Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has released the Summer 2008 issue of the Statistics of Income (SOI) Bulletin. The SOI is a quarterly compilation of information from federal tax returns and other documents. This issue of the bulletin contains data on the growth in profits and tax liability reported by foreign-controlled domestic corporations.

  According to 2005 data, there were 61,820 foreign-controlled domestic corporations (FCDCs), accounting for 1.1 percent of the total of all U.S. corporations. However, FCDCs generated $3.5 trillion of total receipts with $9.2 trillion of total assets, accounting for 13.7 percent of receipts and 13.9 percent of assets reported on all U.S. corporation income tax returns. Profits, or net income less deficit, reported by FCDCs for tax purposes were $165.2 billion, an 81.9 percent increase from $90.8 billion reported in 2004. The U.S. tax liability for FCDCs, total income tax after credits, was $42.4 billion for 2005, a 41.7 percent increase since 2004.

  The bulletin also includes articles on:

  --Foreign corporations controlled by U.S. multinational corporations;

  --Corporations that claimed the foreign tax credit on their U.S. tax returns;

  --Growth trends in the number of partnership and sole proprietorship returns;

  --Federal gift tax returns filed for gifts given in 2005; and

  --Use of business credit for research activities.

  The Statistics of Income Bulletin is available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, Pa. 15250-7954, Both annual subscriptions and single issues are available. The Bulletin is also available online at www.irs.gov.

IR-2008-97,
2008FED ¶46,543

Summer 2008 SOI Bulletin [Document will be available on August 20, 2008 - CCH.]

Other References:

 
Code Sec. 6108

  CCH Reference - ¶36,942.01

  CCH Reference - ¶36,942.40

  Tax Research Consultant

  CCH Reference - TRC IRS: 3,152.10