§951B Amounts Included in Gross Income of Foreign Controlled United States Shareholders

Summary

Treats some U.S. owners who actually control a foreign company as if they were regular U.S. shareholders of a controlled foreign corporation for many tax rules. It applies most of the same rules again but with the labels changed to “foreign controlled United States shareholder” and “foreign controlled foreign corporation.” It also makes sure section 951A covers those owners and companies. The Treasury must write rules to apply other tax parts (including reporting) to them and to deal with cases where the foreign company is a passive foreign investment company. Definitions: foreign controlled United States shareholder — a U.S. person who would count as a shareholder if the usual 10% test were changed to “more than 50%” and the constructive‑ownership rule in section 958(b) were used without paragraph (4). foreign controlled foreign corporation — a foreign company that is not a CFC now but would be one if you replaced “United States shareholders” with “foreign controlled United States shareholders” and used section 958(b) without paragraph (4).