Treasury Details Input Wanted on Foreign-Government Income Regs

The Treasury Department is seeking comments on how existing business practices fit into proposed regulations on the tax treatment of foreign governments’ income from US investments, a department official said Friday.

Treasury wants comments on when existing practices constitute passive investment rather than active participation in a business with regard to a foreign government’s acquisition of debt, said Huzefa Mun, an attorney-adviser in Treasury’s Office of Tax Policy, speaking on an International Tax Institute webinar.

Such comments would be “very, very helpful to us,” he said.

Certain foreign-government income generally is exempt from US taxation, but that exemption doesn’t ...