Daily Tax Report: International

Treasury Aims Tax Fix to Keep $40 Billion R&D Spending in U.S.

Dec. 2, 2019, 11:45 PM

The Treasury Department offered some relief to companies that lost foreign tax credits after investing in research and development operations in the U.S.

In proposed rules (REG-105495-19) released Dec. 2, Treasury and the IRS aim to undo a problem created by interaction of outdated expense allocation rules and a new category of foreign income created in the 2017 tax law.

R&D spending of $40 billion by 2,500 taxpayers could have been impacted by the problem, the IRS said, citing 2014 data.

The 2017...

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