Treasury Urged to Ease Documentation in Foreign-Income Guidance

The Treasury Department and the IRS should modify and simplify a documentation requirement that is part of guidance on how companies will move to a new approach to counting their share of subsidiaries’ foreign income, an accounting group said.

The agencies should revise guidance issued in December on the transition to the new way companies include their pro rata share of a controlled foreign corporation’s Subpart F income as part of their own income, the American Institute of CPAs said in a Feb. 4 letter. CFCs are foreign corporations that are more than 50%-owned by US shareholders; Subpart F ...