The Treasury Department is being pressed by Republican lawmakers and business groups to correct a defect in a new tax on foreign earnings that has companies like biotech giant Amgen Inc. saying they may move their research and development operations offshore.
They are asking Treasury to clarify how to properly allocate research and development expenses under the new rules, which are meant to ensure multinationals pay at least a minimum amount of tax on overseas profits earned in countries with lower tax rates than the U.S.
The issue is that the 2017 tax law didn’t account for existing rules requiring ...