tax notes international - Tuck School of Business - Dartmouth College

Office of Associate Chief Counsel (Income Tax and
Accounting) discussed proposals that had been rejected
in the course of developing the rules. He said the
drafters considered and received comments on including
a substantial contribution safe harbor, but decided
not to adopt the safe harbor because of the ‘‘broad
range of activities covered by the regulations’’ preventing
the creation of an appropriate rule.
Mitchell added that the IRS rejected including an
antiabuse provision that would have precluded CFCs
from meeting the substantial contribution test if a related
person had significant involvement in the production
process.
‘‘We decided that the CFC’s contribution really
should be evaluated on its own and we ultimately decided
that even more than one person could make a
substantial contribution,’’ Mitchell said. ‘‘If another
party makes a contribution to the manufacturing process,
it doesn’t preclude the CFC from having a substantial
contribution.’’
♦ David D. Stewart, Tax Analysts.
E-mail: dstewart@tax.org
CORRECTION
An article in the January 26, 2009, issue of Tax
Notes International (‘‘U.S. Tax Returns for Foreign Nationals,’’
p. 337) contained an error. On p. 340, in the
section titled ‘‘Disclosure Requirements,’’ references to
Schedule A should be to Schedule B.
Tax Analysts regrets the error.
UNITED STATES
TAX NOTES INTERNATIONAL FEBRUARY 2, 2009 • 409
(C) Tax Analysts 2009. All rights reserved. Tax Analysts does not claim copyright in any public domain or third party content.