WASHINGTON, Dec. 15 -- Internal Revenue Service has issued a proposed rule called: Income of Foreign Governments and of International Organizations.
The proposed rule was published in the Federal Register on Dec. 15 by Frank J. Bisignano, Chief Executive Officer.
Summary: This document contains proposed regulations relating to the taxation of the income of foreign governments from investments in the United States. In particular, these proposed regulations provide guidance for determining when an acquisition of debt by a foreign government is considered to be commercial activity, and when a foreign government has effective control of an entity engaged in commercial activities. These proposed regulations will affect foreign governments that...