FAA 20153301F's Unfounded Recharacterization of Services Income as Sales Income for Subpart F Purposes - McDermott Will & Emery

FAA 20153301F’s Unfounded Recharacterization of Services Income as Sales Income for Subpart F Purposes

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Overview


Lowell Yoder wrote this bylined article on IRS Field Attorney Advice which recharacterized referral fees earned by a controlled foreign corporation (CFC) as Subpart F sales income rather than services income. Mr. Yoder asserted that “the IRS’s analysis is untethered from the governing statute and regulations and as such is fundamentally flawed.”