IRS Releases Proposed BEAT Regulations
The Internal Revenue Service (IRS) yesterday released proposed regulations on the base erosion and anti-abuse tax (BEAT). The BEAT is an alternative tax applicable to large corporations with significant multinational operations, and in some cases could limit the ability of tax credit investors to utilize their tax credits to reduce their BEAT liability. These regulations should help to clarify whether and to what extent any given taxpayer is subject to the BEAT, and assist in evaluating whether the taxpayer’s BEAT liability may limit their appetite for current or future tax credits. Comments and requests for a public hearing must be sent to the IRS within 60 days of publication in the Federal Register.