Skip to Main Content

Clark Armitage Comments on GILTI and Subpart F

June 8, 2018, MLex US Tax Watch

The Tax Cuts and Jobs Act's new international system has created a wrinkle for certain exempt organizations that are typically not subject to the corporate income tax.

. . .

"The IRS has long ruled that Subpart F income is not unrelated business taxable income because it is like dividend income, which is expressly carved out of UBTI. That rationale and other bases for exclusion would seem to apply with equal force to GILTI inclusions," Clark Armitage of Caplin & Drysdale said.

But Armitage said "it seems unlikely Treasury would prioritize this particular exempt org issue, given the host of tougher issues they are addressing and the obvious analog of Subpart F precedent that is already out there."

For the full article, please visit MLex’s website (subscription required).

Excerpt taken from the article “Treasury, IRS Wrestle Over Exempt Group Rules for New Global Tax System” by Kat Lucero for MLex.


About Caplin & Drysdale
Celebrating our 55th Anniversary in 2019, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022


This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
©2021 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)