IRS Combines Elections for Foreign Income Regime Opt-Out (3)

The IRS has proposed combining two sets of rules tied to a provision that will allow some companies to opt out of a tax on a new category of foreign income.

The agency released final high-tax exclusion rules (T.D. 9902; RIN:1545–BP15) on Monday. The IRS also issued proposed rules (RIN: 1545-BP62) that modify the final rules under Section 954(b)(4), regarding high-taxed Subpart F income, and Section 964.

The high-tax exclusion gives companies the option to elect out of the 2017 tax law’s provision on two types of offshore income—global intangible low-taxed income and Subpart F income—if they ...