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A controlled foreign corporation (CFC) realizes Subpart F income from:
Child Pornography
Illegal material that depicts minors in explicit sexual situations, which is prohibited and penalized under law.
Pedophiles
Adults who are sexually attracted to prepubescent children, which is both a criminal and psychological issue.
Innocent Partakers
Individuals who are unintentionally involved in or affected by actions or decisions made by others, often without having a direct role or guilt in the situation.
Cybersex
Virtual sexual encounters or experiences that occur through the use of the Internet, often involving communication with others via text, imagery, or video.
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