Tax Law Error Hitting Multinationals Needs Congress as IRS Punts (1)

It’s now up to Congress to fix a tax law error that has meant multinationals and private equity firms are reporting and paying taxes on some previously exempted overseas investments.

IRS proposed rules (REG-104223-18) would ease the reporting requirements on U.S. shareholders gathering information on their investments in potentially hundreds of overseas foreign corporations. But the relief falls short of fixing the glitch that is hitting multinationals like Coca-Cola Co.

Bills from Rep. John Lewis (D-Ga.) and Sen. Johnny Isakson (R-Ga.) (H.R. 4509, S.2589) would fix the problem by reinstating a rule ...