IRS T.D.: Definition of Domestically Controlled Qualified Investment Entities (IRC §897)

Final regulations that address the determination of whether a qualified investment entity is domestically controlled, including the treatment of qualified foreign pension funds for this purpose, the IRS released. These regulations: (1) finalize the proposed regulations, REG-100442-22 (Dec. 29, 2022), other than those portions addressing the I.R.C. §892 exemption (which will be addressed in a separate rulemaking); (2) provide guidance as to when foreign persons are considered to hold directly or indirectly stock in a qualified investment entity; and (3) primarily affect foreign persons that own stock in a qualified investment entity that would be a United States real property ...