IRS Issues Correction in Proposed Foreign Currency Rules (1)

The IRS released a correction to a proposed rule on foreign currency Tuesday to fix errors in the preamble that it said could mislead readers.

The agency released the proposed rules (RIN 1545-BO07; REG-132422-17) Nov. 9, giving guidance on how “qualified business units” subject to tax code Section 987 should handle currency transactions and gains and losses in their own taxable income or loss.

The proposed regulations looked to simplify rules around how companies’ subsidiaries treat foreign currency and include an election to treat all items of a qualified business unit as marked items, subject to a loss ...