IRS PROPOSES TAXING MORE DEEPSEA SHIPPING INCOME

IRS PROPOSES TAXING MORE DEEPSEA SHIPPING INCOME    The U.S. Internal Revenue Service has proposed to redefine as taxable the income from certain shipping activities in international waters that currently do not have U.S. tax consequences.
   Such activity would be taxable if a foreign corporation involved is 50 percent or more owned, by vote or value, by U.S. citizens, and is not a controlled foreign corporation.
   Also, under the proposed rules, the foreign owner of a company engaged in a U.S. trade or business would have to pay U.S. taxes on income derived from ocean shipping. Certain income derived from services performed in international waters would also become taxable.
   A public meeting to receive oral comments on the IRS’s proposals will be held on March 28 in Washington, D.C. Written comments, and the outlines of oral comments to be given at that meeting, must be submitted to the IRS by March 7.