REG-100956-19 Public Hearing - Outline of Topics

Abstract

The Treasury and IRS issued proposed regulations [REG-100956-19] in December 2019 regarding §§863(b) and 865(e). The proposed regulations implement the TCJA's amendment to source the sale of inventory property that is produced and sold by the taxpayer at the location(s) where production occurs.

This Outline of Topics includes background and comments on:

- Need to Expand Production Sourcing to Include All Group Members

- Prop. Reg. §1.865-3 – “Purchased and Sold” or “Produced and Sold”

- Need to Re-Think Approach to Allocation in Prop. Reg. §1.863-3(c)

Keywords: Source, Sourcing of Income, effectively connected income, ECI, 863, 865, inbound, International taxation

JEL Classification: H21, H25, K34, E62