IRS may change treatment of foreign insurers' stock earnings.(Brief Article)

THE INTERNAL REVENUE SERVICE has proposed a regulation that could cut foreign insurers' U.S. income taxes.

The proposed regulation would let foreign insurers that do business in the United States treat much of the income that their stock holdings generate as trade-related income.

If a foreign insurer owned less than 10% of the stock of a U.S. company, it could treat earnings on that stock as trade-related income.

If a foreign insurer owned at least 10% of the stock of a U.S. company, it would have to continue to treat earnings on that stock as gen