OMB’s Office of Information and Regulatory Affairs (OIRA) completed its review of proposed regulations from the U.S. Treasury Department relating to the exception from passive income under section 1297 for certain foreign insurance companies.
Pub. L. No. 115-97 (December 22, 2017)—the legislation that is often referred to as the “Tax Cuts and Jobs Act” (TCJA)—modified the insurance exception to the passive foreign investment company rules.
The proposed regulations are listed on the OIRA website as:
OIRA’s description of these regulations is:
Proposed regulations under section 1297(b)(2)(B) addressing when a foreign insurance company's income is excluded from passive income under section 1297(a). The proposed regulation requires that income be derived in the "active conduct" of an "insurance business" by a "qualifying insurance corporation" proposing a definition for each of these terms.
Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before being issued, pursuant to Executive Order 13771. OIRA completed its review of the proposed regulations under section 1297 on May 22, 2019. The U.S. Treasury Department and IRS will now be expected to release these proposed regulations given that OIRA review has been concluded.
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