In this case the US Tax Court held that a closing agreement did not result in retroactive indebtedness. Analog Devices Corp. repatriated cash dividends from a foreign subsidiary and claimed an 85% dividends received deduction for FY 2005, cf. US regs § 965. No related party indebtedness was reported by the company which would have limited the deduction available. During the audit of Analog Devises Corp. the IRS claimed that a 2 pct. royalty from the subsidiary should be increased to 6% for FY 2001-2005. This was accepted and Analog Devises Corp. entered into a closing agreement with the IRS. The US Tax Court held that the closing agreement concerning accounts receivable, cf. the increased royalty, was not related party indebtedness for the purposes of § 965 ...