BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Wednesday, July 24, 2024

  • schedule Time

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

  • timer Program Length

    110 minutes

Credit Information

  • 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).

$197.00
CPE
ALL

This webinar will explain the rules under which the ownership of foreign corporations owned by foreign nongrantor trusts may be attributed to the US beneficiaries of those trusts, as well as the potential tax payment and reporting obligations of those US beneficiaries. In particular, the panel will provide a timely analysis of the newly-released proposed Treasury regulations, Transactions With Foreign Trusts and Information Reporting on Transactions With Foreign Trusts and Large Foreign Gifts (REG-124850-08). These complex rules will be illustrated by case studies. The panel will also offer concrete advice on avoiding pitfalls and planning proactively to optimize taxation and reporting.

Faculty

Shudan Zhou
Partner
Norton Rose Fulbright, LLP

Ms. Zhou focuses her practice on counseling high net worth individuals, trustees, and financial institutions on the US tax implications of wealth transfer strategies, with an emphasis on international income and estate tax planning. She has substantial experience advising clients on all aspects of FATCA and CRS as well as various withholding tax and disclosure regimes. Ms. Zhou frequently counsels clients on the US tax consequences of expatriation from and immigration to the United States, and of US inbound and outbound investment structures. She also advises on the creation, administration and governance of offshore trust structures.

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Lawrence M. Lipoff
Director
CohnReznick LLP

With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high-net-worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely held businesses in the areas of income tax planning and compliance, estate planning and administration services, as well as family structure consulting. Through many years in practice, he synthesized the work of various related professionals, and their firms integrate several planning strategies into solutions that maximize value. Mr. Lipoff is a frequent lecturer and author of articles published through professional forums on topics including domestic and international - estate planning and fiduciary income taxation including constructive attribution rules for foreign trusts, Forms 3520 & 3520-A, Graegin Loans, business succession, generation-skipping transfers, Chapter 14 and carried interest estate planning for private investment fund principals, preferred freeze partnerships, and private placement life insurance.

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Description

Under the foreign corporation anti-deferral regime, US shareholders of foreign corporations may be subject to US tax on a look-thru basis (in the case of controlled foreign corporations, or CFCs) or may be subject to punitive taxation and an interest charge upon a realization event (in the case of passive foreign investment companies, or PFICs).

Under the foreign trust anti-deferral regime, US beneficiaries of a foreign nongrantor trust can be subject to the throwback tax rules when they receive “accumulation distributions” from the trust. The imposition of throwback tax and an interest charge can be harsh and, in some cases, confiscatory.

These two anti-deferral regimes each pose severe challenges to taxpayers and their advisors. The combination of them is a minefield full of traps for the unwary. Foreign corporations owned by a foreign nongrantor trust can be treated as owned, indirectly or constructively, by its US beneficiaries, resulting in punitive US taxation and reporting obligations for those beneficiaries. In an extreme scenario, a US beneficiary of a foreign trust may have the obligation to pay US income tax with respect to the trust’s foreign investments even though the US beneficiary may never receive any distribution from the trust.

In today’s globalized world, advisors can add much value to their clients by helping them navigate this minefield.

Listen as our panel of foreign trust and international tax experts breaks down the complexities of these anti-deferral rules for trust and estate practitioners.

Outline

  1. Foreign corporation anti-deferral regimes (CFCs and PFICs) – an overview
  2. Foreign trust anti-deferral regime (throwback tax) – an overview
  3. CFC/PFIC attribution through foreign nongrantor trusts – taxation and reporting
  4. Proposed regulations on foreign trust reporting
  5. Case studies

Benefits

The panel will cover these and other critical issues:

  • Determining CFC/PFIC direct, indirect and constructive ownership in general
  • Determining CFC/PFIC attribution to US beneficiaries of foreign nongrantor trusts
  • Determining US beneficiaries’ tax payment and reporting obligations when they are attributed CFC/PFIC interests through foreign nongrantor trusts
  • Identifying legal uncertainties and proactively optimizing clients’ US tax and reporting position
  • Tax compliance issues

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine CFC/PFIC direct, indirect and constructive ownership in general
  • Determine CFC/PFIC attribution to US beneficiaries of foreign nongrantor trusts
  • Determine US beneficiaries’ tax payment and reporting obligations when they are attributed CFC/PFIC interests through foreign nongrantor trusts
  • Identify legal uncertainties and proactively optimize clients’ US tax and reporting position

  • 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 or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.

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).