Rev. Rul. 63-116

The term `United States person' as used in sections 6038 and 6046 of the Internal Revenue Code of 1954, relating to returns of information with respect to certain foreign corporations, will be considered to have the meaning assigned to it under section 957(d) of the Code. Section 957(d) of the Code excludes from the definition of `United States person' certain residents of United States possessions. Therefore, an individual who qualifies under paragraph (1), (2), or (3) of section 957(d) of the Code is excluded from the requirement of furnishing an information return under section 6038 of the Code on Form 2952 (Rev. Feb. 1962), Information Return By a Domestic Corporation With Respect to Controlled Foreign Corporations, and under section 6046 of the Code on Form 959 (Rev. Jan. 1963), United States Information Return With Respect to the Organization or Reorganization of a Foreign Corporation and Acquisition of its Stock.

Any United States citizen or resident who is an officer or director of a foreign corporation described in paragraph (1), (2), or (3) of section 957(d) of the Code will not be required to file a return under section 6046(a)(1) of the Code with respect to such corporation, five percent or more in value of the stock of which is owned by a United States person, if, as of the date liability would otherwise arise to file such return, after applying the rule of the preceding paragraph, no United States person owning five percent or more in value of the stock of such foreign corporation is required to file a return with respect to such corporation under section 6046(a)(2) or (3) of the Code.

With respect to any liability to file a return under section 6046 of the Code arising on January 1, 1963, if three or fewer United States persons own on that date 95 percent or more in value of the outstanding stock of a foreign corporation and file a return or returns with respect to such corporation under section 6046(a)(2) of the Code, a return will not be required with respect to such corporation under section 6046(a)(1) of the Code from any United States citizen or resident who is an officer or director of such corporation. The reason for this construction is that the return of the United States person or persons discloses all of the information required of the officer or director.

Conforming amendments to the Regulations are under consideration.

¹ Based on Technical Information Release 467, dated April 19, 1963.