IRS Issues Final Rules on Intangible Property Repatriations (2)

The IRS finalized regulations Wednesday that aim to prevent excessive taxation in certain cases when intangible property such as patents or trademarks is brought back to the US.

The regulations (TD 9994; RIN 1545-BP55) turn off the application of Section 367(d), when the property is transferred to a qualified US person after it previously was transferred to a foreign corporation. That section governs the way companies include income following the transfer of intangible property overseas.

If that provision were applied in cases where the recipient of the property is already subject to US taxes on income from ...