The IRS is working to finalize regulations this year on how a company’s subsidiary calculates its foreign-currency gains and losses, a Treasury Department official said Monday.
The agency proposed regulations in November 2023 that deal with how qualified business units subject to tax code Section 987 handle currency transactions and gains and losses in their own taxable income or loss.
The regulations require these subsidiaries to use the “foreign exchange exposure pool” method to determine currency gains and losses, which is different from the “earnings and capital method” that has been in use since 1991. There have been multiple delays ...
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