On May 10, 2016, the Internal Revenue Service (“IRS”) published proposed regulations that would impose additional reporting and record-keeping requirements on domestic “disregarded entities” that are wholly owned (directly or indirectly) by a foreign person (e.g., a U.S. limited liability company the sole member of which is a foreign corporation or individual).  If the regulations are finalized, the domestic disregarded entity would be required to file IRS Form 5472 to disclose any “reportable transactions” with the foreign parent entity and other related parties (including contributions to and distributions from the domestic disregarded entity).  Under the proposed regulations, an affected disregarded entity also would be required to obtain an IRS employer identification number (“EIN”).  Failure to comply with the regulations (if finalized in current form) could result in the imposition of penalties on the disregarded entity.  Foreign charities and U.S. charities with foreign affiliates or global structures that involve U.S. disregarded entities should review the proposed regulations and, if applicable, put in place structures to ensure compliance. For more information, please click here to read a Patterson Belknap client alert on the topic.