Firm Tells IRS to Scrap ‘Outdated’ Inbound Transactions Rules

Current US rules governing the tax treatment of inbound corporate transactions are outdated and can block foreign companies that would like to become American, law firm Sullivan & Cromwell told the IRS Friday, urging removal of the regulations entirely.

Changes Republicans made in their 2017 tax law, like cutting the corporate rate to 21%, made the US an attractive place to do business, the firm said in a letter to the agency. These changes, in addition to the strength of American capital markets, have resulted in a number of companies domesticating in the US, it said.

“Many more wish to ...