Treasury Says Previously Taxed Income Rules Might Be Revised

Proposed rules on previously taxed income could see changes when they’re finalized, and that’s part of the reason the Treasury Department isn’t allowing taxpayers to rely on the proposal, a Treasury official said Tuesday.

The proposed regulations on previously taxed earnings and profits, or PTEP, “could be changed in response to comments,” said James Wang, deputy international tax counsel at Treasury, speaking at a conference of the New York State Bar Association.

PTEP is foreign income that a taxpayer brings back to the US after US taxes have already been levied on it, so rules for handling it are needed ...