IRS T.D.: Application of Downward Attribution of U.S. Persons Owning CFC Stock (IRC §958)

Downward attribution for ownership determination of controlled foreign corporations (CFCs) after repeal of tax code Section 958(b)(4), the IRS provided in final regulations released September 21. After the repeal of Section 958(b)(4) in the 2017 TCJA, stock of a foreign corporation owned by a foreign person can be attributed to a U.S. person under Section 318(a)(3) for various purposes, including for purposes of determining whether a U.S. person is a U.S. shareholder of the foreign corporation and, therefore, whether the foreign corporation is a controlled foreign corporation (within the meaning of Section 957) (CFC). ...