Page 775 - Large Business IRS Training Guides

Anti-abuse Rules:
In General

the general rule in Treas. Reg. §1.965-4(b)(1), certain transactions
• Under
purposes of determining the section 965 elements of
are disregarded for
shareholder if the following conditions are met:
a U.S.

• The transaction occurs, in whole or in part, on or after 11/2/17;

• The transaction is undertaken with a principal
purpose of changing the
a section 965 element of the U.S. shareholder; and
amount of

absent the anti-abuse rule, change the amount of a
• The transaction would,

section 965 element of the U.S. shareholder.

shareholder’s section 965(a) inclusion
• The section 965 elements are a U.S.
amount, its aggregate foreign cash position,
and the amount of deemed paid
foreign taxes
that may be claimed with respect to a section 965(a) inclusion.

• A change in the amount of a section 965 element is a ↓decrease in the section
965(a)
inclusion amount, a ↓decrease in the aggregate foreign cash position, or
an ↑increase in the deemed paid foreign taxes
with respect to 965(a) inclusion.

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