AICPA Comments on IRS Currency Transaction Proposal


The Institute’s tax executive committee submitted recommendations on IRS-proposed revisions to section 987 of the Internal Revenue Code that require a taxpayer to recognize exchange gain or loss—upon receiving a remittance from a qualified business unit (QBU)—by apportioning its basis in the QBU to each remittance and then recognizing exchange gain or loss based on the difference between the value of the remittance and the basis apportioned to it ( www.cpa2biz.com/ResourceCenters/Tax/International/987regs.htm ). Among its other suggestions, the committee recommended the revised regulations provide that no exchange gain or loss be recognized on remittances of capital from a QBU and that they adopt the “four-pool” approach of regulations section 1.987-5 to determine whether transfers are remittances of earnings or capital.

SPONSORED VIDEO

How KPMG is innovating the audit

KPMG's global audit team is using cognitive technology and alliances with tech and university partners to drive audit innovation. See how.

SPONSORED REPORT

States look to unclaimed property for revenue

This free report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.