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B-332369 1 (2020-10-05)

handle is hein.gao/gaobaebxa0001 and id is 1 raw text is: c-AO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-332369 October 5, 2020 The Honorable Chuck Grassley Chairman The Honorable Ron Wyden Ranking Member Committee on Finance United States Senate The Honorable Richard Neal Chairman The Honorable Kevin Brady Ranking Member Committee on Ways and Means House of Representatives Subject: Department of the Treasury, Internal Revenue Service: Deduction for Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of the Treasury (Treasury), Internal Revenue Service (IRS) entitled Deduction for Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income (RIN: 1545-B055). We received the rule on July 13, 2020. It was published in the Federal Register as final regulations on July 15, 2020. 85 Fed. Reg. 43042. The stated effective date of these regulations is September 14, 2020. Id. According to IRS, section 250 was added to the Internal Revenue Code by the Tax Cuts and Jobs Act, Public Law 115-97, 131 Stat. 2054, 2208 (Dec. 22, 2017). The final regulations provide guidance under section 250 of Public Law 115-97 regarding the deduction for foreign- derived intangible income (FDII) and global intangible low-taxed income (GILTI), according to IRS. The agency stated that these regulations also coordinate the deduction for FDII and GILTI with other provisions in the Internal Revenue Code. IRS further stated that these regulations generally affect domestic corporations and individuals who elect to be subject to tax at corporate rates for purposes of inclusions under subpart F and GILTI. The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a major rule from the date of publication in the Federal Register or receipt of the rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). It was published in the Federal Register as final regulations on July 15, 2020. 85 Fed. Reg. 43042. However, the Congressional Record does not reflect the date of receipt by either House of Congress. According to an IRS official, IRS mailed the rule using the United States Postal Service's First-Class Mail service on July 15, 2020. See E-mail from Publications & Regulations Specialist, IRS, to Senior Staff Attorney, Appropriations Law Group, Office of General Counsel, GAO (Jul. 27, 2020, 11:56 AM EST). The rule has a stated effective date of September 14, 2020.