IRS Vows to Issue Rules on Previously Taxed Income by Year’s End

A long-delayed set of proposed regulations on the tax treatment of previously taxed income should be issued by the end of the year, an IRS official said Wednesday.

“We are very, very confident” in that timing for the regulations on previously taxed earnings and profits, or PTEP, said Paul McLaughlin, special counsel in the IRS Office of Chief Counsel (International), speaking at the Philadelphia Tax Summit.

PTEP is foreign income brought back to the US after it’s already been taxed by the US government. Regulations on how to treat it are needed to avoid double taxation, and the IRS ...