SECTION 3. APPLICATION OF

PROPOSED §1.951A-5

It is anticipated that forthcoming regulations will provide that a domestic partnership or S corporation may apply the rules in proposed §1.951A-5, in their entirety, for taxable years that ended before June 22, 2019. Thus, for example, a domestic partnership that applies proposed §1.951A-5 for a taxable year ending before June 22, 2019, would file a Form 1065, including Form 8992, U.S. Shareholder Calculation of Global In- tangible Low-Taxed Income (GILTI), for such taxable year on the basis of proposed §1.951A-5 and furnish to its partners for such taxable year Schedules K-1 on the basis of proposed §1.951A-5. The forthcoming regulations are expected to provide that in order to apply the rules in proposed §1.951A-5, a partnership or S corporation must satisfy the notification and reporting requirements described in section 5 of this notice.

Comments noted that proposed §1.951A-5 did not provide taxpayers with guidance in a number of areas. The adoption of an aggregate approach to domestic partnerships under §1.951A-1(e) did not resolve all of these open questions. Therefore, it is anticipated that forthcoming regulations applicable where there is reliance on this notice will provide, regarding future distributions by a partnership CFC of a partnership or S corporation, that the amount excludible from gross income under section 959 reflects only amounts included in income by a partner or shareholder under proposed §1.951A-5.