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Internal Revenue Service
The Obama administration's incomplete answer to corporate inversions
The Obama administration's incomplete answer to corporate inversions

Obama administration officials freely admit that their new effort to deter corporate inversions -- a form of accounting fiction U.S. corporations are increasingly using to avoid taxes on income they earn in foreign countries -- won't actually stop the practice. As a senior Treasury Department official put it Tuesday, "Legislation is the only way to close down inversion effectively." Said official's analysis was right on target, although the administration's legislative fix isn't so well aimed. An inversion happens when a U.S. corporation buys a smaller foreign firm, then creates a new foreign holding company (on paper, mainly) to own the combined assets....

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