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TREAS/IRS RIN: 1545-BI25 Publication ID: Spring 2009 
Title: ●Guidance Regarding the PFIC Income Test and Certain PFIC Subsidiaries  
Abstract: This document contains proposed regulations under sections 1297(b), 1297(c) and 1298(b)(3) of the Internal Revenue Code (Code) regarding the treatment of certain income or gain received or accrued by a foreign corporation in a taxable year for purposes of determining whether such foreign corporation is a passive foreign investment company (PFIC) in such taxable year. The regulations under section 1297(b) provide rules for classifying certain rent and royalty income earned by a foreign corporation for purposes of the passive income test of section 1297(a)(1). The regulations under section 1297(c) provide rules for classifying gains recognized by a foreign corporation from the sale or exchange of stock of a 25-percent owned (by value) foreign subsidiary corporation for purposes of the passive income test of section 1297(a)(1). The regulations under section 1298(b)(3) apply the change-of-business exception provided by section 1298(b)(3) to a foreign corporation's sale or exchange of all or a portion of the stock of a 25-percent owned (by value) corporation described in section 1297(c). The regulations affect certain foreign corporations and United States persons who own (directly or indirectly) stock interests in such foreign corporations. 
Agency: Department of the Treasury(TREAS)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: Undetermined 
CFR Citation: 26 CFR 1   
Legal Authority: 26 USC 7805    26 USC 1298(f)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  12/00/2009    
Additional Information: REG-141373-08 Drafting Attorney: Jeffrey L. Vinnik (202) 622-3840 Reviewing Attorney: Ethan Atticks (202) 622-4408 CC:INTL
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Jeffrey L. Vinnik
Attorney-Advisor
Department of the Treasury
Internal Revenue Service
1111 Constitution Avenue NW.,
Washington, DC 20224
Phone:202 622-3810
Email: jeffrey.l.vinnik@irscounsel.treas.gov