity financial statement
and separate-entity records
The terms “separate-entity financial
statements” and “separate-entity records”
mean, with respect to a foreign corpora-
tion, financial statements or records, as
applicable, reflecting the balance sheet or
operations solely of the foreign corpora-
tion. Notwithstanding the prior sentence,
financial statements or records of a for-
eign corporation qualify as separate-entity
financial statements or separate-entity re-
cords, as applicable, if:
(a) In cases in which a foreign corpo-
ration owns an equity interest in an entity
that is a partnership or any other entity
(whether domestic or foreign) other than
a corporation to the extent that the income
or deductions of the entity are included in
the income of one or more direct or indi-
rect owners or beneficiaries of the entity
Bulletin No. 2019–43 983 October 21, 2019

October 21, 2019 984 Bulletin No. 2019–43
(such an entity, a “pass-through entity”),
including through other pass-through en-
tities, the information from the foreign
corporation’s financial statements or
records is adjusted to take into account
the foreign corporation’s proportionate
share of the balance sheet and operations
of the pass-through entity (based on the
separate-entity financial statements or
separate-entity records of the entity, de-
termined as if such entity were a foreign
corporation) to the extent these items are
not already reflected in the foreign corpo-
ration’s financial statements or records,
as applicable; and
(b) In cases in which a foreign corpo-
ration directly or indirectly owns an inter-
est in an entity that is not a pass-through
entity whose items are included in the
information on the foreign corporation’s
financial statements or records (such as an
equity interest in a reverse hybrid entity
(as defined in §1.909-2(b)(1)(iv))), the in-
formation from the foreign corporation’s
financial statements or records is adjusted
so that the information solely reflects the
balance sheet and operations of the for-
eign corporation, subject to paragraph (a)
of this section 3.10.
.11 Unrelated constructive U.S.
shareholder
The term “unrelated constructive U.S.
shareholder” means, with respect to a
foreign corporation, a constructive U.S.
shareholder with respect to the foreign
corporation that is not a related construc-
tive U.S. shareholder with respect to the
foreign corporation.
.12 Unrelated section 958(a) U.S.
shareholder
The term “unrelated section 958(a)
U.S. shareholder” means, with respect to a
foreign corporation, a section 958(a) U.S.
shareholder with respect to the foreign
corporation that is not a related section
958(a) U.S. shareholder with respect to
the foreign corporation.
.13 U.S.-controlled CFC
The term “U.S.-controlled CFC” means
a foreign corporation that is a CFC other
than a foreign-controlled CFC.
SECTION 4. SAFE HARBOR FOR
DETERMINING CFC STATUS
.01 Background
In certain circumstances, as a result
of the repeal of section 958(b)(4), a U.S.
shareholder with respect to a foreign cor-
poration may not be able to determine that
the foreign corporation is a CFC without
knowledge regarding the investments
of unrelated persons. In such a case, the
Treasury Department and the IRS recog-
nize that it may not be possible for the
U.S. shareholder to obtain information
necessary to determine whether the for-
eign corporation is a CFC.
.02 Safe harbor
(a) In general
For the reasons discussed in section
4.01 of this revenue procedure, the IRS
will accept a U.S. person’s determination
that a foreign corporation does not meet
the section 957 ownership requirements
and, therefore, that the foreign corporation
is not a CFC with respect to the U.S. per-
son if the conditions described in section
4.02(b) of this revenue procedure are sat-
isfied. For the avoidance of doubt, if a U.S.
person directly or indirectly owns (within
the meaning of section 958(a)) stock in a
foreign corporation, and a foreign person
that is not a related person with respect to
the U.S. person also directly or indirect-
ly owns (within the meaning of section
958(a)) stock in the foreign corporation,
the U.S. person’s failure to inquire of the
foreign person whether the foreign person
owns directly or indirectly (determined
under the principles of section 958(a)(2))
or constructively owns (determined under
the principles of section 958(b)) stock of,
or an interest in, a domestic entity will not
preclude reliance on the safe harbor de-
scribed in this section 4.02. The safe har-
bor set forth in section 4.02 does not apply
to a foreign corporation that is a U.S.-con-
trolled CFC.
(b) Conditions
(i) The U.S. person does not have ac-
tual knowledge, statements received, and/
or reliable publicly available information
sufficient for the U.S. person to determine
that the section 957 ownership require-
ments are met. For purposes of applying
this condition, actual knowledge, state-
ments received, and/or reliable publicly
available information as of a given date
shall be treated as true for all subsequent
dates, unless subsequent information re-
buts the original information.
(ii) If the U.S. person directly owns
stock of, or an interest in, a foreign en-
tity (“top-tier entity”), the U.S. person
inquires of the top-tier entity whether it
meets the section 957 ownership require-
ments, whether, how, and to what extent
such top-tier entity directly or indirect-
ly owns (within the meaning of section
958(a)) stock of one or more foreign cor-
porations, and whether, how, and to what
extent such top-tier entity owns directly
or indirectly (determined under the prin-
ciples of section 958(a)(2)) stock of, or an
interest in, one or more domestic entities.
SECTION 5. GENERAL
SAFE HARBOR FOR USING
ALTERNATIVE INFORMATION
.01 Background
In order to determine a subpart F inclu-
sion amount or GILTI inclusion amount of
a U.S. shareholder with respect to a CFC,
the U.S. shareholder needs to determine
the gross and taxable income, as well as
the qualified business asset investment
(within the meaning of section 951A(d))
and specified interest expense (as defined
in §1.951A-1(c)(3)(iii)), of the CFC. In
addition, in order to determine whether
the E&P limitation in section 952(c)(1)
(A) on subpart F income applies, the U.S.
shareholder needs to determine the E&P
of the CFC. Under §1.952-2(a) and (b),
the gross and taxable income of a foreign
corporation are generally determined by
treating the foreign corporation as a do-
mestic corporation and by applying the
principles of sections 61 and 63 and the
regulations thereunder. Under section 964
and the regulations thereunder, the E&P
of a foreign corporation are determined
according to rules substantially similar to
those applicable to domestic corporations.
Under §§1.952-2(c)(2) and 1.964-1(a)(1),
the determinations of income and E&P
of a foreign corporation are made by first
making adjustments to the foreign corpo-
ration’s books of account to conform with
U.S. GAAP, and then making further ad-

Bulletin No. 2019–43 985 October 21, 2019
justments to conform such statements to
U.S. tax accounting standards.
However, the Treasury Department and
the IRS recognize that certain U.S. share-
holders may be unable to obtain informa-
tion necessary for the U.S. shareholder to
calculate a subpart F inclusion amount or
GILTI inclusion amount in the case of a
foreign corporation that is a foreign-con-
trolled CFC or report amounts on Form
5471 consistent with the requirements in
§1.952-2 and section 964 and the regula-
tions thereunder. Accordingly, the Treasury
Department and the IRS believe that it is
reasonable for taxpayers to choose to use
alternative information for determining a
subpart F inclusion amount and GILTI in-
clusion amount or related recordkeeping or
reporting on a Form 5471 with respect to a
foreign-controlled CFC in the circumstanc-
es described in this section 5. The IRS will
accept the use of alternative information by
a taxpayer in the circumstances described
in section 5.02 of this revenue procedure.
However, nothing in this revenue procedure
affects the application of the requirements
for determining the foreign income taxes
paid or accrued by a foreign-controlled
CFC for purposes of applying section 960
(relating to deemed paid foreign income
taxes). Accordingly, a taxpayer that uses
alternative information must determine if
amounts paid or accrued are “foreign in-
come taxes,” as defined under §1.960-1(b)
(5) and satisfy the evidentiary and other re-
quirements of §1.905-2.
.02 Safe harbor
In the case of a foreign-controlled CFC
with respect to which there is no related
section 958(a) U.S. shareholder, if in-
formation satisfying the requirements of
§1.952-2(a), (b), and (c)(2) and section
964 and the regulations thereunder is not
readily available to an unrelated section
958(a) U.S. shareholder with respect to
the foreign-controlled CFC, a subpart F
inclusion amount or a GILTI inclusion
amount or an amount in a record required
to be maintained under section 964(c),
§1.964-3, or §1.964-4 may be determined
by the unrelated section 958(a) U.S. share-
holder on the basis of alternative informa-
tion (without adjustments other than those
described in sections 3.01(b) and 3.10 of
this revenue procedure) with respect to
the foreign-controlled CFC. However, the
preceding sentence does not apply for pur-
poses of determining section 965 amounts
(as defined in section 6.01 of this revenue
procedure). See section 6 of this revenue
procedure for a safe harbor for determin-
ing section 965 amounts.
In the case of a foreign-controlled CFC
with respect to which there is no related
section 958(a) U.S. shareholder, the Trea-
sury Department and the IRS intend to
revise the instructions for Form 5471 to
provide that if information satisfying the
requirements of §1.952-2(a), (b), and (c)
(2) and section 964 and the regulations
thereunder is not readily available to an
unrelated section 958(a) U.S. shareholder
or an unrelated constructive U.S. share-
holder with respect to the foreign-con-
trolled CFC, an amount reported on a
Form 5471 may be determined by the un-
related section 958(a) U.S. shareholder or
the unrelated constructive U.S. sharehold-
er, as applicable, on the basis of alterna-
tive information (without adjustments oth-
er than those described in sections 3.01(b)
and 3.10 of this revenue procedure) with
respect to the foreign-controlled CFC.
SECTION 6. SAFE HARBOR
FOR USING ALTERNATIVE
INFORMATION FOR DETERMINING
SECTION 965 AMOUNTS
.01 Background
The Treasury Department and the IRS
recognize that certain U.S. shareholders
may have been unable to obtain informa-
tion necessary for the U.S. shareholder to
calculate an amount included under sec-
tion 951 by reason of section 965 or a de-
duction under section 965(c) (each a “sec-
tion 965 amount”) in the case of certain
SFCs consistent with the requirements
of section 964 and the regulations there-
under and thus may have used alternative
information. Accordingly, the Treasury
Department and the IRS believe that it is
reasonable in such circumstances for such
taxpayers to use an approach consistent
with the approach outlined in section 5
of this revenue procedure for purposes of
the determination of section 965 amounts.
Thus, the IRS will accept the use of alter-
native information by a taxpayer in the
circumstances described in section 6.02 of
this revenue procedure. However, nothing
in this revenue procedure affects the appli-
cation of the requirements for determining
the foreign income taxes paid or accrued
by an SFC for purposes of applying sec-
tions 902 and 960 (as in effect on Decem-
ber 21, 2017) for taxable years of SFCs
that begin before January 1, 2019. Ac-
cordingly, a taxpayer that uses alternative
information must determine if amounts
paid or accrued are “foreign income tax-
es,” as provided under sections 902 and
960 (as in effect on December 21, 2017)
and applicable regulations, and satisfy
the evidentiary and other requirements of
§1.905-2, and the extent to which a credit
is disallowed for such amounts (see, for
example, section 901(k)(1), (l), and (m)).
.02 Safe harbor
In the case of an SFC, other than either
a foreign-controlled CFC with respect to
which there is a related section 958(a) U.S.
shareholder or a U.S.-controlled CFC, if
information satisfying the requirements
of §1.952-2(a), (b), and (c)(2) and section
964 and the regulations thereunder is not
readily available to an unrelated section
958(a) U.S. shareholder with respect to
the SFC, a section 965 amount may be de-
termined by the section 958(a) U.S. share-
holder on the basis of alternative informa-
tion (without adjustments other than those
described in sections 3.01(b) and 3.10 of
this revenue procedure) with respect to
the SFC, provided the section 958(a) U.S.
shareholder reports such amount on a re-
turn both due and filed before October 1,
2019, or a return both due and filed after
October 1, 2019.
In the case of an SFC, other than ei-
ther a foreign-controlled CFC with respect
to which there is a related section 958(a)
U.S. shareholder or a U.S.-controlled
CFC, the Treasury Department and the
IRS intend to revise the instructions for
Form 5471 to provide that if information
satisfying the requirements of section
964 and the regulations thereunder is not
readily available to an unrelated section
958(a) U.S. shareholder or an unrelated
constructive U.S. shareholder with respect
to the SFC, an amount reported on a Form
5471 may be determined by the unrelat-
ed section 958(a) U.S. shareholder or the
unrelated constructive U.S. shareholder,

October 21, 2019 986 Bulletin No. 2019–43
as applicable, on the basis of alternative
information (without adjustments other
than those described in sections 3.01(b)
and 3.10 of this revenue procedure) with
respect to the SFC.
SECTION 7. INAPPLICABILITY
OF PENALTIES UNDER SECTIONS
6038 AND 6662
.01 Background
Under section 6038(b) and (c), penal-
ties can be imposed if any person fails to
timely furnish information required under
section 6038(a)(1), which information
is required to be reported on Form 5471.
Under section 6038(c)(4)(B), for purpos-
es of determining such penalties, the time
for furnishing such information is treated
as not earlier than the last day on which
reasonable cause existed for failure to
furnish such information. Under section
6662, penalties can be imposed on any
portion of an underpayment (as defined
in section 6664(a)) of tax required to be
shown on a return that is attributable to
one of the items listed in section 6662(b),
which include negligence or disregard of
rules or regulations and a substantial un-
derstatement of income tax. Under section
6664(c)(1), penalties will generally not be
imposed under section 6662 with respect
to any portion of an underpayment if it is
shown that there was reasonable cause for
such portion and that the taxpayer acted
in good faith with respect to such portion.
.02 Inapplicability
Taking into account that the IRS will
accept taxpayers’ positions based on sec-
tions 4.02, 5.02, and 6.02 of this revenue
procedure and the availability of reason-
able cause relief, penalties under sections
6038 and 6662 will not be applied to the
extent such penalties would be attribut-
able to:
(a) A U.S. person determining that a for-
eign corporation does not meet the
section 957 ownership requirements
consistent with section 4.02 of this
revenue procedure,
(b) A U.S. person determining a subpart
F inclusion amount or GILTI inclu-
sion amount, an amount in a record
required to be maintained under sec-
tion 964(c), §1.964-3, or §1.964-4, or
an amount reported on a Form 5471
on the basis of alternative information
consistent with section 5.02 of this
revenue procedure, or
(c) A U.S. person determining a section
965 amount on the basis of alternative
information consistent with section
6.02 of this revenue procedure.
SECTION 8. FORM 5471 FILING
REQUIREMENTS
.01 Background
Pursuant to section 6038(a)(4), the IRS
may require any U.S. person treated as a
U.S. shareholder of a CFC to file an infor-
mation return on Form 5471 with respect
to its ownership in such CFC. In section
5.02 of Notice 2018-13, 2018-6 I.R.B.
341, the Treasury Department and the IRS
announced that the IRS intended to amend
the instructions for Form 5471 to provide
an exception from Category 5 filing for a
U.S. person that is a U.S. shareholder with
respect to a CFC if no U.S. shareholder
(including such U.S. person) owns, with-
in the meaning of section 958(a), stock in
such CFC, and the foreign corporation is
a CFC solely because such U.S. person is
considered to own the stock of the CFC
owned by a foreign person under section
318(a)(3). Section 6 of Notice 2018-13
and section 7 of Notice 2018-26, 2018-16
I.R.B. 480, provided that taxpayers may
rely on this exception with respect to the
last taxable year of a foreign corporation
beginning before January 1, 2018, and
each subsequent year of the foreign cor-
poration, and for the taxable years of a
U.S. shareholder in which or with which
these taxable years of the foreign corpora-
tion end. Accordingly, the instructions for
Form 5471 (rev. December 2018) provide
that a Category 1 or 5 filer does not have
to file a Form 5471 if no U.S. sharehold-
er (including the filer) owns, within the
meaning of section 958(a), stock in the
foreign corporation, and the foreign cor-
poration is a specified foreign corporation
or CFC solely because one or more U.S.
persons is considered to own the stock of
the foreign corporation owned by a for-
eign person under section 318(a)(3).
However, the Treasury Department and
the IRS understand that, even as modified,
the Form 5471 filing requirements may re-
sult in a significant undertaking for certain
U.S. shareholders with limited access to
information with respect to a foreign-con-
trolled CFC. Accordingly, the Treasury
Department and the IRS intend to further
limit the Form 5471 filing requirements,
as described in sections 8.02, 8.03, and
8.04 of this revenue procedure.
.02 Unrelated section 958(a) U.S.
shareholders
The IRS intends to revise the instruc-
tions for Form 5471 to provide that a Cat-
egory 5 filer is generally only required to
file the identifying information on page 1
of Form 5471 above Schedule A, as well
as Schedule I, Schedule I-1, and Sched-
ule P, with respect to a foreign-controlled
CFC if the Category 5 filer is an unrelat-
ed section 958(a) U.S. shareholder with
respect to the foreign-controlled CFC. If,
however, the Category 5 filer claims un-
der section 960 to be deemed to have paid
foreign income taxes of the foreign-con-
trolled CFC for the Category 5 filer’s
taxable year, Schedule E and Schedule
E-1 are also required to be filed. There-
fore, a Category 5 filer that is an unrelat-
ed section 958(a) U.S. shareholder with
respect to a foreign-controlled CFC will
no longer have to file Part II of Schedule
B, Schedule G, Schedule H, or Schedule
J with respect to the foreign-controlled
CFC.
.03 Related constructive U.S.
shareholders
The IRS intends to revise the instruc-
tions for Form 5471 to provide that a Cat-
egory 5 filer is generally only required to
file the identifying information on page 1
of Form 5471 above Schedule A, as well as
Part II of Schedule B, Schedule E, Sched-
ule G, and Schedule I-1, with respect to a
foreign-controlled CFC if the Category 5
filer is a related constructive U.S. share-
holder with respect to the foreign-con-
trolled CFC. Therefore, a Category 5 filer
that is a related constructive U.S. share-
holder with respect to a foreign-controlled
CFC will no longer have to file Schedule
E-1, Schedule H, Schedule I, Schedule
J, or Schedule P with respect to the for-
eign-controlled CFC.

Bulletin No. 2019–43 987 October 21, 2019
.04 Unrelated constructive U.S.
shareholders
The IRS intends to revise the instruc-
tions for Form 5471 to provide that a Cat-
egory 5 filer is not required to file a Form
5471 with respect to a foreign-controlled
CFC if it is an unrelated constructive
U.S. shareholder with respect to the for-
eign-controlled CFC.
SECTION 9. EXAMPLES
Example 1: Definition of unrelated section
958(a) U.S. shareholder and related constructive
U.S. shareholder—(i) Facts. USI, a citizen of the
United States, owns 10% of the single class of stock
of FP, a foreign corporation. The remaining 90% of
the stock of FP is owned by a foreign individual that
is unrelated to USI. FP owns 100% of the single class
of stock of FS1, a foreign corporation. FS1 owns
100% of the single class of stock of USS, a domestic
corporation, and 100% of the single class of stock of
FS2, a foreign corporation
(ii) Analysis—(a) USS as related constructive
U.S. shareholder. Because FS1 owns 50% or more
in value of the stock in USS, USS is considered to
own, pursuant to section 958(b) and section 318(a)
(3)(C), the 100% of the single class of stock of FS2
owned by FS1. Accordingly, USS is a U.S. share-
holder with respect to FS2. Because USS does not
own (within the meaning of section 958(a)) any
stock of FS2, USS is not a section 958(a) U.S.
shareholder with respect to FS2 within the meaning
of section 3.09 of this revenue procedure. Accord-
ingly, USS is a constructive U.S. shareholder with
respect to FS2 within the meaning of section 3.02
of this revenue procedure. Because USS is a relat-
ed person with respect to FS2 within the meaning
of section 3.06 of this revenue procedure, USS is a
related constructive U.S. shareholder with respect
to FS2 within the meaning of section 3.05 of this
revenue procedure.
(b) FS2 as a foreign-controlled CFC. Because
more than 50% of the single class of stock of FS2
is considered owned under section 958(b) by USS, a
U.S. shareholder with respect to FS2, FS2 is a CFC.
If, however, section 318(a)(3)(C) did not apply to
treat USS as owning the FS2 stock owned by FS1,
FS2 would not be a CFC, because the only stock of
FS2 owned (within the meaning of section 958(a))
or considered owned under section 958(b) by U.S.
shareholders would be the 10% of the FS2 stock
owned (within the meaning of section 958(a)) by
USI. Accordingly, FS2 is a foreign-controlled CFC
within the meaning of section 3.03 of this revenue
procedure.
(c) USI as an unrelated section 958(a) U.S.
shareholder. Because USI owns (within the meaning
of section 958(a)) 10% of the stock of FS2, USI is a
section 958(a) U.S. shareholder with respect to FS2
within the meaning of section 3.09 of this revenue
procedure. Because USI is not a related person with
respect to FS2 within the meaning of section 3.06 of
this revenue procedure, USI is an unrelated section
958(a) U.S. shareholder with respect to FS2 within
the meaning of section 3.12 of this revenue proce-
dure.
Example 2: Definition of related section 958(a)
U.S. shareholder—(i) Facts. The facts are the same
as in Example 1 of this section 9, except that USS
owns 1% of the single class of stock of FS2 and FS1
owns 99%.
(ii) Analysis. The analysis is the same as in Ex-
ample 1 of this section 9, except that because USS
owns (within the meaning of section 958(a)) 1% of
the single class of stock of FS2, it is a section 958(a)
U.S. shareholder with respect to FS2 within the
meaning of section 3.09 of this revenue procedure
and not a constructive U.S. shareholder within the
meaning of section 3.02 of this revenue procedure.
Because USS is a related person with respect to FS2
within the meaning of section 3.06 of this revenue
procedure, USS is a related section 958(a) U.S.
shareholder with respect to FS2 within the meaning
of section 3.07 of this revenue procedure.
Example 3: Definition of unrelated constructive
U.S. shareholder—(i) Facts. In 2020, USP, a domes-
tic corporation, and FP, a foreign corporation, invest
in FJV, a newly formed foreign corporation. USP re-
ceives 10% of the single class of stock of FJV, and
FP receives the remaining 90% of the stock of FJV.
FP is not a related person with respect to USP. FP has
no U.S. shareholders. FP owns 5% of the interests in
a domestic partnership, DPS, the remainder of the
interests in which are held by persons unrelated to
USP and FP.
(ii) Analysis—(a) DPS as an unrelated construc-
tive U.S. shareholder. Because FP is a partner in DPS,
DPS is considered to own, pursuant to section 958(b)
and section 318(a)(3)(A), the 90% of the single class
of stock of FJV owned by FP. Accordingly, DPS is a
U.S. shareholder with respect to FJV. Because DPS
does not own (within the meaning of section 958(a))
any stock of FJV, DPS is not a section 958(a) U.S.
shareholder with respect to FJV within the meaning
of section 3.09 of this revenue procedure. Accord-
ingly, DPS is a constructive U.S. shareholder with
respect to FJV within the meaning of section 3.02
of this revenue procedure. Because DPS is not a re-
lated person with respect to FJV within the meaning
of section 3.06 of this revenue procedure, relying
on §1.954-1(f)(2)(iv), as proposed to be revised at
84 FR 22751, DPS is an unrelated constructive U.S.
shareholder with respect to FJV within the meaning
of section 3.11 of this revenue procedure.
(b) FJV as a foreign-controlled CFC. Because
more than 50% of the single class of stock of FJV
is considered owned under section 958(b) by DPS, a
U.S. shareholder with respect to FJV, FJV is a CFC.
If, however, section 318(a)(3)(A) did not apply to
treat DPS as owning the FJV stock owned by FP,
FJV would not be a CFC, because the only stock of
FJV owned (within the meaning of section 958(a))
or considered owned under section 958(b) by U.S.
shareholders would be the 10% of the FJV stock
owned by USP. Accordingly, FJV is a foreign-con-
trolled CFC within the meaning of section 3.03 of
this revenue procedure.
(c) USP as an unrelated section 958(a) U.S.
shareholder. Because USP owns (within the mean-
ing of section 958(a)) 10% of the stock of FJV, USP
is a section 958(a) U.S. shareholder with respect to
FJV within the meaning of section 3.09 of this reve-
nue procedure. Because USP is not a related person
with respect to FJV within the meaning of section
3.06 of this revenue procedure, USP is an unrelated
section 958(a) U.S. shareholder with respect to FJV
within the meaning of section 3.12 of this revenue
procedure.
Example 4: U.S. shareholder relies on section
4.02 to determine whether foreign corporation meets
the section 957 ownership requirements—(i) Facts.
The facts are the same as in Example 3 of this section
9. USP inquired of FJV whether FJV met the section
957 ownership requirements, and FJV did not report
that it met the section 957 ownership requirements.
There is no reliable publicly available information
that would indicate that FJV is a CFC. USP has not
received a statement indicating that FJV is a CFC.
Furthermore, after making the inquiry of FJV, USP
does not know that FJV is a CFC.
(ii) Analysis. Pursuant to section 4.02 of this rev-
enue procedure, because FJV is not a U.S.-controlled
CFC and FP is not a related person with respect to
USP within the meaning of section 3.06 of this rev-
enue procedure, for purposes of determining if FJV
meets the section 957 ownership requirements, USP
may rely on the safe harbor described in section 4.02
of this revenue procedure without inquiring of FP
whether FP owns directly or indirectly (determined
under the principles of section 958(a)(2)) or con-
structively owns (determined under the principles of
section 958(b)) stock of, or an interest in, a domestic
entity. Because there is no reliable publicly available
information that would indicate that FJV is a CFC,
USP has not received a statement indicating that FJV
is a CFC, and, after making an inquiry of FJV, USP
does not know that FJV is a CFC, USP may treat
FJV as not meeting the section 957 ownership re-
quirements.
SECTION 10. APPLICABILITY
DATES
Unless otherwise provided in future
guidance, taxpayers may apply sections 4,
5, 6, and 7 of this revenue procedure with
respect to the last taxable year of a foreign
corporation beginning before January 1,
2018, and each subsequent taxable year
of such foreign corporation, and with re-
spect to the taxable years of United States
shareholders in which or with which such
taxable years of such foreign corporation
end.
Taxpayers may apply the rules de-
scribed in sections 5, 6, and 8 of this rev-
enue procedure, before the instructions to
the Form 5471 are modified, for the last
taxable year of a foreign corporation be-
ginning before January 1, 2018, and each
subsequent taxable year of the foreign
corporation, and with respect to the tax-
able years of U.S. shareholders in which
or with which such taxable years of the
foreign corporation end.

October 21, 2019 988 Bulletin No. 2019–43
The Treasury Department and the IRS
may update the safe harbor for alternative
information or the definition of “readily
available” in future guidance as needed to
ensure adequate tax compliance. Any such
updates would be prospective.
SECTION 11. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Christina G. Daniels of the
Office of Associate Chief Counsel (Inter-
national). For further information regard-
ing this revenue procedure, contact Ms.
Daniels at (202) 317-6934 (not a toll free
number).

Bulletin No. 2019–43 989 October 21, 2019
Part III
Notice of Proposed
Rulemaking
Ownership Attribution
Under Section 958
Including For Purposes
of Determining Status
as Controlled Foreign
Corporation or United
States Shareholder
REG-104223-18
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains
proposed regulations relating to the mod-
ification of section 958(b) of the Internal
Revenue Code (“Code”) by the Tax Cuts
and Jobs Act, which was enacted on De-
cember 22, 2017. The proposed regula-
tions affect United States persons that
have ownership interests in or that make
or receive payments to or from certain for-
eign corporations.
DATES: Written or electronic comments
and requests for a public hearing must be
received by December 2, 2019.
ADDRESSES: Send electronic submis-
sions via the Federal eRulemaking Por-
tal at www.regulations.gov (indicate IRS
and REG-104223-18) by following the
online instructions for submitting com-
ments. Once submitted to the Federal
eRulemaking Portal, comments cannot be
edited or withdrawn. The Department of
the Treasury (the “Treasury Department”)
and the IRS will publish for public avail-
ability any comment received to its public
docket, whether submitted electronically
or in hard copy. Send hard copy submis-
sions to: CC:PA:LPD:PR (REG-104223-
18), Room 5203, Internal Revenue Ser-
vice, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may
be hand delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m. to
CC:PA:LPD:PR (REG-104223-18), Cou-
rier’s Desk, Internal Revenue Service,
1111 Constitution Avenue, NW., Washing-
ton, DC 20224.
FOR FURTHER INFORMATION CON-
TACT: Concerning the proposed regu-
lations, Jorge M. Oben, (202) 317-6934;
concerning submissions of comments
and requests for a public hearing, Regina
Johnson at (202) 317-6901 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
Section 958 provides rules for deter-
mining direct, indirect, and constructive
stock ownership. Under section 958(a)(1),
stock is considered owned by a person if
it is owned directly or is owned indirect-
ly through certain foreign entities under
section 958(a)(2). Under section 958(b),
section 318 applies, with certain modifi-
cations, to the extent that the effect is to
treat any United States person as a Unit-
ed States shareholder within the meaning
of section 951(b) (“U.S. shareholder”) of
a foreign corporation, to treat a person as
a related person within the meaning of
section 954(d)(3), to treat the stock of a
domestic corporation as owned by a U.S.
shareholder of a controlled foreign cor-
poration (“CFC”) for purposes of section
956(c)(2), or to treat a foreign corporation
as a CFC under section 957.
Section 318 provides rules that attri-
bute the ownership of stock to certain fam-
ily members, between certain entities and
their owners, and to holders of options to
acquire stock. Section 318(a)(1) provides
rules attributing stock ownership among
members of a family. Section 318(a)(2)
provides rules attributing stock ownership
from partnerships, estates, trusts, and cor-
porations to partners, beneficiaries, own-
ers, and shareholders (so-called “upward
attribution”). Section 318(a)(3) generally
attributes stock owned by a person to a
partnership, estate, trust, or corporation in
which the person has an interest (so-called
“downward attribution”). In particular,
section 318(a)(3)(A) provides that stock
owned, directly or indirectly, by or for
a partner or a beneficiary of an estate is
considered as owned by the partnership or
estate. This provision applies to all part-
ners and beneficiaries without regard to
the size of their interest in the partnership
or estate. Section 318(a)(3)(B) similarly
provides, subject to certain exceptions,
that stock owned, directly or indirectly, by
or for a beneficiary of a trust (or a person
who is considered an owner of a trust) is
considered owned by the trust. Section
318(a)(3)(C) provides that stock in one
corporation owned, directly or indirectly,
by or for a shareholder in a second corpo-
ration is considered owned by the second
corporation if 50 percent or more in val-
ue of the stock in the second corporation
is owned, directly or indirectly, by such
shareholder.
As in effect before repeal, section
958(b)(4) provided that subparagraphs
(A), (B), and (C) of section 318(a)(3) (pro-
viding for downward attribution) were not
to be applied so as to consider a United
States person as owning stock owned by
a person who is not a United States per-
son (a “foreign person”). Effective for
the last taxable year of foreign corpora-
tions beginning before January 1, 2018,
and each subsequent year of the foreign
corporations, and for the taxable years of
U.S. shareholders in which or with which
such taxable years of the foreign corpora-
tions end, section 958(b)(4) was repealed
by section 14213 of the Tax Cuts and Jobs
Act, Pub. L. 115-97 (2017) (the “Act”). As
a result of this repeal, stock of a foreign
corporation owned by a foreign person can
be attributed to a United States person un-
der section 318(a)(3) for purposes of de-
termining whether a United States person
is a U.S. shareholder of the foreign corpo-
ration and, therefore, whether the foreign
corporation is a CFC. In other words, as a
result of the repeal of section 958(b)(4),
section 958(b) now provides for down-
ward attribution from a foreign person to
a United States person in circumstances in
which section 958(b), before the Act, did
not so provide. As a result, United States
persons that were not previously treated as
U.S. shareholders may be treated as U.S.

October 21, 2019 990 Bulletin No. 2019–43
shareholders, and foreign corporations
that were not previously treated as CFCs
may be treated as CFCs.
The legislative history to the Act indi-
cates that the repeal of section 958(b)(4)
was intended “to render ineffective cer-
tain transactions that are used to [sic] as
a means of avoiding the subpart F provi-
sions.” See H.R. Rep. No. 115-466, at 633
(2017) (Conf. Rep.). It further provides:
One such transaction involves effec-
tuating “de-control” of a foreign sub-
sidiary, by taking advantage of the
section 958(b)(4) rule that effectively
turns off the constructive stock own-
ership rules of 318(a)(3) when to do
otherwise would result in a U.S. person
being treated as owning stock owned
by a foreign person. Such a transaction
converts former CFCs to non-CFCs,
despite continuous ownership by U.S.
shareholders.
Id. at 633-34.
Explanation of Provisions
I. Changes in Connection with Repeal of
Section 958(b)(4)
This notice of proposed rulemaking
proposes changes that are generally in-
tended to ensure that the operation of
certain rules is consistent with their appli-
cation before the Act’s repeal of section
958(b)(4), as further explained in this Part
I. Other guidance that provides relief con-
cerning the effect of the repeal of section
958(b)(4) on the application of subpart F
more generally is provided separately.
A. Section 267: Deduction for certain
payments to foreign related persons
Section 267(a)(2) provides a match-
ing rule that governs the time at which
an otherwise deductible amount owed to
a related person may be deducted. Specif-
ically, section 267(a)(2) provides that, in
the case of certain interest and expenses
paid by the taxpayer to a related person, if
an amount is not includible in the payee’s
gross income until it is paid, the amount
generally is not allowable as a deduction
to the taxpayer until the amount is includi-
ble in the gross income of the payee.
Section 267(a)(3)(A) provides that the
Secretary shall by regulations apply the
matching principle in section 267(a)(2)
in cases in which the payee is a foreign
person. Section 1.267(a)-3(b) generally
requires a taxpayer to use the cash method
of accounting for deductions of amounts
owed to a related foreign person. An ex-
emption is provided in §1.267(a)-3(c)(2)
for any amount, other than interest, that
is income of a related foreign person with
respect to which the related foreign per-
son is exempt from U.S. tax on the amount
owed pursuant to a treaty obligation of the
United States.
Section 841(b) of Pub. L. 108-357
(2004) added section 267(a)(3)(B) to the
Code, effective for payments accrued on
or after October 22, 2004. Section 267(a)
(3)(B)(i) provides that, notwithstand-
ing section 267(a)(3)(A), in the case of
any item payable to a CFC, a deduction
is allowable to the payor with respect to
the amount for any taxable year before
the year in which paid only to the extent
that an amount attributable to the item is
includible during such prior taxable year
in the gross income of a United States
person who owns (within the meaning of
section 958(a)) stock in such corporation.
Section 267(a)(3)(B)(ii) grants the Secre-
tary the authority to issue regulations ex-
empting transactions from section 267(a)
(3)(B)(i).
For amounts accrued on or after Oc-
tober 22, 2004, a taxpayer that owes an
amount to a CFC cannot rely on the ex-
emption in §1.267(a)-3(c)(2) to generally
deduct the amount when accrued, and in-
stead can deduct the amount prior to the
year the amount is paid only to the extent
that an amount attributable to the item is
includible in gross income of a U.S. share-
holder that owns (within the meaning of
section 958(a)) stock in the CFC. After
the repeal of section 958(b)(4), a CFC
may not have any U.S. shareholders that
own stock within the meaning of section
958(a) (“section 958(a) U.S. sharehold-
ers”). Because the repeal of section 958(b)
(4) is effective for the last taxable year
of foreign corporations beginning before
January 1, 2018, and each subsequent tax-
able year of the foreign corporations, and
for the taxable year of U.S. shareholders
in which or with which such taxable year
of the foreign corporations end, a taxpayer
may have, in 2017, deducted an amount
accrued in 2017 that, due to the repeal of
section 958(b)(4), would no longer be al-
lowable in 2017.
The purpose of the matching principle
in section 267(a)(2) is to align the timing of
a deduction with the inclusion of the item
in income. If an amount is owed to a CFC
that has no section 958(a) U.S. sharehold-
ers that would include an amount attribut-
able to the item in income, and the CFC
is exempt from U.S. tax on the amount
owed due to a treaty, it is unnecessary to
not allow a taxpayer to take the deduction
when the amount is accrued. Accordingly,
the proposed regulations provide that an
amount (other than interest) that is income
of a related foreign person with respect to
which the related foreign person is exempt
from U.S. taxation on the amount owed
pursuant to a treaty obligation of the Unit-
ed States is exempt from the application
of section 267(a)(3)(B)(i) if the related
foreign person is a CFC that does not have
any section 958(a) U.S. shareholders. Pro-
posed §1.267(a)-3(c)(4).
These proposed regulations also amend
§1.267(a)-3(c)(2) and remove the rules
currently in §1.267(a)-3(c)(4), in order to
reflect the changes to section 267 in Pub.
L. 108-357. The Treasury Department and
the IRS intend to update other provisions
in §1.267(a)-3 to take into account the
changes made to section 267(a)(3) by Pub.
L. 108-357 in future guidance.
B. Section 332: Liquidation of applicable
holding company
Section 332(a) provides a general rule
that no gain or loss is recognized on the
receipt by a corporation of property dis-
tributed in complete liquidation of an-
other corporation. Section 332(d) was
enacted to disallow the nonrecognition of
gain to a foreign corporation through the
complete liquidation of certain domestic
holding companies, which could avoid the
imposition of withholding tax that would
otherwise apply to a section 301 distribu-
tion from these holding companies. See
H.R. Rep. No. 108-755, at 761-62 (2004)
(Conf. Rep.). Section 332(d)(1) provides
an exception to sections 332(a) and 331
for certain distributions by domestic cor-
porations to foreign corporations. Sec-
tion 332(d)(1) results in the recognition
by a foreign corporation of income from
the liquidation of certain domestic hold-

Bulletin No. 2019–43 991 October 21, 2019
ing companies by treating the liquidating
distribution as a distribution under sec-
tion 301. Specifically, section 332(d)(1)
provides that section 301, and not section
332(a) nor 331, applies to a distribution to
a foreign corporation in complete liqui-
dation of an applicable holding company
(as defined in section 332(d)(2)). Section
332(d)(3) provides that, notwithstanding
section 332(d)(1), exchange treatment un-
der section 331 applies if the distributee
of a distribution in complete liquidation
of an applicable holding company is a
CFC. In such a case, the gain on the dis-
tribution could be foreign personal hold-
ing company income (“FPHCI”) under
section 954(c)(1)(B), and before the Act,
CFCs generally had U.S. shareholders that
would be subject to tax on their pro rata
share of such gain under section 951(a).
Section 332(d)(4) grants the Secre-
tary the authority to issue regulations as
appropriate to prevent the abuse of sec-
tion 332(d). The repeal of section 958(b)
(4) broadened the application of section
332(d)(3) to foreign corporations that are
CFCs because of downward attribution
from a foreign person. This result could
lead to inappropriate results because any
gain recognized on an exchange of stock
of an applicable holding company under
section 331 by a foreign corporation that is
a CFC due to downward attribution from
a foreign person could avoid U.S. tax if
the CFC does not have U.S. shareholders
that have current income inclusions under
section 951(a). Therefore, in accordance
with the regulatory authority provided in
section 332(d)(4), the proposed regula-
tions modify the definition of a CFC (so
as to use the definition of a CFC in effect
immediately before the repeal of section
958(b)(4)) for purposes of applying sec-
tion 332(d)(3). See proposed §1.332-8(a).
The Treasury Department and the IRS re-
quest comments on these proposed chang-
es to the definition of a CFC for the pur-
poses of applying section 332(d)(3).
C. Section 367(a): Triggering events
exception for other dispositions or events
under §1.367(a)-8(k)(14)
Section 367(a)(1) provides that if, in
connection with an exchange described
in section 332, 351, 354, 356, or 361, a
United States person transfers property to
a foreign corporation, the foreign corpora-
tion is not treated as a corporation for pur-
poses of determining the extent to which
gain is recognized on the transfer. Section
367(a)(1) does not apply, however, to cer-
tain transfers of stock or securities of a
foreign corporation (including an indirect
stock transfer) by a United States person
(“U.S. transferor”) if the U.S. transferor
enters into a gain recognition agreement
(“GRA”) with respect to the transferred
stock or securities. See §1.367(a)-3(b)(1).
In general, a U.S. transferor subject to a
GRA must recognize gain if a triggering
event (as defined in §1.367(a)-8(j)) occurs
during the term of a GRA. See §1.367(a)-
8(j). Section 1.367(a)-8(k) provides sever-
al exceptions for certain dispositions that
constitute nonrecognition transactions if,
immediately after the disposition, the U.S.
transferor meets certain requirements. In
particular, §1.367(a)-8(k)(14) generally
provides that a disposition or other event
is not a triggering event if the disposition
or other event qualifies as a nonrecogni-
tion transaction, and, immediately after
the disposition or other event, the U.S.
transferor retains a direct or indirect in-
terest in the transferred stock or securities
or, as applicable, in substantially all of the
assets of the transferred corporation. The
rule further provides that if a foreign cor-
poration acquires the transferred stock or
securities or, as applicable, substantially
all the assets of the transferred corpora-
tion, the exception applies only if the U.S.
transferor owns at least five percent (ap-
plying the attribution rules of section 318,
as modified by section 958(b)) of the total
voting power and the total value of the
outstanding stock of such foreign corpo-
ration. This five-percent ownership con-
dition is intended to limit the application
of the general exception to transactions in
which the U.S. transferor retains at least a
minimal interest in the transferred stock or
securities (or substantially all the assets of
the transferred corporation). See TD 9446,
74 FR 6952, 6953 (February 11, 2009).
The exception described in the preced-
ing paragraph was added when section
958(b)(4) did not allow for downward
attribution from foreign persons. A U.S.
transferor that would not have been eligi-
ble for the exception because it held a less
than five percent interest in the transferred
stock or securities (or substantially all the
assets of the transferred corporation) could
now be eligible for the exception if the U.S.
transferor holds at least five percent due to
downward attribution of stock owned by
a foreign person. A U.S. transferor’s con-
structive ownership interest should not in-
clude an interest that is treated as owned
as a result of downward attribution from a
foreign person as it would inappropriately
treat the U.S. transferor as owning an inter-
est it would not have owned under the rules
in effect when §1.367(a)-8(k)(14) was add-
ed. Therefore, in accordance with the regu-
latory authority provided in section 367(a),
the proposed regulations revise §1.367(a)-
8(k)(14) to apply section 958(b) without
regard to the repeal of section 958(b)(4).
See proposed §1.367(a)-8(k)(14)(ii). The
Treasury Department and the IRS request
comments on these proposed revisions to
§1.367(a)-8(k)(14).
D. Section 672: CFC’s ownership of a
trust
Section 672(f)(1) generally provides
that the grantor trust rules in sections 671
through 679 apply only to the extent they
result in income being currently taken into
account (either directly or through one or
more entities) by a citizen or resident of
the United States or a domestic corpora-
tion. To the extent that a trust or a portion
thereof is not taxed as a grantor trust, the
trust and its beneficiaries are taxable in
accordance with the rules of sections 641
through 669. In the case of a foreign non-
grantor trust, accumulation distributions
are not only taxable to U.S. beneficiaries,
but also subject to the “throwback rules”
of sections 665 through 668.
Section 672(f)(3)(A) provides special
rules, however, for a trust that is treated
as owned by a CFC. Except as otherwise
provided by regulations, CFCs are treated
as domestic corporations for purposes of
section 672(f)(1). Section 672(f)(3)(A).
Before the repeal of section 958(b)(4), the
portion of a trust’s income that was treated
as owned by a CFC would generally have
been taxable currently to the U.S. share-
holders to the extent the trust’s income
constituted subpart F income of the CFC.
After the repeal of section 958(b)
(4), however, a CFC may have no U.S.
shareholders that would be subject to tax
on their pro rata share of its subpart F in-

October 21, 2019 992 Bulletin No. 2019–43
come under section 951(a). A CFC could
be formed to facilitate tax-free accumu-
lation of income in a trust for the benefit
of United States persons and result in tax-
free distributions from the trust to the U.S.
beneficiaries. In such a case, none of the
income or gain of the grantor trust would
be taken into account by U.S. sharehold-
ers, despite constituting subpart F income,
while distributions of income from the
trust to its U.S. beneficiaries would not
be subject to tax, and the throwback rules
would be avoided entirely.
Therefore, the proposed regulations, in
accordance with the regulatory authority
provided in section 672(f)(3), provide that
the only CFCs taken into account for pur-
poses of section 672(f) are those that are
CFCs without regard to downward attri-
bution from foreign persons. See proposed
§1.672(f)-2(a). A reference to foreign per-
sonal holding companies in §1.672(f)-2(a)
is also deleted, consistent with the repeal
of the foreign personal holding company
regime by section 413(a) of the American
Jobs Creation Act of 2004, Pub. L. 108-
357. Id. The Treasury Department and the
IRS request comments on these proposed
revisions to §1.672(f)-2(a).
E. Section 706: Taxable year of
partnership
Section 706 provides rules for determin-
ing the taxable year of a partnership and its
partners. Section 1.706-1(b)(6)(i) provides
that in determining the taxable year of a
partnership under section 706(b) and the
regulations thereunder, any interest held by
a disregarded foreign partner is not taken
into account. A foreign partner is a disre-
garded foreign partner unless the foreign
partner is allocated any gross income of the
partnership that was effectively connected
(or treated as effectively connected) with
the conduct of a trade or business within
the United States (“effectively connected
income”) during the partnership’s taxable
year immediately preceding the current
taxable year (or, if such partner was not a
partner during the partnership’s immediate-
ly preceding taxable year, the partnership
reasonably believes that the partner will
be allocated any such income during the
current taxable year) and taxation of that
income is not otherwise precluded under
any U.S. income tax treaty. For purposes of
these rules, §1.706-1(b)(6)(ii) defines a for-
eign partner as a partner that is not a United
States person (as defined in section 7701(a)
(30)), but provides that CFCs are not treat-
ed as foreign partners. When §1.706-1(b)
(6)(ii) was added, CFCs were not treated as
foreign partners for purposes of determin-
ing a partnership’s taxable year under sec-
tion 706 because the U.S. owners of such
entities were subject to U.S. federal income
taxation on a current basis with respect to
certain income earned by these entities.
See 66 FR 3920, 3921 (January 17, 2001).
As a result of the repeal of section 958(b)
(4), a foreign corporation that is a CFC
solely by reason of downward attribution
from a foreign person may now be taken
into account for purposes of determining
the taxable year of such partnership. This
would include a foreign corporation that is
a CFC even if the CFC does not have a U.S.
shareholder who owns stock of the foreign
corporation within the meaning of section
958(a) and is required to include amounts
in income under section 951(a). According-
ly, the proposed regulations exclude from
the definition of foreign partner only CFCs
with respect to which a U.S. shareholder
owns stock within the meaning of section
958(a) for purposes of determining a part-
nership taxable year. See proposed §1.706-
1(b)(6)(ii). As in proposed §1.672(f)-2(a),
discussed in Part I.D of this Explanation of
Provisions, the reference to foreign person-
al holding companies is also deleted. See
id. The Treasury Department and the IRS
request comments on these proposed revi-
sions to §1.706-1(b)(6)(ii).
F. Section 863: Space and ocean income
and international communications
income of a CFC
Section 863 and the regulations thereun-
der provide rules for determining the source
of certain items of gross income, including
gross income from space and ocean ac-
tivities and international communications
income. Section 863(d)(1) provides that,
except as provided in regulations, any in-
come derived from a space or ocean activi-
ty (“space and ocean income”) by a United
States person is sourced in the United States
(“U.S. source income”) and that any space
and ocean income derived by a foreign per-
son is sourced outside the United States
(“foreign source income”). Regulations un-
der section 863(d) include an exception from
the statutory provision regarding space and
ocean income derived by a foreign person
if the foreign person is a CFC. Specifically,
space and ocean income derived by a CFC
is treated as U.S. source income, except to
the extent that the income, based on all the
facts and circumstances, is attributable to
functions performed, resources employed,
or risks assumed in a foreign country. See
§1.863-8(b)(2)(ii).
In the case of any United States person,
50 percent of any international commu-
nications income (as defined in section
863(e)(2)) is treated as U.S. source in-
come and 50 percent of such income is
treated as foreign source income. Section
863(e)(1)(A). Subject to certain excep-
tions, including exceptions set forth in
regulations, international communications
income derived by a foreign person is
treated as foreign source income. Section
863(e)(1)(B)(i). Regulations under section
863(e) provide that international commu-
nications income derived by a CFC is
treated as one-half U.S. source income
and one-half foreign source income. See
§1.863-9(b)(2)(ii).
The status of the recipient of space and
ocean income and international communi-
cations income as a CFC solely by reason
of the repeal of section 958(b)(4) should not
cause all or part of such income to be U.S.
source income if it would not have been
treated as such otherwise. Accordingly, in
accordance with the regulatory authority
provided in section 863(d)(1) and (e)(1)(B)
(i), and consistent with the temporary relief
announced in section 5.01 of Notice 2018-
13, 2018-6 I.R.B. 341, these proposed reg-
ulations provide that whether a foreign cor-
poration is a CFC for purposes of the rules
under sections 863(d) and (e) treating space
and ocean income and international com-
munications income as U.S. source income
in whole or in part is determined without
regard to downward attribution from a for-
eign person. See proposed §§1.863-8(b)(2)
(ii) and 1.863-9(b)(2)(ii).
G. Section 904: Look-through rules
and active rents and royalties exception
to categorization as passive category
income
In general, section 904(a) limits the
amount of foreign income taxes that a tax-

Bulletin No. 2019–43 993 October 21, 2019
payer, including a U.S. shareholder, may
claim as a credit against its U.S. income
tax based on the taxpayer’s foreign source
income. Section 904(d) further limits the
credit by category of foreign source in-
come, with general category and passive
category being two common categories
of income. Passive category income in-
cludes passive income, which means in-
come that would be FPHCI if the recipient
were a CFC. This generally includes div-
idends, interest, rents, and royalties. See
section 904(d)(2)(B)(i) and 954(c)(1)(A).
However, if such amounts are received or
accrued by a U.S. shareholder of a CFC
from the CFC, the amounts are treated as
passive category income only to the extent
they are allocable to passive category in-
come of the CFC (the “CFC look-through
rule”). See section 904(d)(3). Application
of the CFC look-through rule requires
determining the category of income of
the CFC to which the dividends, interest,
rents, or royalties paid to the U.S. share-
holder (or other related look-through enti-
ty) are allocable.
Rents and royalties received by a CFC
are generally passive category income
unless the income is derived in the active
conduct of a trade or business (the “section
904 active rents and royalties exception”),
taking into account activities of affiliated
group members. See §1.904-4(b)(2)(iii).
The section 904 active rents and royalties
exception applies both for determining the
category to which a U.S. shareholder’s in-
clusion under section 951(a) attributable to
the receipt of rents and royalties by a CFC
is assigned under section 904(d)(3)(B), and
for purposes of applying the CFC look-
through rule to determine the category to
which dividends, interest, rents, and royal-
ties paid or accrued by the CFC are allo-
cable under section 904(d)(3)(C) and (D).
Financial services income received
by certain CFCs or a domestic corpora-
tion is treated as general category income
(the “financial services income rule”).
See section 904(d)(2)(C)(i). In determin-
ing whether income is financial services
income for purposes of section 904, the
activities of affiliated group members,
including CFCs, are taken into account
to determine whether such entities are
financial services entities (the “financial
services entity requirement”). See section
904(d)(2)(C)(ii) and §1.904-4(e)(3)(ii).
The formulation of the CFC look-
through rule and the affiliated group rules
in both the section 904 active rents and
royalties exception and the financial ser-
vices income rules was premised on the
assumption that income of CFCs (includ-
ing affiliated group members meeting the
active conduct requirement or the finan-
cial services entity requirement) would be
subject to U.S. tax under section 951(a)
or on a distribution of earnings and prof-
its generated by such income, and that
foreign corporations to which the rules
applied would be directly or indirectly
controlled by United States persons able
to obtain information concerning their ac-
tivities, income, and expenses. See H.R.
Rep. No. 99-841, Volume II, at 566 and
573-574 (1986) (Conf. Rep.); see also
T.D. 8412, 57 FR 20639, 20640 (May 14,
1992); id. at 20641; and 66 FR 319, 321
(January 3, 2001). Treating foreign corpo-
rations as CFCs or United States persons
as U.S. shareholders by reason of down-
ward attribution from foreign persons for
purposes of the CFC look-through rule
and the affiliated group rules would be in-
consistent with the intended scope of the
rules. Before the repeal of section 958(b)
(4), a U.S. shareholder of a foreign cor-
poration in which U.S. shareholders held
directly or indirectly at least 10 percent,
but not more than 50 percent, of the vot-
ing stock or value, would be eligible to
treat dividends, but not interest, rents, and
royalties, as other than passive category
income. See section 904(d)(4). Similarly,
under the affiliated group rules, neither the
active conduct requirement in the section
904 active rents and royalties exception
nor the financial services entity require-
ment in the financial services income rule
could be satisfied by a foreign corporation
that would be a CFC only by reason of
downward attribution from a foreign per-
son.
Accordingly, in accordance with the
regulatory authority provided in section
904(d)(7), the regulations under section
904 are revised to limit the application of
the affiliated group rules in the section 904
active rents and royalties exception and
the financial services income rule, as well
as the CFC look-through rule, to foreign
corporations that are CFCs without regard
to downward attribution from foreign
persons. Further, the CFC look-through
rule, as proposed to be revised at 83 FR
63200 (December 7, 2018), is further re-
vised to apply only to U.S. shareholders
that are U.S. shareholders without regard
to downward attribution from foreign per-
sons. See proposed §1.904-5(a)(4)(i) and
(vi) (providing definitions that apply for
purposes of §§1.904-4 and 1.904-5, pur-
suant to §§1.904-4(a) and 1.904-5(a)(4)
as proposed to be revised at 83 FR 63200
(December 7, 2018)). The Treasury De-
partment and the IRS request comments
on these proposed revisions to the regula-
tions under section 904.
H. Section 958: Rules for determining
stock ownership
To ensure that the regulations un-
der section 958 are consistent with the
amended statute, this notice of proposed
rulemaking removes the rule in §1.958-
2(d)(2) that corresponds to section 958(b)
(4). It also revises Example 4 in §1.958-
2(g) to illustrate the application of the
ownership attribution rules in section 958
in the absence of section 958(b)(4).
I. Section 1297: PFIC asset test
Section 1297(e) provides the rules used
to measure a foreign corporation’s assets
for purposes of determining whether it
meets the asset test in section 1297(a)(2)
and is a passive foreign investment com-
pany (“PFIC”). If the foreign corporation
is a CFC and is not a publicly traded cor-
poration, when determining whether the
average percentage of assets of the cor-
poration that produce passive income is
at least 50 percent, adjusted basis (rather
than value) of the assets must be used.
Section 1297(e)(2). Accordingly, share-
holders of a foreign corporation that be-
came a CFC as a result of the repeal of
section 958(b)(4) will have to determine
whether the average percentage of assets
that produce passive income is at least 50
percent using adjusted basis.
The legislative history to section
1297(e) indicates that the adjusted ba-
sis requirement for CFCs exists because
“measurement by adjusted basis is well
established in the case of controlled for-
eign corporations’ investments of earnings
in U.S. property, and is highly appropriate
to the task of measuring the earnings of

October 21, 2019 994 Bulletin No. 2019–43
a controlled foreign corporation that are
invested in excess passive assets.” H.R.
Rep. No. 103-111, at 692 (1993). Howev-
er, the rule imposes a burden on taxpayers
that own stock in foreign corporations that
became CFCs solely by reason of the re-
peal of section 958(b)(4), which may not
otherwise be required to account for the
basis in assets under U.S. federal income
tax rules. Section 1298(g) grants the Sec-
retary the authority to issue regulations
that are necessary and appropriate to carry
out the purposes of sections 1291 through
1298. In accordance with this authority,
the proposed regulations modify the defi-
nition of a CFC for purposes of section
1297(e) to disregard downward attribu-
tion from foreign persons. See proposed
§1.1297-1(d)(1)(iii)(A).
J. Section 6049: Chapter 61 reporting
provisions
Generally, under chapter 61 of subtitle F
of the Code, a payor must report to the IRS
(using the appropriate Form 1099) certain
payments or transactions with respect to
United States persons that are not exempt
recipients. The regulations under chap-
ter 61 generally provide that the scope of
payments or transactions subject to report-
ing under chapter 61 depends, in part, on
whether or not the payor is a U.S. payor (as
defined in §1.6049-5(c)(5)), which general-
ly includes United States persons and their
foreign branches, as well as CFCs.
Foreign corporations that became
CFCs solely as a result of the repeal of
section 958(b)(4) could be subject to an in-
creased burden from the reporting require-
ments under chapter 61 (and the backup
withholding rules under section 3406).
To mitigate the increased Form 1099 re-
porting by foreign corporations that may
have no direct or indirect owners that are
United States persons, in accordance with
the regulatory authority provided in sec-
tion 6049(a), proposed §1.6049-5(c)(5)
(i)(C) provides that a U.S. payor includes
only a CFC that is a CFC without regard
to downward attribution from a foreign
person.
II. Applicability Dates
These regulations are generally pro-
posed to apply on or after October 1,
2019. See section 7805(b)(1)(B). For tax-
able years before taxable years covered by
the regulations, a taxpayer may generally
apply the rules set forth in the final regu-
lations to the last taxable year of a foreign
corporation beginning before January 1,
2018, and each subsequent taxable year
of the foreign corporation, and to tax-
able years of U.S. shareholders in which
or with which such taxable years of the
foreign corporation end, provided that the
taxpayer and United States persons that
are related (within the meaning of section
267 or 707) to the taxpayer consistently
apply the relevant rule with respect to all
foreign corporations. See section 7805(b)
(7). Moreover, although proposed §1.958-
2 is proposed to apply to taxable years of
foreign corporations ending on or after
October 1, 2019, and taxable years of U.S.
shareholders in which or with which such
taxable years of foreign corporations end,
the same result as the proposed revisions
applies before such date due to the effec-
tive date of the repeal of section 958(b)(4).
A taxpayer may rely on the proposed
regulations with respect to any period
before the date that these regulations are
published as final regulations in the Fed-
eral Register.
Statement of Availability of IRS
Documents
IRS Revenue Procedures, Revenue
Rulings, notices, and other guidance cited
in this document are published in the In-
ternal Revenue Bulletin and are available
from the Superintendent of Documents,
U.S. Government Printing Office, Wash-
ington, DC 20402, or by visiting the IRS
website at http://www.irs.gov.
Special Analyses
I. Regulatory Planning and Review –
Economic Analysis
Executive Orders 13563 and 12866
direct agencies to assess costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs and
benefits, of reducing costs, of harmoniz-
ing rules, and of promoting flexibility.
The Treasury Department requests com-
ment and any potential data regarding the
expected impacts of this proposed regula-
tion.
This regulation is subject to review un-
der section 6(b) of Executive Order 12866
pursuant to the April 11, 2018, Memo-
randum of Agreement (“April 11, 2018
MOA”) between the Treasury Depart-
ment and the Office of Management and
Budget (“OMB”) regarding review of tax
regulations. The Acting Administrator of
the Office of Information and Regulatory
Affairs (“OIRA”), OMB, has waived re-
view of this proposed rule in accordance
with section 6(a)(3)(A) of Executive Or-
der 12866. OIRA will subsequently make
a significance determination of the final
rule under the terms of item 1 of the April
11, 2018 MOA between the Treasury De-
partment and OMB regarding review of
tax regulations.
A. Background
Section 14213 of the Act repealed sec-
tion 958(b)(4), effective beginning with
the last taxable year of a foreign corpo-
ration that begins before January 1, 2018
(and taxable years of U.S. shareholders in
which or with which such taxable years
of foreign corporations end). The repeal
of section 958(b)(4) by the Act modified
the constructive ownership rules that de-
termine whether a foreign corporation
is a CFC and whether a U.S. person is
a U.S. shareholder of a CFC. Under sec-
tion 318(a)(3), stock owned by a person
is attributed downward to (that is, con-
sidered to be owned by) a partnership,
estate, trust, or corporation in which the
person owns an interest. Prior to repeal,
section 958(b)(4) limited the application
of section 318(a)(3) for purposes of de-
termining whether a foreign corporation
is a CFC and whether a U.S. person is a
U.S. shareholder by providing that down-
ward attribution under section 318(a)
(3) was not applied so as to consider a
U.S. person as owning the stock owned
by a foreign person. After the repeal of
section 958(b)(4), such stock owned by
a foreign person can be attributed down-
ward to a U.S. person, for example, to a

Bulletin No. 2019–43 995 October 21, 2019
U.S. subsidiary of a foreign parent. As
a result, additional foreign corporations
are now CFCs, and U.S. persons are now
U.S. shareholders of CFCs, even in cases
where the foreign corporation has no or
little U.S ownership.
B. The need for proposed regulations
The legislative history to the Act states
that the repeal of section 958(b)(4) was in-
tended “to render ineffective certain trans-
actions that are used to [sic] as a means
of avoiding the subpart F provisions.” See
H.R. 115-466, at 633 (2017). As a conse-
quence of this repeal, many foreign enti-
ties that are part of multinational groups
with U.S. subsidiaries are now considered
CFCs even in cases where there is no
avoidance of tax under subpart F.
The treatment of a foreign corpora-
tion as a CFC, or a U.S. person as a U.S.
shareholder, has consequences outside of
subpart F because many statutes and regu-
lations outside of subpart F have rules that
turn on the status of a foreign corporation
as a CFC or the status of a U.S. person as
a U.S. shareholder.
These proposed regulations propose
changes that are generally intended to en-
sure that, in appropriate circumstances,
the operation of certain rules is consistent
with their application before the repeal of
section 958(b)(4). This creates continuity
and gives taxpayers tax certainty, which
allows them to make economically effi-
cient decisions. By restoring the pre-Act
rule for certain provisions, the proposed
regulations both alleviate certain burdens
of CFC status resulting from the section
958(b)(4) repeal unrelated to the afore-
mentioned intended purposes of the re-
peal and neutralize possible incentives
to unfairly exploit the section 958(b)(4)
repeal.
C. Baseline
The economic analysis that follows
compares the proposed regulations to a
no-action baseline reflecting anticipated
Federal income tax-related behavior in
the absence of the proposed regulations. A
no-action baseline reflects the current en-
vironment including the existing interna-
tional tax regulations, prior to any amend-
ment by the proposed regulations.
D. Cost and benefits of the proposed
regulations and potential alternatives
As described in Part I.A of this Special
Analyses, the repeal of section 958(b)(4)
causes stock owned by a foreign parent
to be attributed to its U.S. subsidiaries,
which can cause a foreign subsidiary of a
foreign parent to be designated as a CFC,
even in instances where there is little or
no U.S. ownership in the foreign multi-
national group. The Treasury Department
and the IRS estimate the number of U.S.
subsidiaries owned 50 percent or more by
a foreign corporation to be roughly 75,000
based on 2016 Treasury tax files data. To
the extent that these foreign corporations
have foreign subsidiaries, they are poten-
tially affected by the proposed regulations.
Unfortunately, however, data do not exist
regarding the number of such foreign sub-
sidiaries. The costs and benefits of these
proposed regulations are discussed further
in this Part I.D.
1. Benefits
Restoring continuity with pre-repeal
rules in appropriate cases is beneficial in
two primary ways. First, it reinstates ex-
pected reporting burdens and tax costs
for businesses that would otherwise ex-
perience unintended and unanticipated in-
creases in these costs due to the unexpect-
ed switch to CFC designation described in
Part I.A of this Special Analyses. Unantic-
ipated increases in costs can be detrimen-
tal to normal business operations and can
put affected groups at a disadvantage rel-
ative to competitors who did not experi-
ence such changes. Regulations designed
to maintain continuity of normal business
operations are appropriate and will pro-
mote a positive business environment rel-
ative to the no action baseline.
One of the provisions in these pro-
posed regulations that alleviates burden
is the provision under section 863 on
income from space and ocean activities
and international communications in-
come. In this case (as well as in all other
aspects of these proposed regulations),
the proposed regulations prevent unin-
tended disruption in business activity
by determining CFC status as if section
958(b)(4) had not been repealed. In the
absence of these proposed regulations,
foreign-parented multinational groups in
the space, ocean, and international com-
munications industries that have U.S.
subsidiaries could potentially have their
foreign subsidiaries designated as CFCs.
The designation of the foreign subsidiar-
ies of the foreign-parented multinational
groups as CFCs would result in all (in the
case of space and ocean income) or half
(in the case of international communica-
tions income) of the foreign subsidiary’s
space and ocean income or international
communications income being treated as
U.S. source income where the CFCs are
controlled directly or indirectly by for-
eign persons. Comments received sug-
gested that such treatment would render
companies’ business models untenable.
Accordingly, the proposed regulations
provide that for purposes of the treat-
ment of space and ocean income and
international communications income as
U.S. source income, the determination of
whether a foreign corporation is a CFC
is made without regard to downward at-
tribution from a foreign person. See Part
I.F of the Explanation of Provisions for
further explanation of this provision.

Another example of reduced burden
under this rule relates to the timing of cer-
tain transactions. As explained in Part I.A
of the Explanation of Provisions, section
267(a)(2) provides a rule for determining
the time at which an otherwise deductible
amount owed to a related person may be
deducted. In general, if a payee is on the
cash method of accounting, the payor is
not allowed a deduction until the amount
is actually paid, even if the payor uses
the accrual method of accounting. The
current regulations include an exemption
that allows an accrual-based payor to de-
duct certain treaty-exempt amounts before
they are actually paid to a related foreign
person. However, this exemption is not
allowed if the related foreign person is a
CFC. Instead, with respect to an amount
owed to a CFC, the payor may only take
a deduction in an earlier year to the extent
that an amount attributable to the item is
includible during such prior taxable year
in the gross income of a U.S. person who
owns stock in the CFC. However, after the
repeal of section 958(b)(4), a CFC may
not have any U.S. shareholders that would
have an income inclusion under subpart F.
In this situation, the payor would be un-

October 21, 2019 996 Bulletin No. 2019–43
able to deduct the amount until it is actu-
ally paid.
Because of the effective date of the
repeal of section 958(b)(4), a foreign cor-
poration that was not a CFC under prior
law could now become a CFC beginning
as early as January 1, 2017 (even though
the Act was not enacted until December
22, 2017). Accordingly, a taxpayer may
have deducted an amount accrued in 2017
that, due to the repeal of section 958(b)
(4), would no longer be allowable in 2017.
Furthermore, due to the reduction of the
corporate tax rate in the Act, a deduction
allowed on a company’s 2017 tax return at
the then statutory rate of 35 percent would
be valued at 21 percent if the taxpay-
er were forced to move the deduction to
2018 or 2019. The repeal of section 958(b)
(4) in this situation may result in an inad-
vertent deferral of certain deductions with
permanent tax effect and correspondingly
create unnecessary required adjustments
to the income tax provisions in compa-
nies’ financial accounting statements. The
proposed guidance removes inconsistent
annual treatment of deductions for certain
treaty-exempt payments in the year the
amounts are accrued when the amounts
are owed to related foreign corporations
that do not have any direct or indirect U.S.
shareholders.
The second benefit of restoring pre-Act
treatment is that doing so can neutralize
unanticipated incentives for tax minimi-
zation resulting from the repeal. That is,
CFC status can both increase burdens and
offer benefits, but the unintended increase
in CFC designations and the ease with
which taxpayers can create a CFC could
incentivize taxpayers to take advantage of
potential benefits arising from CFC status.
For example, Part I.B of the Explanation
of Provisions describes a proposed revi-
sion that is intended to prevent taxpayers
from using the special rule for CFCs in
section 332(d)(3) to inappropriately avoid
U.S. tax on a liquidating distribution. In
addition, Part I.D of the Explanation of
Provisions describes a proposed revision
that is intended to prevent taxpayers from
using a CFC that has no direct or indirect
U.S. shareholders to take advantage of
the special rule relating to CFCs that are
grantors of a trust, facilitating tax-free
distributions from the trust to U.S. benefi-
ciaries despite no income inclusion by the
shareholders of the CFC. Because these
benefits were not intended for CFCs with-
out direct or indirect U.S. shareholders,
the anti-abuse aspects of these proposed
regulations are designed to remove such
incentives for taxpayers with those CFCs.
Such regulations are beneficial because
they promote an environment in which
business operations are undertaken based
on sound economic principles rather than
for tax-motivated reasons.
2. Costs
The proposed regulations restore
pre-section 958(b)(4) repeal CFC desig-
nation by determining CFC designation
in limited situations as if section 958(b)
(4) had not been repealed, essentially re-
storing the pre-repeal “status quo” in these
situations. The proposed regulations do
not impose any new systems, methods,
structures, reporting, or other potential-
ly burdensome rules that could increase
compliance costs. In fact, as described
above, they reduce costs or burdens that
would ensue in the absence of the pro-
posed regulations. Hence, in restoring the
status quo in appropriate circumstances,
the proposed regulations are not expected
to impose new costs.
II. Regulatory Flexibility Act
It is hereby certified that these proposed
regulations will not have a significant eco-
nomic impact on a substantial number of
small entities within the meaning of sec-
tion 601(6) of the Regulatory Flexibility
Act (5 U.S.C. chapter 6). The proposed
regulations generally affect CFCs and
U.S. shareholders of CFCs. As an initial
matter, CFCs, as foreign corporations, are
not considered small entities. Nor are U.S.
taxpayers considered small entities to the
extent the taxpayers are natural persons or
entities other than small entities. Thus, the
proposed regulations generally only affect
small entities if a U.S. taxpayer that is a
U.S. shareholder of a CFC is a small en-
tity.
Businesses that are U.S. shareholders
of CFCs are generally not small businesses
because the ownership of sufficient stock
of a CFC in order to be a U.S. sharehold-
er generally entails significant resources
and investment. Therefore, the Treasury
Department and the IRS have determined
that the proposed regulations would not
affect a substantial number of domestic
small business entities. Moreover, the
proposed regulations do not impose any
new costs on taxpayers. Consequently, the
Treasury Department and the IRS have
determined that the proposed regulations
will not have a significant economic im-
pact on a substantial number of small en-
tities. Therefore, a Regulatory Flexibility
Analysis under the Regulatory Flexibility
Act is not required.
Pursuant to section 7805(f), this notice
of proposed rulemaking has been submit-
ted to the Chief Counsel for Advocacy
of the Small Business Administration for
comment on its impact on small business.
The Treasury Department and the IRS
request comments on the impact of these
proposed regulations on small business
entities.
Comments and Requests for a Public
Hearing
Before the proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are
submitted timely to the IRS as prescribed
in this preamble under the “ADDRESS-
ES” heading. The Treasury Department
and the IRS request comments on all as-
pects of the proposed regulations. The
Treasury Department and the IRS also
request comments on whether any other
rules should be modified in light of the re-
peal of section 958(b)(4).
All comments will be available at www.
regulations.gov or upon request. A public
hearing will be scheduled if requested in
writing by any person that timely submits
written comments. If a public hearing is
scheduled, notice of the date, time, and
place for the public hearing will be pub-
lished in the Federal Register.
Drafting Information
The principal authors of the proposed
regulations are Karen J. Cate and Jorge
M. Oben of the Office of Associate Chief
Counsel (International). However, other
personnel from the Treasury Department

Bulletin No. 2019–43 997 October 21, 2019
and the IRS participated in the develop-
ment of the proposed regulations.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by revising the entry
for § 1.267(a)-3 and adding entries for §§
1.332-8 and 1.1297-1 in numerical order
to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.267(a)-3 also issued under 26
U.S.C. 267(a)(3)(A) and (a)(3)(B)(ii).
* * * * *
Section 1.332-8 also issued under 26
U.S.C. 332(d)(4).
* * * * *
Section 1.1297-1 also issued under 26
U.S.C. 1298(g).
* * * * *
Par. 2. Section 1.267(a)-3 is amended
by:
1. Removing the language “or (a)(3)”
from paragraph (c)(2).
2. Revising paragraph (c)(4).
3. In paragraph (d), revising the second
sentence and adding five sentences at
the end of the paragraph.
The revisions and addition read as fol-
lows:
§1.267(a)-3 Deduction of amounts
owed to related foreign persons.
* * * * *
(c) * * *
(4) Certain amounts owed to cer-
tain controlled foreign corporations. An
amount (other than interest) that is income
of a related foreign person with respect
to which the related foreign person is ex-
empt from United States taxation on the
amount owed pursuant to a treaty obliga-
tion of the United States (such as under an
article relating to the taxation of business
profits) is exempt from the application of
section 267(a)(3)(B)(i) if the related for-
eign person is a controlled foreign corpo-
ration that does not have any United States
shareholders (as defined in section 951(b))
that own (within the meaning of section
958(a)) stock of the controlled foreign
corporation.
* * * * *
(d) * * * Except as otherwise provid-
ed in this paragraph (d), the regulations
in this section issued under section 267
apply to all other deductible amounts
that are incurred after July 31, 1989, but
do not apply to amounts that are incurred
pursuant to a contract that was binding
on September 29, 1983, and at all times
thereafter (unless the contract was renego-
tiated, extended, renewed, or revised after
that date). Paragraph (c)(2) of this section
applies to payments accrued on or after
October 22, 2004. For payments accrued
before October 22, 2004, see §1.267(a)-
3(c)(2), as contained in 26 CFR part 1,
revised as of April 1, 2004. Paragraph
(c)(4) of this section applies to payments
accrued on or after October 1, 2019. For
payments accrued before October 1, 2019
a taxpayer may apply paragraph (c)(4) of
this section for payments accrued during
the last taxable year of a foreign corpo-
ration beginning before January 1, 2018,
and each subsequent taxable year of the
foreign corporation, provided that the tax-
payer and United States persons that are
related (within the meaning of section 267
or 707) to the taxpayer consistently apply
such paragraph with respect to all foreign
corporations. For payments accrued be-
fore October 22, 2004, see §1.267(a)-3(c)
(4), as contained in 26 CFR part 1, revised
as of April 1, 2004.
Par. 3. Section 1.332-8 is added to read
as follows:
§1.332-8 Recognition of gain on liqui-
dation of certain holding companies.
(a) Definition of controlled foreign cor-
poration. For purposes of section 332(d)
(3), a controlled foreign corporation has
the meaning provided in section 957, de-
termined without applying subparagraphs
(A), (B), and (C) of section 318(a)(3) so
as to consider a United States person as
owning stock which is owned by a person
who is not a United States person.
(b) Applicability date. This section ap-
plies to distributions in complete liquida-
tion occurring on or after October 1, 2019,
and to distributions in complete liquida-
tion occurring before October 1, 2019, that
result from an entity classification election
made under §301.7701-3 of this chapter
that is filed on or after October 1, 2019.
For distributions in complete liquidation
occurring before October 1, 2019, other
than distributions in complete liquidation
occurring before October 1, 2019, that re-
sult from an entity classification election
made under §301.7701-3 of this chapter
that is filed on or after October 1, 2019, a
taxpayer may apply this section to distri-
butions in complete liquidation occurring
during the last taxable year of a distributee
foreign corporation beginning before Jan-
uary 1, 2018, and each subsequent taxable
year of the foreign corporation, provided
that the taxpayer and United States per-
sons that are related (within the meaning
of section 267 or 707) to the taxpayer con-
sistently apply this section with respect to
all foreign corporations.
Par. 4. Section 1.367(a)-8 is amended
by:
1. Revising the second sentence of para-
graph (k)(14)(ii).
2. In paragraph (p)(3), designating Ex-
amples 1 through 3 as paragraphs (p)
(3)(i) through (iii), respectively.
3. In newly redesignated paragraphs (p)
(3)(i) through (iii), redesignating the
paragraphs in the first column as the
paragraphs in the second column:
Old ParagraphsNew Paragraphs
(p)(3)(i)(i) and (ii)(p)(3)(i)(A) and (B)
(p)(3)(ii)(i) and (ii)(p)(3)(ii)(A) and (B)
(p)(3)(iii)(i) and (ii)(p)(3)(iii)(A) and (B)

October 21, 2019 998 Bulletin No. 2019–43
4. In each newly redesignated paragraph
listed in the first column, removing
the language in the second column and adding in its place the language
in the third column:
ParagraphRemoveAdd
(p)(3)(i)(B)
this Example 1In paragraph (p)(3)(i)(A) of this section (the facts of this Example 1)
(p)(3)(ii)(B)
this Example 2In paragraph (p)(3)(ii)(A) of this section (the facts of this Example 1)
5. In paragraph (q)(2):
a. Removing the language “at least
5% (applying the attribution
rules of section 318, as modified
by section 958(b))” each place
that it appears and adding “at
least 5% (determined as provid-
ed in paragraph (k)(14)(ii) of this
section)” in its place.
b. Designating Examples 1 through
25 as paragraphs (q)(2)(i)
through (xxv), respectively.
6. In newly redesignated paragraphs
(q)(2)(i) through (xxv), redesignat-
ing the paragraphs in the first column
as the paragraphs in the second col-
umn:
Old ParagraphsNew Paragraphs
(q)(2)(i)(i) and (ii)(q)(2)(i)(A) and (B)
(q)(2)(ii)(i) and (ii)(q)(2)(ii)(A) and (B)
(q)(2)(ii)(B)(A) and (B)
(q)(2)(ii)(B)(1) and (2)
(q)(2)(iii)(i) and (ii)(q)(2)(iii)(A) and (B)
(q)(2)(iv)(i) and (ii)(q)(2)(iv)(A) and (B)
(q)(2)(iv)(B)(A) and (B)
(q)(2)(iv)(B)(1) and (2)
(q)(2)(iv)(B)(2)(1) through (3)(q)(2)(iv)(B)(2)(i) through (iii)
(q)(2)(v)(i) and (ii)(q)(2)(v)(A) and (B)
(q)(2)(vi)(i) through (iii)(q)(2)(vi)(A) through (C)
(q)(2)(vi)(B)(A) and (B)
(q)(2)(vi)(B)(1) and (2)
(q)(2)(vi)(B)(2)(1) through (3)(q)(2)(vi)(B)(2)(i) through (iii)
(q)(2)(vii)(i) and (ii)(q)(2)(vii)(A) and (B)
(q)(2)(viii)(i) and (ii)(q)(2)(viii)(A) and (B)
(q)(2)(ix)(i) and (ii)(q)(2)(ix)(A) and (B)
(q)(2)(x)(i) and (ii)(q)(2)(x)(A) and (B)
(q)(2)(x)(B)(A) through (C)
(q)(2)(x)(B)(1) through (3)
(q)(2)(xi)(i) through (iii)(q)(2)(xi)(A) through (C)
(q)(2)(xii)(i) and (ii)(q)(2)(xii)(A) and (B)
(q)(2)(xii)(B)(A) through (C)
(q)(2)(xii)(B)(1) through (3)
(q)(2)(xiii)(i) and (ii)(q)(2)(xiii)(A) and (B)
(q)(2)(xiv)(i) and (ii)(q)(2)(xiv)(A) and (B)
(q)(2)(xiv)(B)(A) and (B)
(q)(2)(xiv)(B)(1) and (2)
(q)(2)(xv)(i) and (ii)(q)(2)(xv)(A) and (B)
(q)(2)(xvi)(i) and (ii)(q)(2)(xvi)(A) and (B)
(q)(2)(xvii)(i) and (ii)(q)(2)(xvii)(A) and (B)
(q)(2)(xvii)(B)(A) through (C)
(q)(2)(xvii)(B)(1) through (3)
(q)(2)(xvii)(B)(3)(1) through (3)(q)(2)(xvii)(B)(3)(i) through (iii)
(q)(2)(xviii)(i) and (ii)(q)(2)(xviii)(A) and (B)
(q)(2)(xix)(i) and (ii)(q)(2)(xix)(A) and (B)
(q)(2)(xx)(i) through (vi)(q)(2)(xx)(A) through (F)
(q)(2)(xx)(B)(A) and (B)
(q)(2)(xx)(B)(1) and (2)

Bulletin No. 2019–43 999 October 21, 2019
Old ParagraphsNew Paragraphs
(q)(2)(xx)(B)(1)(1) and (2)(q)(2)(xx)(B)(1)(i) and (ii)
(q)(2)(xxi)(i) and (ii)(q)(2)(xxi)(A) and (B)
(q)(2)(xxi)(B)(A) through (C)
(q)(2)(xxi)(B)(1) through (3)
(q)(2)(xxii)(i) through (iii)(q)(2)(xxii)(A) through (C)
(q)(2)(xxii)(B)(A) through (C)
(q)(2)(xxii)(B)(1) through (3)
(q)(2)(xxii)(C)(A) through (C)
(q)(2)(xxii)(C)(1) through (3)
(q)(2)(xxiii)(i) through (iv)(q)(2)(xxiii)(A) through (D)
(q)(2)(xxiii)(B)(A) through (D)
(q)(2)(xxiii)(B)(1) through (4)
(q)(2)(xxiii)(C)(A) and (B)
(q)(2)(xxiii)(C)(1) and (2)
(q)(2)(xxiv)(i) and (ii)(q)(2)(xxiv)(A) and (B)
(q)(2)(xxv)(i) and (ii)(q)(2)(xxv)(A) and (B)
7. In each newly redesignated paragraph
listed in the first column, removing
the language in the second column and adding in its place the language
in the third column:
ParagraphRemoveAdd
(q)(2)(ii)(B)(2)paragraph (ii)(A) of this Example
2
paragraph (q)(2)(ii)(B)(1) of this section (paragraph (1) in the results in
this Example 2)
(q)(2)(iv)(B)
(2)(i)
paragraph (ii)(A) of this Example
4
paragraph (q)(2)(iv)(B)(1) of this section (paragraph (1) in the results
in this Example 4)
(q)(2)(vi)(B)(1)paragraph (ii)(B) of this Example
6
paragraph (q)(2)(vi)(B)(2) of this section (paragraph (2) in the results
in this Example 6)
(q)(2)(vi)(C)
paragraph (i) of this Example 6paragraph (q)(2)(vi)(A) of this section (the facts in this Example 6)
(q)(2)(xi)(C)
paragraph (i) of this Example 11paragraph (q)(2)(xi)(A) of this section (the facts in this Example 11)
(q)(2)(xx)(C)
paragraph (i) of this Example 20paragraph (q)(2)(xx)(A) of this section (the facts in this Example 20)
(q)(2)(xx)(C)
paragraph (ii) of this Example 20paragraph (q)(2)(xx)(B) of this section (the results in this Example 20)
(q)(2)(xx)(D)
paragraph (i) of this Example 20paragraph (q)(2)(xx)(A) of this section (the facts in this Example 20)
(q)(2)(xx)(D)
paragraph (ii) of this Example 20paragraph (q)(2)(xx)(B) of this section (the facts in this Example 20)
(q)(2)(xx)(E)
paragraph (i) of this Example 20paragraph (q)(2)(xx)(A) of this section (the facts in this Example 20)
(q)(2)(xx)(F)
paragraph (i) of this Example 20paragraph (q)(2)(xx)(A) of this section (the facts in this Example 20)
(q)(2)(xxii)(C)
introductory text
in paragraph (i) of this Example
22
paragraph (q)(2)(xxii)(A) of this section (the facts in this Example 22)
(q)(2)(xxiii)(C)
introductory text
paragraph (i) of this Example 23paragraph (q)(2)(xxiii)(A) of this section (the facts in this Example 23)
(q)(2)(xxiii)(C)
introductory text
paragraph (ii) of this Example 23paragraph (q)(2)(xxiii)(B) of this section (the results in this Example
23)
(q)(2)(xxiii)(D)
paragraph (i) of this Example 23paragraph (q)(2)(xxiii)(A) of this section (the facts in this Example 23)
(q)(2)(xxiv)(A)
in paragraph (i) of Example 6paragraph (q)(2)(vi)(A) of this section (the facts in Example 6)

October 21, 2019 1000 Bulletin No. 2019–43
8. Amend each paragraph listed in the
first column, by removing the lan-
guage in the second column and add-ing in its place the language in the
third column:
ParagraphRemoveAdd
(c)(1)(ii)(q)(2) of this section, Example 6(q)(2)(vi) of this section
(c)(4)(iv)paragraph (q)(2) of this section, Exam-
ples 1, 2, 3, and 5
paragraphs (q)(2)(i), (ii), (iii), and (v) of this section
(j)(1)(q)(2) of this section, Example 2(q)(2)(ii) of this section
(k)(1) introductory
language
(q)(2) of this section, Example 4(q)(2)(iv) of this section
(k)(1)(ii)(q)(2) of this section, Example 3(q)(2)(iii) of this section
(k)(1)(iii)(q)(2) of this section, Example 11(q)(2)(xi) of this section
(k)(6)(i)(q)(2) of this section, Example 5(q)(2)(v) of this section
(k)(6)(i)(q)(2) of this section, Example 6(q)(2)(vi) of this section
(k)(6)(ii)(q)(2) of this section, Example 7(q)(2)(vii) of this section
(k)(6)(iii)(q)(2) of this section, Example 8(q)(2)(viii) of this section
(k)(8)(q)(2) of this section, Example 9(q)(2)(ix) of this section
(k)(12)(i)(q)(2) of this section, Example 20(q)(2)(xx) of this section
(k)(14) introducto-
ry language
paragraph (q)(2), Examples 4, 6, 10, 12,
17, 21, and 23 of this section
paragraphs (q)(2)(iv), (vi), (x), (xii), (xvii), (xxi), and (xxiii)
of this section
(m)(1)(q)(2) of this section, Example 13(q)(2)(xiii) of this section
(n)(1)(q)(2) of this section, Example 14(q)(2)(xiv) of this section
(o)(1)(ii)(q)(2) of this section, Example 15(q)(2)(xv) of this section
(o)(1)(iii) introduc-
tory language
(q)(2) of this section, Example 16(q)(2)(xvi) of this section
(o)(5)(i)(A)(q)(2) of this section, Example 18(q)(2)(xviii) of this section
(o)(5)(i)(B)(q)(2) of this section, Example 19(q)(2)(ixx) of this section
(o)(5)(i)(C)(q)(2) of this section, Example 22(q)(2)(xxii) of this section
(o)(5)(i)(D)(q)(2) of this section, Example 22(q)(2)(xxii) of this section
(o)(6)(q)(2) of this section, Example 20(q)(2)(xx) of this section
(r)(2)(i)paragraph (q)(2) of this section, Exam-
ples 24 and 25
paragraphs (q)(2)(xxiv) and (xxv) of this section
9. Revising the heading of paragraph
(r).
10. Adding two sentences at the end of
paragraph (r)(1)(i).
The revision and addition read as fol-
lows:
§1.367(a)-8 Gain recognition agree-
ment requirements.
* * * * *
(k) * * *
(14) * * *
(ii) * * * If, as a result of the disposi-
tion or other event, a foreign corporation
acquires the transferred stock or securities
or, as applicable, substantially all the assets
of the transferred corporation, the condi-
tion of this paragraph (k)(14)(ii) is satisfied
only if the U.S. transferor owns at least five
percent (applying the attribution rules of
section 318, as modified by section 958(b),
without applying subparagraphs (A), (B),
and (C) of section 318(a)(3) so as to con-
sider the U.S. transferor as owning stock
which is owned by a person who is not a
United States person) of the total voting
power and the total value of the outstand-
ing stock of such foreign corporation.

Bulletin No. 2019–43 1001 October 21, 2019
* * * * *
(r) Applicability dates. (1) * * *
(i) * * * Paragraph (k)(14)(ii) of this
section applies to transfers occurring on
or after October 1, 2019, and to transfers
occurring before October 1, 2019, that re-
sult from an entity classification election
made under §301.7701-3 of this chapter
that is filed on or after October 1, 2019.
For transfers occurring before October 1,
2019, other than transfers occurring be-
fore October 1, 2019, that result from an
entity classification election made under
§301.7701-3 of this chapter that is filed on
or after October 1, 2019, a taxpayer may
apply paragraph (k)(14)(ii) of this section
to transfers occurring during the last tax-
able year of a transferee foreign corpo-
ration beginning before January 1, 2018,
and each subsequent taxable year of the
foreign corporation, provided that the tax-
payer and United States persons that are
related (within the meaning of section 267
or 707) to the taxpayer consistently apply
such paragraph with respect to all foreign
corporations.
* * * * *
Par. 5. Section 1.672(f)-2 is amended
by revising paragraphs (a) and (e) to read
as follows:
§1.672(f)-2 Certain foreign corpora-
tions.
(a) Application of general rule in this
section. Subject to the provisions of para-
graph (b) of this section, if the owner of
any portion of a trust upon application of
the grantor trust rules without regard to
section 672(f) is a controlled foreign cor-
poration or a passive foreign investment
company (as defined in section 1297), the
corporation will be treated as a domestic
corporation for purposes of applying the
rules of §1.672(f)-1. For purposes of this
section, the only controlled foreign corpo-
rations taken into account are those that
are controlled foreign corporations within
the meaning provided in section 957, de-
termined without applying subparagraphs
(A), (B), and (C) of section 318(a)(3) so
as to consider a United States person as
owning stock which is owned by a person
who is not a United States person.
* * * * *
(e) Applicability dates. Except as
provided in this paragraph (e), the rules
of this section apply to taxable years of
shareholders of controlled foreign cor-
porations and passive foreign investment
companies beginning after August 10,
1999, and taxable years of controlled
foreign corporations and passive foreign
investment companies ending with or
within such taxable years of the share-
holders. The provisions in paragraph (a)
of this section relating to the controlled
foreign corporations taken into account
for purposes of this section apply to tax-
able years of foreign corporations ending
on or after October 1, 2019, and taxable
years of United States shareholders in
which or with which such taxable years
of foreign corporations end. For taxable
years of foreign corporations ending be-
fore October 1, 2019, and taxable years
of United States shareholders in which or
with which such taxable years of foreign
corporations end, a taxpayer may apply
such provisions to the last taxable year
of a foreign corporation beginning before
January 1, 2018, and each subsequent tax-
able year of the foreign corporation, and
to taxable years of United States share-
holders in which or with which such tax-
able years of the foreign corporation end,
provided that the taxpayer and United
States persons that are related (within the
meaning of section 267 or 707) to the tax-
payer consistently apply such provisions
with respect to all foreign corporations.
Par. 6. Section 1.706-1 is amended by:
1. Revising paragraph (b)(6)(ii).
2. Revising the heading for paragraph
(b)(6)(v).
3. In paragraph (b)(6)(v)(A), revising
the first sentence and adding two sen-
tences after the first sentence.
The revisions and addition read as fol-
lows:
§1.706-1 Taxable years of partner and
partnership.
* * * * *
(b) * * *
(6) * * *
(ii) Definition of foreign partner. For
purposes of this paragraph (b)(6), a for-
eign partner is any partner that is not a
United States person (as defined in section
7701(a)(30)), except that a partner that is
a controlled foreign corporation (within
the meaning of section 957(a)) in which
a United States shareholder (as defined in
section 951(b)) owns (within the meaning
of section 958(a)) stock is not treated as a
foreign partner.
* * * * *
(v) Applicability dates. (A) * * * The
provisions of this paragraph (b)(6) (other
than paragraph (b)(6)(iii) of this section
and paragraph (b)(6)(ii) of this section to
the extent described in the next sentence)
apply to partnership taxable years, oth-
er than those of an existing partnership,
that begin on or after July 23, 2002. The
provisions in paragraph (b)(6)(ii) of this
section relating to controlled foreign cor-
porations apply to taxable years of foreign
corporations ending on or after October 1,
2019, and taxable years of United States
shareholders in which or with which such
taxable years of foreign corporations end.
For taxable years of foreign corporations
ending before October 1, 2019, and tax-
able years of United States shareholders in
which or with which such taxable years of
foreign corporations end, a taxpayer may
apply such provisions to the last taxable
year of a foreign corporation beginning
before January 1, 2018, and each subse-
quent taxable year of the foreign corpora-
tion, and to taxable years of United States
shareholders in which or with which such
taxable years of the foreign corporation
end, provided that the taxpayer and United
States persons that are related (within the
meaning of section 267 or 707) to the tax-
payer consistently apply such provisions
with respect to all foreign corporations. *
* *
* * * * *
Par. 7. Section 1.863-8 is amended by:
1. In paragraph (b)(2)(ii), revising the
first sentence and adding a sentence
at the end of the paragraph.
2. Revising paragraph (h).
The revisions and addition read as fol-
lows:
§1.863-8 Source of income derived
from space and ocean activity under sec-
tion 863(d).
* * * * *
(b) * * *
(2) * * *
(ii) * * * Space and ocean income de-
rived by a controlled foreign corporation
(CFC) is income from sources within the
United States. * * * For purposes of this
section, a controlled foreign corporation
has the meaning provided in section 957,
determined without applying subpara-
graphs (A), (B), and (C) of section 318(a)
(3) so as to consider a United States per-

October 21, 2019 1002 Bulletin No. 2019–43
son as owning stock which is owned by a
person who is not a United States person.
* * * * *
(h) Applicability dates. Except as pro-
vided in this paragraph (h), this section
applies to taxable years beginning on or
after December 27, 2006. The provisions
in paragraph (b)(2)(ii) of this section re-
lating to the meaning of CFC apply to tax-
able years of foreign corporations ending
on or after October 1, 2019. For taxable
years of foreign corporations ending be-
fore October 1, 2019, a taxpayer may ap-
ply such provisions to the last taxable year
of a foreign corporation beginning before
January 1, 2018, and each subsequent tax-
able year of the foreign corporation, pro-
vided that the taxpayer and United States
persons that are related (within the mean-
ing of section 267 or 707) to the taxpayer
consistently apply such provisions with
respect to all foreign corporations.
Par. 8. Section 1.863-9 is amended by
revising paragraphs (b)(2)(ii) and (l) to
read as follows:
§1.863-9 Source of income derived
from communications activity under sec-
tion 863(a), (d), and (e).
* * * * *
(b) * * *
(2) * * *
(ii) International communications in-
come derived by a controlled foreign cor-
poration. International communications
income derived by a controlled foreign
corporation (CFC) is one-half from sourc-
es within the United States and one-half
from sources without the United States.
For purposes of this section, a controlled
foreign corporation has the meaning pro-
vided in section 957, determined without
applying subparagraphs (A), (B), and
(C) of section 318(a)(3) so as to consid-
er a United States person as owning stock
which is owned by a person who is not a
United States person.
* * * * *
(l) Applicability dates. Except as oth-
erwise provided in this paragraph (l), this
section applies to taxable years beginning
on or after December 27, 2006. The provi-
sions in paragraph (b)(2)(ii) of this section
relating to the meaning of CFC apply to
taxable years of foreign corporations end-
ing on or after October 1, 2019. For tax-
able years of foreign corporations ending
before October 1, 2019, a taxpayer may
apply such provisions to the last taxable
year of a foreign corporation beginning
before January 1, 2018, and each subse-
quent taxable year of the foreign corpora-
tion, provided that the taxpayer and United
States persons that are related (within the
meaning of section 267 or 707) to the tax-
payer consistently apply such provisions
with respect to all foreign corporations.
Par. 9. Section 1.904-5, as proposed to
be amended at 83 FR 63200 (December 7,
2018), is further amended by:
1. Revising paragraph (a)(4)(i).
2. Revising the first sentence of para-
graph (a)(4)(vi).
3. Revising paragraph (o).
The revisions read as follows:
§1.904-5 Look-through rules as ap-
plied to controlled foreign corporations
and other entities.
(a) * * *
(4) * * *
(i) The term controlled foreign corpo-
ration has the meaning given such term
by section 957 (taking into account the
special rule for certain captive insurance
companies contained in section 953(c)),
determined without applying subpara-
graphs (A), (B), and (C) of section 318(a)
(3) so as to consider a United States per-
son as owning stock which is owned by a
person who is not a United States person.
* * * * *
(vi) The term United States sharehold-
er has the meaning given such term by
section 951(b) (taking into account the
special rule for certain captive insurance
companies contained in section 953(c)),
determined without applying subpara-
graphs (A), (B), and (C) of section 318(a)
(3) so as to consider a United States per-
son as owning stock which is owned by a
person who is not a United States person,
except that for purposes of this section,
a United States shareholder includes any
member of the controlled group of the
United States shareholder. * * *
* * * * *
(o) Applicability dates. Except as oth-
erwise provided in this paragraph (o), this
section applies to taxable years that both
begin after December 31, 2017, and end
on or after December 4, 2018. Paragraphs
(a)(4)(i) and (vi) of this section apply to
taxable years of foreign corporations end-
ing on or after October 1, 2019, and tax-
able years of United States persons ending
on or after October 1, 2019. For taxable
years of foreign corporations ending be-
fore October 1, 2019, and taxable years of
United States persons ending before Oc-
tober 1, 2019, a taxpayer may apply such
provisions to the last taxable year of a for-
eign corporation beginning before January
1, 2018, and each subsequent taxable year
of the foreign corporation, and to taxable
years of United States shareholders in
which or with which such taxable years of
the foreign corporation end, provided that
the taxpayer and United States persons
that are related (within the meaning of
section 267 or 707) to the taxpayer consis-
tently apply such provisions with respect
to all foreign corporations.
Par. 10. Section 1.958-2 is amended by:
1. Removing and reserving paragraph
(d)(2).
2. In paragraph (g), designating Exam-
ples 1 through 6 as paragraphs (g)(1)
through (6), respectively.
3. In newly designated paragraphs (g)
(1) and (2), removing the language
“paragraph (c)(1)(iii) and (2) of this
section” and adding “paragraphs (c)
(1)(iii) and (c)(2) of this section” in
its place.
4. Revising newly designated paragraph
(g)(4).
5. Adding paragraph (h).
6. Removing the parenthetical authority
citation at the end of the section.
The revisions and addition read as fol-
lows:
§1.958-2 Constructive ownership of
stock.
* * * * *
(g) * * *
(4) Example 4. Foreign corporation U owns 100
percent of the one class of stock in domestic corpora-
tion V and also 100 percent of the one class of stock
in foreign corporation W. Because more than 50 per-
cent in value of the stock of V Corporation is owned
by its sole shareholder, U Corporation, V Corpora-
tion is considered under paragraph (d)(1)(iii) of this
section as owning the stock owned by U Corporation
in W Corporation, and accordingly is a United States
shareholder of W Corporation.
* * * * *
(h) Applicability date. Paragraphs (d)
(2) and (g)(4) of this section apply to tax-
able years of foreign corporations ending
on or after October 1, 2019, and taxable
years of United States shareholders in
which or with which such taxable years
of foreign corporations end. For taxable
years of foreign corporations ending be-

Bulletin No. 2019–43 1003 October 21, 2019
fore October 1, 2019, and taxable years
of United States shareholders in which or
with which such taxable years of foreign
corporations end, a taxpayer may apply
such provisions to the last taxable year
of a foreign corporation beginning before
January 1, 2018, and each subsequent tax-
able year of the foreign corporation, and
to taxable years of United States share-
holders in which or with which such tax-
able years of the foreign corporation end,
provided that the taxpayer and United
States persons that are related (within the
meaning of section 267 or 707) to the tax-
payer consistently apply such provisions
with respect to all foreign corporations.
Par. 11. Section 1.1297-1, as proposed
to be added at 84 FR 33120 (July 11,
2019), is amended by revising paragraphs
(d)(1)(iii)(A) and (g)(1) to read as follows:
§1.1297-1 Definition of passive foreign
investment company.
* * * * *
(d) * * *
(1) * * *
(A) Controlled foreign corporation.
For purposes of section 1297(e)(2)(A), the
term controlled foreign corporation has
the meaning provided in section 957, de-
termined without applying subparagraphs
(A), (B), and (C) of section 318(a)(3) so
as to consider a United States person as
owning stock which is owned by a person
who is not a United States person.
* * * * *
(g) * * *
(1) Paragraph (d)(1)(iii)(A) of this sec-
tion. Paragraph (d)(1)(iii)(A) of this sec-
tion applies to taxable years of sharehold-
ers ending on or after October 1, 2019.
For taxable years of shareholders ending
before October 1, 2019, a shareholder
may apply paragraph (d)(1)(iii)(A) of this
section to the last taxable year of a foreign
corporation beginning before January 1,
2018, and each subsequent taxable year of
the foreign corporation, provided that the
shareholder and United States persons that
are related (within the meaning of section
267 or 707) to the taxpayer consistently
apply such paragraph with respect to all
foreign corporations.
* * * * *
Par. 12. Section 1.6049-5 is amended
by revising paragraphs (c)(5)(i)(C) and (g)
to read as follows:
§1.6049-5 Interest and original issue
discount subject to reporting after Decem-
ber 31, 1982.
* * * * *
(c) * * *
(5) * * *
(i) * * *
(C) A controlled foreign corporation
within the meaning of section 957, deter-
mined without applying subparagraphs
(A), (B), and (C) of section 318(a)(3) so
as to consider a United States person as
owning stock which is owned by a person
who is not a United States person.
* * * * *
(g) Applicability dates. Except as oth-
erwise provided in this paragraph (g), this
section applies to payments made on or af-
ter January 6, 2017. (For payments made
after June 30, 2014, and before January 6,
2017, see this section as in effect and con-
tained in 26 CFR part 1, as revised April
1, 2016. For payments made after Decem-
ber 31, 2000, and before July 1, 2014, see
this section as in effect and contained in
26 CFR part 1, as revised April 1, 2013.)
Paragraph (c)(5)(i)(C) of this section ap-
plies to payments made on or after Octo-
ber 1, 2019. For payments made before
October 1, 2019, a taxpayer may apply
paragraph (c)(5)(i)(C) of this section for
payments during the last taxable year of a
foreign corporation beginning before Jan-
uary 1, 2018, and each subsequent taxable
year of the foreign corporation, provided
that the taxpayer and United States per-
sons that are related (within the meaning
of section 267 or 707) to the taxpayer
consistently apply such paragraph with re-
spect to all foreign corporations.
Kirsten Wielobob,
Deputy Commissioner for Services
and Enforcement.
(Filed by the Office of the Federal Register on Oc-
tober 1, 2019, 8:45 a.m., and published in the issue
of the Federal Register for October 2, 2019, 84 F.R.
52398)

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI
—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2019–43 i October 21, 2019

Numerical Finding List
1
Bulletin 2019–43
AOD:
2019-02, 2019-41 I.R.B. 806
2019-03, 2019-42 I.R.B. 934
Announcements:
2019-07, 2019-27 I.R.B. 62
2019-08, 2019-32 I.R.B. 621
Notices:
2019-12, 2019-27 I.R.B. 57
2019-40, 2019-27 I.R.B. 59
2019-41, 2019-28 I.R.B. 256
2019-42, 2019-29 I.R.B. 352
2019-27, 2019-31 I.R.B. 484
2019-43, 2019-31 I.R.B. 487
2019-24, 2019-31 I.R.B. 489
2019-45, 2019-32 I.R.B. 593
2019-48, 2019-36 I.R.B. 678
2019-46, 2019-37 I.R.B. 695
2019-49, 2019-37 I.R.B. 699
2019-50, 2019-37 I.R.B. 700
2019-47, 2019-39 I.R.B. 731
2019-51, 2019-41 I.R.B. 866
2019-52, 2019-41 I.R.B. 869
2019-54, 2019-42 I.R.B. 935
2019-55, 2019-42 I.R.B. 937
Proposed Regulations:
REG-105476-18, 2019-27 I.R.B. 63
REG-106282-18, 2019-28 I.R.B. 259
REG-101828-19, 2019-29 I.R.B. 412
REG-106877-18, 2019-30 I.R.B. 441
REG-121508-18, 2019-30 I.R.B. 456
REG-105474-18, 2019-31 I.R.B. 493
REG-118425-18, 2019-31 I.R.B. 539
REG-130700-14, 2019-36 I.R.B. 681
REG-101378-19, 2019-37 I.R.B. 702
REG-104554-18, 2019-39 I.R.B. 737
REG-104870-18, 2019-39 I.R.B. 754
REG-102508-16, 2019-40 I.R.B. 777
REG-125710-18, 2019-40 I.R.B. 785
REG-106808-19, 2019-41 I.R.B. 912
REG-136401-18, 2019-42 I.R.B. 960
REG-104223-18, 2019-43 I.R.B. 989
Revenue Rulings:
2019-16, 2019-28 I.R.B. 96
2019-17, 2019-32 I.R.B. 583
2019-18, 2019-35 I.R.B. 668
2019-19, 2019-36 I.R.B. 674
2019-20, 2019-36 I.R.B. 675
Revenue Rulings:—Continued
2019-21, 2019-38 I.R.B. 708
2019-22, 2019-40 I.R.B. 776
2019-23, 2019-41 I.R.B. 807
Revenue Procedures:
2019-24, 2019-29 I.R.B. 353
2019-28, 2019-32 I.R.B. 596
2019-29, 2019-32 I.R.B. 620
2019-30, 2019-33 I.R.B. 638
2019-31, 2019-33 I.R.B. 643
2019-32, 2019-33 I.R.B. 659
2019-33, 2019-34 I.R.B. 662
2019-34, 2019-35 I.R.B. 669
2019-23, 2019-38 I.R.B. 725
2019-36, 2019-38 I.R.B. 729
2019-37, 2019-39 I.R.B. 731
2019-35, 2019-41 I.R.B. 870
2019-38, 2019-42 I.R.B. 942
2019-39, 2019-42 I.R.B. 945
2019-40, 2019-43 I.R.B. 982
Treasury Decisions:
9863, 2019-27 I.R.B. 1
9864, 2019-27 I.R.B. 6
9865, 2019-27 I.R.B. 27
9867, 2019-28 I.R.B. 98
9868, 2019-28 I.R.B. 252
9866, 2019-29 I.R.B. 261
9861, 2019-30 I.R.B. 433
9869, 2019-30 I.R.B. 438
9862, 2019-31 I.R.B.
477
9872, 2019-32 I.R.B. 585
9871, 2019-33 I.R.B. 624
9873, 2019-33 I.R.B. 630
9874, 2019-41 I.R.B. 809
9875, 2019-41 I.R.B. 856
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.
October 21, 2019 ii Bulletin No. 2019–43

Bulletin No. 2019–43 iii October 21, 2019
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2019–43
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

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