IRS Commissioner: Congressional Action Required to Stop Inversions

As the Treasury Department considers additional steps it may take addressing corporate inversion transactions, IRS Commissioner John Koskinen is saying that, to a “substantial extent,” Congress would need to act if it wishes to prevent the transactions.  In a conversation with Bloomberg BNA Koskinen stated that, while the inversion issue is being carefully examined by the administration and the policy decisions rest with the Treasury, “it has been clear from the start that there are limits as to what the Treasury and IRS regulatory process can accomplish.”  According to Koskinen, these limitations are due to the fact that inversions are “a symptom of a broader set of issues with the corporate tax code, and those issues are really beyond the ability of the Treasury and IRS to deal with systemically.”  While stating that guidance efforts by Treasury will continue, he refused to provide a specific timeline with respect to this guidance.

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