Rev. Proc. 2017-23

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Part III

Administrative, Procedural, and Miscellaneous

Rev. Proc. 2017-23

SECTION 1. PURPOSE AND SCOPE

This revenue procedure describes the process for filing Form 8975, Country-by-

Country Report, and accompanying Schedules A, Tax Jurisdiction and Constituent

Entity Information (collectively, Form 8975), by ultimate parent entities of U.S.

multinational enterprise (MNE) groups for reporting periods beginning on or after

January 1, 2016, but before the applicability date of §1.6038-4 (early reporting periods).

SECTION 2. BACKGROUND

.01 On June 30, 2016, the Department of the Treasury (Treasury Department)

and the Internal Revenue Service (IRS) published in the Federal Register final

regulations (T.D. 9773) (CbC reporting regulations) that require certain U.S. business

entities that are the ultimate parent entity of a U.S. MNE group to file Form 8975

annually with the IRS. See §1.6038-4. Form 8975 requires the ultimate parent entity of

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a U.S. MNE group to report information, on a country-by-country basis, related to the

group’s income and taxes paid, together with certain indicators of the location of the

group’s economic activity. The CbC reporting regulations apply to reporting periods of

ultimate parent entities of U.S. MNE groups that begin on or after the first day of the first

taxable year of the ultimate parent entity that begins on or after June 30, 2016.

.02 Some jurisdictions have adopted country-by-country (CbC) reporting

requirements for annual accounting periods beginning on or after January 1, 2016, that

would require a constituent entity resident in the jurisdiction to report CbC information if

the constituent entity is part of an MNE group with an ultimate parent entity resident in a

jurisdiction that does not have a CbC reporting requirement (including pursuant to

parent surrogate filing) for the same annual accounting period (local CbC filing).

Consequently, constituent entities of a U.S

would require a constituent entity resident in the jurisdiction to report CbC information if

the constituent entity is part of an MNE group with an ultimate parent entity resident in a

jurisdiction that does not have a CbC reporting requirement (including pursuant to

parent surrogate filing) for the same annual accounting period (local CbC filing).

Consequently, constituent entities of a U.S. MNE group may be subject to local CbC

filing for early reporting periods, unless the ultimate parent entity files a Form 8975, or

reports CbC information to another jurisdiction that accepts surrogate filing, for such

early reporting period. The preamble to the CbC reporting regulations indicated that the

Treasury Department and the IRS would provide a procedure for ultimate parent entities

of U.S. MNE groups to file Form 8975 for early reporting periods.

SECTION 3. FILING PROCEDURE

.01 Beginning on September 1, 2017, Form 8975 may be filed for an early

reporting period with the income tax return or other return as provided in the Instructions

to Form 8975 for the taxable year of the ultimate parent entity of the U.S. MNE group

with or within which the early reporting period ends. In order to file Form 8975 for an

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early reporting period, an ultimate parent entity that files (or has filed) an income tax

return for a taxable year that includes an early reporting period without a Form 8975

attached must follow the procedures for filing an amended income tax return and attach

Form 8975 to the amended return within twelve months of the close of the taxable year

that includes the early reporting period. Filing an amended income tax return solely to

attach Form 8975 in accordance with this revenue procedure will have no effect on the

statute of limitations for the income tax return

attached must follow the procedures for filing an amended income tax return and attach

Form 8975 to the amended return within twelve months of the close of the taxable year

that includes the early reporting period. Filing an amended income tax return solely to

attach Form 8975 in accordance with this revenue procedure will have no effect on the

statute of limitations for the income tax return.

.02 In order to ensure timely automatic exchange of the information on a Form

8975 for an early reporting period, ultimate parent entities that are able to file their

returns electronically are encouraged to file their returns and the Forms 8975

electronically. An ultimate parent entity that files its return electronically must file the

Form 8975 through the IRS Modernized e-File system in Extensible Markup Language

(XML) format, not as a binary attachment (such as a PDF file). The IRS intends to

provide specific electronic filing information on Form 8975 to the software industry in

early 2017 so that developers will be able to make Form 8975 available in their software

ahead of the September 1, 2017, implementation date. For filers of Form 8975 that are

not eligible to use Modernized e-File to file their income tax return, a paper version of

Form 8975 will be made available in advance of the September 1, 2017, implementation

date.

SECTION 4. APPLICABILITY DATE

This revenue procedure applies to reporting periods of ultimate parent entities of

U.S. MNE groups beginning on or after January 1, 2016, and before the applicability

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date of §1.6038-4.

SECTION 5. DRAFTING INFORMATION

The principal author of this revenue procedure is Melinda E. Harvey of the Office

of Associate Chief Counsel (International). For further information regarding this

revenue procedure contact Melinda E. Harvey at (202) 317-6934 (not a toll free call).