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Guidance Under Sections 951A and 954 Regarding Income Subject to a High Rate of Foreign Tax; Correcting Amendment

---
identifier: "/us/fr/2020-20419"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Guidance Under Sections 951A and 954 Regarding Income Subject to a High Rate of Foreign Tax; Correcting Amendment"
title_number: 0
title_name: "Federal Register"
section_number: "2020-20419"
section_name: "Guidance Under Sections 951A and 954 Regarding Income Subject to a High Rate of Foreign Tax; Correcting Amendment"
positive_law: false
currency: "2020-10-09"
last_updated: "2020-10-09"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "2020-20419"
document_type: "rule"
publication_date: "2020-10-09"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
cfr_references:
  - "26 CFR Part 1"
rin: "1545-BP15"
fr_citation: "85 FR 64040"
fr_volume: 85
docket_ids:
  - "TD 9902"
effective_date: "2020-10-09"
fr_action: "Correcting amendments."
---

#  Tested Income and tested loss.

**AGENCY:**

Internal Revenue Service (IRS), Treasury.

**ACTION:**

Correcting amendments.

**SUMMARY:**

This document contains corrections to Treasury Decision 9902, which was published in the *Federal Register* on Thursday, July 23, 2020. Treasury Decision 9902 contained final regulations under the global intangible low-taxed income and subpart F income provisions of the Internal Revenue Code regarding the treatment of income that is subject to a high rate of foreign tax.

**DATES:**

This correction is effective on October 9, 2020.

**FOR FURTHER INFORMATION CONTACT:**

Jorge M. Oben or Larry R. Pounders at (202) 317-6934 (not a toll-free number).

**SUPPLEMENTARY INFORMATION:**

**Background**

The final regulations (TD 9902) that are the subject of this correction are issued under section 951A of the Code.

**Need for Correction**

As published, the final regulations (TD 9902) contain errors that need to be corrected.

**List of Subjects in 26 CFR Part 1**

Income taxes, Reporting and recordkeeping requirements.

**Correction of Publication**

Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:

**PART 1—INCOME TAXES**

**26 CFR Part 1**

*Paragraph 1.* The authority citation for part 1 continues to read in part as follows:

**Authority:**

26 U.S.C. 7805 * * *

**26 CFR Part 1**

*Par. 2.* Section 1.951A-2 is amended by adding a sentence at the end of paragraph (c)(7)(viii)(E)( *2* )( *ii* ) to read as follows:

§ 1.951A-2

(c) * * *

(7) * * *

(viii) * * *

(E) * * *

( *2* ) * * *

( *ii* ) * * * Notwithstanding the rule set forth in this paragraph (c)(7)(viii)(E)( *2* )( *ii* ), a controlled foreign corporation is not a member of a CFC group if, as of the close of its CFC inclusion year, the controlled foreign corporation does not have a controlling domestic shareholder.

Crystal Pemberton,

Senior Federal Register Liaison, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).