BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Wednesday, July 20, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00
CLE
CPE
ALL

This CLE/CPE course will provide tax counsel and advisers with a critical look at sales of U.S. partnership interests by foreign partners under current tax law. The panel will discuss new and significant changes to international taxation relating to the disposition of U.S. partnership interests owned by foreign partners and taxpayers, recognized taxable gain, and available planning techniques.

Faculty

Gregory M. Weigand
Partner
McDermott Will & Emery, LLP

Mr. Weigand focuses his practice on complex domestic and international tax matters for multinational companies, closely held businesses, investment funds and family offices and high-net-wealth individuals. He advises US and foreign-based publicly traded and privately held companies on domestic and international mergers and acquisitions, financing transactions, and global restructuring transactions. Mr. Weigand regularly advises on the tax aspects of complex domestic and international transactions and the formation, structuring, and operation of private equity funds and family offices. He is experienced in negotiating, drafting and documenting transactions involving corporations, partnerships and cross-border entities. In addition, Mr. Weigand regularly represents international businesses and individuals with structuring and reorganizing their US operations and investments, including a significant amount of US real estate-based transactions such as the purchase and sale of commercial real estate and hospitality-related assets.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Ryan J. Coyle
Partner
Bilzin Sumberg Baena Price & Axelrod LLP

Mr. Coyle focuses his practice on international tax matters, with an emphasis on providing tax-efficient restructuring solutions for high-net-worth international families and their closely held businesses. In addition to advising US-based families on income, gift, and estate tax matters, he assists non-US families with tax matters relating to pre-immigration planning and inbound investment.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

Tax reform ushered in significant changes to international taxation, including a provision that supersedes the Tax Court's decision in Grecian Magnesite with amended Sections 864(c)(8) and 1446(f). Tax counsel and advisers must navigate the filing requirements under current tax law and implement effective planning techniques to limit tax liability upon foreign persons' disposition of U.S. partnership interests.

The sale, exchange, or other disposition of a partnership interest held by foreign persons may trigger the withholding and filing requirements under Sections 864(c)(8) and 1446(f). Under current tax law, dispositions of partnership interests by foreign owners include all partnership assets that are effectively connected to a U.S. trade or business. Section 864(c)(8) of the Internal Revenue Code provides that effectively-connected income (ECI) includes the gain or loss on the sale of an interest in a partnership engaged in a U.S. trade or business.

Section 1446(f) provides that if any gain from a sale or exchange of an interest in a partnership is treated under Section 864(c)(8) as effectively connected with the conduct of a trade or business within the U.S., then the transferee must collect a 10 percent withholding tax from any seller of a partnership interest. If the buyer fails to withhold any amount required under Section 1446(f), the issuer partnership is liable for the unpaid withholding tax.

Listen as our experienced panel critically examines the structuring and reporting impacts of the new tax law provisions on non-U.S. persons holding U.S. partnership interests.

Outline

  1. Determining ECI under current tax law
  2. Section 1446(f); calculating the amount realized on the disposition of a partnership interest
  3. Remedial actions and tactics for non-U.S. partners paying tax on partnership sale gain
  4. Impact on existing partnership structures

Benefits

The panel will review these and other critical issues:

  • What actions should counsel recommend to a non-U.S. partner from selling a U.S. partnership based on an ECI determination?
  • What is the impact of the tax rules on domestic and foreign blocker corporations investing in U.S. partnerships?
  • What are the methods of determining the source and calculating ECI of partnership sale gain amounts?
  • What should tax counsel consider for existing partnership structures under current tax law?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Recognize the impact on non-U.S. persons using foreign blocker corporations to hold U.S. partnership interests
  • Identify non-U.S. persons who may be adversely affected by Sections 864(c)(8) and 1446(f)
  • Determine steps tax counsel and advisers should take for both existing partnership structures and for non-U.S. persons who have reported taxable gain or loss from the sale of U.S. partnership interests

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business, law or public firm experience at mid-level within the organization, overseeing and structuring U.S. taxpayers' transactions involving foreign partnerships and vice versa; supervisory authority over other attorneys, preparers/accountants. Knowledge and understanding of tax recognition standards for U.S.-sourced and effectively connected income; familiarity with U.S. and foreign partnership structures.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).