Notice 2016-10: Foreign tax refunds, RIC election made under section 853(a)

Notice 2016-10: Foreign tax refunds, RIC election

The IRS today released an advance version of Notice 2016-10 to address the application of sections 853 and 905(c) to the receipt by a regulated investment company (RIC) of a refund of a tax that was eligible for a foreign tax credit under section 901 or 903 (“foreign tax”) if that foreign tax, when paid by the RIC, was treated as paid by the RIC’s shareholders under section 853(b)(2) because an election was made under section 853(a).

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Notice 2016-10 [PDF 50 KB} describes regulations under sections 853 and 905(c) that the Treasury Department and IRS intend to issue. Today’s notice also provides guidance on obtaining administrative relief through closing agreements.

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