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International Tax Blog - New and Interesting International Tax Issues


A Tangled Web of Definitions

2023-01-04

a tangled spider web

Treasury regulations published over the past few years have been heavy on definitions:

  • Treas. Reg. §1.960-1(b) defines 38 terms
  • Treas. Reg. §1.245A(d)-1(c) defines 30 terms
  • Treas. Reg. §1.861-20(b) defines 26 terms
  • Treas. Reg. §1.267A-5(a) defines 25 terms
  • Treas. Reg. §1.904-4(f)(3) defines 13 terms
  • Treas. Reg. §1.861-20(d)(3)(v)(E) defines 9 terms
  • Treas. Reg. §1.861-13(b) defines 7 terms

Many of the terms are defined by cross reference to definitions found elsewhere in the regulations:

  • 23 of the 38 terms defined in Treas. Reg. §1.960-1(b) refer to definitions found elsewhere
  • 19 of the 30 terms defined in Treas. Reg. §1.245A(d)-1(c) refer to definitions found elsewhere
  • 10 of the 25 terms defined in Treas. Reg. §1.267A-5(a) refer to definitions found elsewhere

Treas. Reg. §1.245A(d)-1(c) defines "inclusion percentage" and "Section 904 category" by cross referencing Treas. Reg. §1.960-1(b). But those two definitions just cross reference to other regulations.

Treas. Reg. §1.245A(d)-1(c)(17) defines the term "remittance" by cross referencing Treas. Reg. §1.860-20(d)(3)(v)(E)(8). However, Treas. Reg. §1.904-4(f)(3)(xii) has its own definition of remittance.

We created a chart showing the tangled web of the cross references between the different regulations.

Tags: 960 Deemed Paid Foreign Taxes, 861 Source of Income, 901 Foreign Tax Credits