This practice note discusses Internal Revenue Code (I.R.C.) Section 367 and its impact on cross-border transfers. I.R.C. Section 367 brings the principles of nonrecognition that apply to many corporate transactions, such as the reorganization rules of I.R.C. Section 368 or transfers in exchange for stock under I.R.C. Section 351, to international taxpayers. While the concept sounds simple and straightforward, I.R.C. Section 367 is one of the most complex and intricate provisions within the IRC and requires careful and thorough reading and analysis. While the language of I.R.C. Section 367 is relatively brief, there are voluminous regulations, both final and proposed, which set forth rules, exceptions, and exceptions to the exceptions.