A list of Jerry’s published articles on U.S. and International Taxation in national journals can be obtained upon request.

Inbound Investment By Foreign Companies In Conducting Business Operations In the United States: "Branching-In the U.S.A."

The extent of the foreign company's geographical presence or "footprint" in the United States must be evaluated as a preliminary matter as well as current and/or anticipated sources of U.S. and non-U.S. source income from such business operations and associated enterprises. That includes careful review of Section 864(b) (trade or business) as well as treaty provisions, to the extent relevant, with respect to the presence of a "permanent establishment' (or not) in the U.S. Transfer pricing r… Read More
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The One Big Beautiful Bill Act Repeals Downward Stock Attribution Rule But Enacts New Section 951B To Deny Blocker Treatment For Certain U.S. Shareholders of a Foreign Controlled Corporation

The problem with the repeal of Section 954(b)(4) in TCJA 2017 was its width. It was too broad in its application and in some instances resulted in an unfair outcome or burden on U.S. minority shareholder groups engaged in investing with foreign investors in a foreign parent corporation that might own one or more controlled foreign subsidiaries. The required downward attribution rule in Section 318(a)(2) would cause such U.S. minority group to be treated as U.S. shareholders in a controlled forei… Read More
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Part 2 - Congress Enacts the "One Big Beautiful Bill Act: Key Business and International Tax Provisions"

For a U.S. shareholder of a controlled foreign corporation (CFC) that is a domestic corporation, the tax rate is 21% as previously mentioned. There are direct and substantial tax incentives for owners of U.S. business to engage in foreign business operations and sales/services activities through domestic corporations or through certain partnership structures in order to benefit from the lower tax rates and deductions for foreign source business income. The OBBB does not change the new cross-bord… Read More
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Part 1 - Congress Enacts the "One Big Beautiful Bill Act: Key Business and International Tax Provisions"

Important Tax Provisions of the Tax Cuts and Jobs Act of 2017 Made Permanent: Part One Business Tax Provisions This is the first of two posts on the One Big Beautiful Bill Act that was just passed by the Congress and signed into law by President Trump on July 4, 2025. The first post identifies some of the more important provisions that affect owners of privately owned business. The second post, which follows shortly, will focus on the international tax law provisions of the OBBB. A more in-depth… Read More
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Tax Court Allows 100% Participation Exemption Deduction in Varian Medical Systems, Inc. And Explains Scope of Section 245A

The Tax Court asked to be briefed by the parties on the Supreme Court's decision in Loper Bright, which repealed the long-standing Chevron doctrine, the Court rejected the government's view that the regulations under Section 78 precluded application of Section 245A. Under Skidmore v. Swift & Co, 323 US 134 (1944) analysis, the Court viewed the regulation was not the best view on the proper statutory interpretation to be given to Section 245A read in conjunction with Section 78 for the year in… Read More
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Proposed Regulations Address Distributions of Previously Taxed Income (PTEP) From Controlled Foreign Corporations

The Proposed Regulations issued in November, 2024 are 342 pages in length and present an uphill climb for tax counsel and tax advisors of US persons investing in stock of foreign corporations. The tracking rules require each CFC and its US shareholders to maintain, on an annual basis, ten accounts that cover previously included income, crediting of foreign income taxes, tracking increases to stock basis for PTEP and decreasing PTEP for distributions of PTEP against stock basis. That is just the… Read More
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Will Congress Help President Trump Preserve The Tax Benefits From the Tax Cuts and Jobs Act of 2017?

TCJA 2017 International Tax Law Reforms: Making the U.S. More Competitive in a Global Economy The international tax law changes enacted into law by the TCJA 2017 reflected the adoption of a territorial based system for income taxation of U.S. companies, including U.S. subsidiaries of foreign corporations. Read More
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While Congress is Considering Extending The Tax Cuts and Jobs Act of 2017 Why Doesn't It Also Repeal Section 461(l)?

Section 461(l) is just bad tax policy. While deductions granted are a matter of legislative grace by act of Congress, in reality Section 461(l) can, as a matter of economic reality, impose income tax on “gross receipts” for a taxpayer actively engaged in business which generate an operating loss in excess of the threshold amount for which the taxpayer is otherwise not subject to any other limitation that Congress did not previously prescribe. Read More
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Tax Court Upholds Blocked Income Regulation in 3M Companies v. Commissioner. Case appealed by taxpayer to the Eighth Circuit Court of Appeals.

In 3M Companies & Subsidiaries, Inc. v. Commissioner, the Tax Court, in a 9-8 majority decision issued on February 9, 2023, sustained a proposed deficiency in income tax of $3.6 million attributable to the petitioner’s failure to include $23 million in blocked royalty income from a controlled Brazilian subsidiary based on Brazilian law on its consolidated return for 2006. The Tax Court rejected the petitioner’s argument that the regulation was invalid under Chevron U.S.A., Inc. v. Natura… Read More
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Tax Court’s Decision on YA Global Investments Has Implications for Offshore Entities

The Tax Court’s decision in YA Global Investments LP v. Commissioner in November sends a warning to the offshore banking, finance and equity investment industries: an offshore entity is engaged in U.S. trade or business when an offshore lender or investor’s agents render substantial, regular and continuous services in the United States. Those industries are adversely affected by the potential reach of the Tax Court’s decision. YA Global, which has already generated much commentary and… Read More
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