On December 15, 2011, the U.S. Department of the Treasury and
the Internal Revenue Service released final regulations addressing
the application of the foreign base company sales income rules of
subpart F to controlled foreign corporations with branches or
similar establishments. These regulations finalize prior temporary
regulations, with three clarifying changes. Further guidance in the
area is also in the works.
Overview
On December 15, 2011, the U.S. Department of the Treasury
(Treasury) and the Internal Revenue Service (IRS) released final
regulations addressing the application of the foreign base company
sales income (FBCSI) rules of subpart F to controlled foreign
corporations (CFCs) with branches or similar establishments (T.D.
9563, published in the Federal Register on December 19,
2011). These regulations finalize 2008 temporary
regulations that had been set to expire before the end of
2011. The new regulations make three clarifying changes
to the 2008
