DC Tax Flash: IRS Instructs on Disregarding Foreign Business Activity Due To Travel Restrictions

Tax Alert

The Internal Revenue Service (IRS) today issued Revenue Procedure 2020-30, directing that certain foreign business activity attributable to travel disruptions caused by the coronavirus outbreak will be disregarded for purposes of determining if a company is operating a Foreign Disregarded Entity or Foreign Branch.

Specifically, the IRS explains that the guidance "provides that certain activities are not taken into account for purposes of section 1503(d) or Form 8858, as a result of travel restrictions and disruptions resulting from the global outbreak of the virus that causes COVID-19, individuals may temporarily conduct activities in a foreign country that would not otherwise have been conducted there."

​The five-page text of Revenue Procedure 2020-30 is posted here.

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