Groups Seek Changes in Tax Election for Currency Gains, Losses

The Treasury Department and the IRS should revise some details of a proposed election that companies can make relating to how their subsidiaries treat foreign-currency gains and losses, two groups said.

The proposal for companies’ controlled foreign corporations would “reduce complexity and improve administrability for certain taxpayers,” but it should be improved, the Tax Section of the New York State Bar Association said in a report Sunday.

The guidance doesn’t allow enough time for companies to analyze the election’s impact and integrate it into orderly tax return preparation processes, the National Foreign Trade Council said in ...