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Tax Code Amendments: Foreign Stock Ownership and Controlled Corporations

This bill amends the tax code regarding how stock ownership in foreign corporations is calculated for tax purposes. It aims to clarify how U.S. persons and companies are taxed on income from foreign entities, especially those controlled by foreign entities. These changes may impact the reporting and tax obligations of certain U.S. investors with interests in foreign companies.
Key points
Restoration of downward attribution limitation: New rules make it harder to attribute stock ownership from non-U.S. persons to U.S. persons in certain scenarios.
New rules for foreign-controlled U.S. shareholders: Definitions and taxation rules are introduced for U.S. shareholders in foreign corporations that are controlled by foreign entities.
Potential changes in tax obligations: U.S. individuals and companies with interests in foreign corporations should review if these new provisions affect their tax liabilities and income reporting.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_2186
Sponsor: Rep. Estes, Ron [R-KS-4]
Process start date: 2025-03-18
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to restore the limitation on downward attribution of stock ownership in applying constructive ownership rules.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_2186.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-03-18.

What are the main provisions?

Key points include:

  • Restoration of downward attribution limitation: New rules make it harder to attribute stock ownership from non-U.S. persons to U.S. persons in certain scenarios.
  • New rules for foreign-controlled U.S. shareholders: Definitions and taxation rules are introduced for U.S. shareholders in foreign corporations that are controlled by foreign entities.
  • Potential changes in tax obligations: U.S. individuals and companies with interests in foreign corporations should review if these new provisions affect their tax liabilities and income reporting.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Estes, Ron [R-KS-4].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes