In this article, Layla Asali and Rocco Femia discuss Section 367(a) and §367(d), which address the outbound transfer of property by United States persons to foreign corporate transferees in non-recognition transactions. The U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations, which "champion an ahistorical and overbroad variant of the anti-tax avoidance policy of §367 to the exclusion of the general policy of nonrecognition," the authors said.