26 U.S.C. § 951B

Amounts included in gross income of foreign controlled United States shareholders

Official textInternal Revenue Code (Title 26 U.S.C.)uscode.house.govlast amended Jul 04, 2025

# (a) In general

In the case of any foreign controlled United States shareholder of a foreign controlled foreign corporation— (1) this subpart (other than sections 951A, 951(b), and 957) shall be applied with respect to such shareholder (separately from, and in addition to, the application of this subpart without regard to this section)— (A) by substituting “foreign controlled United States shareholder” for “United States shareholder” each place it appears therein, and (B) by substituting “foreign controlled foreign corporation” for “controlled foreign corporation” each place it appears therein, and (2) section 951A (and such other provisions of this subpart as provided by the Secretary) shall be applied with respect to such shareholder— (A) by treating each reference to “United States shareholder” in such section as including a reference to such shareholder, and (B) by treating each reference to “controlled foreign corporation” in such section as including a reference to such foreign controlled foreign corporation.

# (b) Foreign controlled United States shareholder

For purposes of this section, the term “foreign controlled United States shareholder” means, with respect to any foreign corporation, any United States person which would be a United States shareholder with respect to such foreign corporation if— (1) section 951(b) were applied by substituting “more than 50 percent” for “10 percent or more”, and (2) section 958(b) were applied without regard to paragraph (4) thereof.

# (c) Foreign controlled foreign corporation

For purposes of this section, the term “foreign controlled foreign corporation” means a foreign corporation, other than a controlled foreign corporation, which would be a controlled foreign corporation if section 957(a) were applied— (1) by substituting “foreign controlled United States shareholders” for “United States shareholders”, and (2) by substituting “section 958(b) (other than paragraph (4) thereof)” for “section 958(b)”.

# (d) Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance— (1) to treat a foreign controlled United States shareholder or a foreign controlled foreign corporation as a United States shareholder or as a controlled foreign corporation, respectively, for purposes of provisions of this title other than this subpart (including any reporting requirement), and (2) with respect to the treatment of foreign controlled foreign corporations that are passive foreign investment companies (as defined in section 1297).

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