IRS Issues Rules on Intellectual Property Repatriations (2)

The IRS released rules affecting intangible property repatriations, or transactions in which companies bring intellectual property like patents and trademarks back to the U.S.

The proposed rules would turn off the application of 367(d) in certain instances to help avoid “excessive” US taxation on income related to the repatriated intangible property.

“The proposed regulations, specifically recognizing the current, troubling potential for excessive taxation and disincentivizing repatriation of IP, provides welcome clarification by specifically terminating the Section 367(d) annual inclusion,” said Sharon Katz-Pearlman, a shareholder at Greenberg Traurig.

“They also specifically note that the new guidance obviates the need ...