Tax Reform Act

[AI summary unavailable — showing source text] Tax Reform Act - Provides that if a foreign corporation is a controlled foreign corporation for an uninterrupted period of 30 days or more during any taxable year, every United States shareholder of such corporation who owns stock totaling 1 percent or more of the combined voting stock in such corporation on the last day in such year on which such corporation is a controlled foreign corporation shall include in its gross income, for its taxable year in which or with which such taxable year of the corporation ends, its pro rata share of the corporation's earnings and profits for such year. Prescribes rules for determining stock ownership under this Act. Provides for an exclusion from gross income of previously taxed earnings and profits. States that the basis of a United States shareholder's stock in a controlled foreign corporation, and the basis of property of a United States shareholder by reason of which it is considered under this Act as owning stock of a controlled foreign corporation, shall be increased by the amount required to be included in its gross income under this Act with respect to such stock or with respect to such property, as the case may be, but only to the exten…