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IRS Again Defers Foreign Currency Guidance for Multinationals

Oct. 12, 2021, 7:24 PM

The IRS will defer for another year the effective date of regulations governing how multinational companies record gains and losses for foreign currency, the agency announced Tuesday.

The guidance under tax code Section 987 concerns foreign currency gains and losses involving qualified business units, subdivisions within large multinationals that conduct business separately. Since those subsidiaries conduct business around the world in other currencies, the gains and losses recorded on their books need to be converted into U.S. dollars to be taxed in the U.S.

  • The IRS on Tuesday (Notice 2021-59) announced its intention to delay the applicability ...

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