FROM THE OFFICE OF PUBLIC AFFAIRS

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October 7, 2004
js-1997

Treasury Issues Guidance on Classification of European Entities

Today, the Treasury Department and the Internal Revenue Service issued guidance on the classification of certain European business entities for U.S. tax purposes.

In general, the status of a business entity for tax purposes – for example, as a corporation or as another type of entity such as a partnership – depends on its form of organization.  Regulations provide that entities that take particular forms in their country of organization are always treated as corporations for U.S. tax purposes.

 Notice 2004-68 supplements this list of "per se" corporations to reflect recent developments in Europe.  First, it provides that the Societas Europaea, which is a new type of entity in the European Union, will be treated as a corporation for U.S. tax purposes.  Second, the notice provides that public limited liability companies under the laws of Estonia, Latvia, Liechtenstein, Lithuania, and Slovenia will also generally be treated as corporations for U.S. tax purposes.

A copy of Notice 2004-68 is attached.

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REPORTS

• Notice 2004-68