Home      Login

Abstract: 

The IRS has for many years sought to curtail foreign tax credit related transactions—many involving banks or other financial institutions—that it has deemed abusive. In furtherance of this objective, it has, among other things, undertaken multiple regulation projects, issued various notices and field directives, and pursued litigation against several taxpayers. In recent months, the IRS has made significant advances in this ongoing effort, issuing final regulations that deny foreign tax credits claimed in connection with certain “structured passive investment arrangements,” and achieving a court victory in a case involving a foreign tax credit generator transaction.

Keywords:  IRC Sec. 901; Treas. Reg. Sec. 1.901-2(e)(5)(1v); structured passive investment arrangements (SPIAs); economic substance doctrine; Mayo Foundation v. United States; Pritired 1 LLC v. United States

Affiliations:  1: King & Spalding LLP; 2: King & Spalding LLP.