The Treasury Department doesn’t plan to rescind rules on how companies’ subsidiaries should treat foreign-currency gains and losses, a Treasury official said Thursday, but it does plan a key change in the regulations that some taxpayers seek.
Treasury won’t rescind the rules under Section 987 on how “qualified business units” handle currency gains and losses, said Kevin Salinger, deputy assistant Treasury secretary for tax policy, speaking at the 2026 DC Bar Tax Conference in Washington. Qualified business units are units of larger companies that do business separately and maintain their own books and records.
But Treasury will continue to allow ...