Kerr Russell attorney, Patrick Haddad, discusses recent proposals from the IRS to the Internal Revenue Code on the determination of ownership in a PFIC for purposes of Code Section 1297(a).
On 10 July 2019 the US Department of Treasury, Internal Revenue Service, proposed regulations under the Internal Revenue Code on the determination of ownership in a passive foreign investment company (PFIC) for purposes of Code Section 1297(a). They also address the treatment of certain income received or accrued by a foreign corporation and assets held by a foreign corporation. The proposed regulations furnish guidance on when a foreign corporation is a qualifying insurance corporation (QIC) under Section 1297(f) of the Code and on income and assets that a QIC excludes from passive income and assets pursuant to Code Section 1297(b)(2)(B). This is referred to as the “PFIC insurance exception”. The proposed regulations address the requirements that a foreign corporation must satisfy to qualify for the PFIC insurance exception
The full article with more information on the potential impact of these regulations can be found HERE on page 24.
Patrick Haddad has over 28 years of experience in the areas of corporate law, health care law, insurance and securities. He advises a wide array of mortgage originator and insurance clients, including agents, captive, casualty, property, professional liability, health and worker’s compensation insurers, third party administrators, and self-funded health plans. Patrick is chairperson of the firm’s Securities Law Practice Group, co-chairperson of the firm’s Health Care Practice Group, and the firm’s Co-General Counsel.
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