Avoiding Tax Casualties in the Currency War

John D. Bates is an associate at Ivins, Phillips & Barker. The author is grateful to Robert B. Stack and Danielle E. Rolfes for their thoughtful comments on this article. Any views expressed are solely those of the author and not of Ivins, Phillips & Barker, and any errors are the author’s alone.

This article highlights the important transactional foreign currency tax issues that U.S. multinationals face and explains why those issues have taken on added importance in an era of volatile exchange rates. It also describes areas in which policymakers could reduce uncertainty regarding foreign currency tax issues by providing targeted guidance.