SECTION 3. ACTIVITIES NOT

TAKEN INTO ACCOUNT IN DETERMINING A FOREIGN BRANCH SEPARATE UNIT OR FORM 8858 FILING OBLIGATION

.01 In general. “Temporary activities,” as defined in section 3.02 of this revenue procedure, will not be taken into account for purposes of determining whether a domestic corporation has a foreign branch separate unit, or whether a U.S. person is required to file a Form 8858. As a result, temporary activities will not give rise to a foreign branch separate unit under section 1503(d). In addition, for purposes of Form 8858, temporary activities will not give rise to a foreign branch (that is, either a foreign branch as defined in §1.367(a)-6T(g)(1) or a qualified business unit as defined in §1.989(a)-1(b)(2)(ii)). Thus, temporary activities will not give rise to an obligation of a U.S. person to file a Form 8858, including an obligation to file a Form 8858 by attaching the Form 8858 to a Form 5471 with respect to a controlled foreign corporation or to a Form 8865 with respect to a controlled foreign partnership.

.02 Temporary activities. The term temporary activities means activities of a taxpayer conducted by one or more in

dividuals in a foreign country during any single consecutive period of up to 60 calendar days selected by the taxpayer within calendar year 2020, to the extent that the individual or individuals were temporarily present in the foreign country during the period and the activities would not have been conducted in the foreign country but for COVID-19 Emergency Travel Disruptions with respect to the individual or individuals. For example, if an individual employed by or acting on behalf of a domestic corporation traveled to a foreign country on March 1, 2020, and as a result of restrictions implemented by, or recommendations of, the U.S. government or a foreign government in response to the COVID-19 Emergency remained in the foreign country until April 27, 2020, then any activities conducted by the individual on behalf of the domestic corporation during such period would constitute temporary activities, to the extent that, but for the restrictions or recommendations, the individual would have left, and would not have conducted the activities in, the foreign country.

.03 Documentation . A domestic corporation that for purposes of section 1503(d), or a U.S. person that for purposes of Form 8858, treats activities as temporary activities should retain contemporaneous doc

umentation to establish that the activities are temporary activities (including to establish the up-to-60-day period described in section 3.02 of this revenue procedure during which the activities occur), and should be prepared to provide the documentation to the Internal Revenue Service upon request.

.04 No inference. No inference should be drawn from this revenue procedure as to whether activities of a taxpayer that are conducted by one or more individuals in a foreign country during calendar year 2020 and that would be temporary activities without regard to the 60-day limit described in section 3.02 of this revenue procedure give rise to a foreign branch as defined in §1.367(a)-6T(g)(1) or a qualified business unit as defined in §1.989(a)1(b)(2)(ii).