New IRS website link for OECD reporting

Your Guide to State, Local, Federal, Estate + International Taxation

OECD, international taxThe Organization for Economic Co-operation and Development (OECD) helps governments around the world communicate and build policies for improving the social and economic welfare of its people. One initiative of the OECD is to improve transparency between countries for the tax reporting of multinational enterprises. Country-by-country reporting provides a reporting template for businesses to show where profits, sales, employees and assets are located and where taxes are paid and accrued. Countries will then share the information with other countries where the business is operating. This is a necessary tool to prevent companies from treaty shopping or shifting high income to jurisdictions where little or no tax is paid.

Only U.S. multinational enterprises (MNE) are subject to the country-by-country reporting. An MNE is a group with $850 million or more of revenue in a previous reporting period and is required to file Form 8975, Country-by-Country Report.

The Internal Revenue Service (IRS) has created a new section on its website providing country-by-country reporting information for U.S. Multinational Enterprises having to report under the OECD.

The new section offers resources such as:

  • General information
  • Information on Form 8975 filing and links to forms and instructions
  • Frequently Asked Questions
  • Subscription to the Country-by-Country Reporting Newsletter
  • Table of countries that have Competent Authority Arrangements with the U.S.
  • Model arrangement
  • Regulations for annual country-by-country reporting
  • Report of transfer pricing documentation
  • Other background information and links to the OECD website

Please contact a qualified tax professional to assist with all your compliance needs. This information is general and should not be relied upon.

Jill A. Helm, CPA