New Internal Revenue Service regulations reduce the burden on US persons who have to determine whether a foreign corporation in which they have an interest is classed as a controlled foreign corporation (CFC). Revenue Procedure 2019-40 also allows US shareholders of CFCs to rely on specified financial statement information to calculate and report their tax liabilities, and reduces the amount of information they have to file. The rule addresses unintended effects of the Tax Cuts and Jobs Act 2017.
