On July 13, 2012, the IRS issued Notice 2012-39, which provided that the Treasury Department will promulgate temporary regulations incorporating the guidance contained in Notice 2012-39. These new regulations will address the transfers of intangible property to a foreign corporation under IRC §367(d) and apply to transfers of intangible property occurring on or after July 13, 2012. Transfers by domestic taxpayers to foreign corporations of intangible property are heavily scrutinized by the IRS.
IRS Notice 2012-39 provides that the IRS and the Treasury Department are aware that certain taxpayers are engaging in transactions intended to repatriate earnings from foreign corporations without the appropriate recognition of income. IRS notice 2012-39 also solicits comments from taxpayers concerning the new regulations.