Dual Consolidated Losses: New Proposed Regulations

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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
Friday, November 22, 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 review the fundamentals of the dual consolidated loss (DCL) rules under IRC Section 1503(d) to global entity structures and the effect of the new proposed regulations on existing structures for international companies and their advisers. Our panel of international mergers and acquisitions strategists will present examples and scenarios applying the existing and proposed guidelines.

Faculty

Neil Feinstein

Managing Director, National Tax Office, International Tax Service

BDO USA

Mr. Feinstein has over 30 years of experience in advising multinational companies and large privately held companies on domestic and international mergers and acquisitions and other business transactions, structuring of international operations (including tax efficient supply chains), financial products, and foreign currency transactions, as well as on other tax matters. His clients have included companies in the manufacturing, pharmaceuticals, specialty chemicals, and financial services industries, among other industries. Mr. Feinstein joined BDO in November 2022 after retiring as a managing director from Deloitte Tax LLP in 2020. Prior to joining Deloitte in 1996, he was partner in the law firm of Duane, Morris & Heckscher and in the law firm of Zapruder & Odell. Mr. Feinstein began his career as a tax associate at the law firm of Morgan, Lewis & Bockius.

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Michael Masciangelo

Tax Partner; International Tax Services Practice Leader

BDO USA

Mr. Masciangelo is responsible for international tax strategy development, including working with the firm’s U.S. offices and hub markets to develop and implement strategic cross-border solutions. He has more than 25 years of experience at a Big Four firm in corporate and international tax. Mr. Masciangelo has a combination of firmwide technical leadership and market-facing roles.

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Description

Some companies with dual-resident status are treated as domestic entities in the U.S. and abroad; a U.S. domestic entity may operate through branches or units in foreign countries or two domestic U.S. corporations filing a consolidated return could generate net operating losses deductible in two countries. IRC Section 1503(d) DCL rules and the related regulations were enacted to prevent entities operating in the U.S. and abroad from double-dipping net operating losses.

In August 2024, proposed regulations REG-105128-23 were issued to recognize and work with the Pillar II rules and the 15 percent minimum global tax. These rules clarify that a tax intended to ensure a minimum tax rate is an income tax and state that a qualified domestic top-up tax and an income inclusion rule can be considered an income tax. They also explain the interaction of DCL with intercompany transactions, eliminate certain stock sales from DCL, and incorporate other significant changes. Multinational tax advisers must grasp the DCL rules and understand the implications of the new proposed regulations.

Listen as our panel of international tax experts reviews the existing DCL rules and the impact of the recently proposed regulations.

Outline

Dual consolidated losses: introduction
1. Overview
2. Key definitions
3. Calculation of DCLs
4. Foreign use
5. Domestic use limitation
6. Domestic use election and triggering events and exceptions
Proposed regulations
1. Disregarded payment rules
2. Income with respect to stock
3. Books and records “clarification”
4. Pillar II
5. Intercompany transactions

Benefits

The panel will cover these and other critical issues:

Entities subject to IRC Section 1503(d) DCL rules
Proposed regulations REG-105128-23 and their impact

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify foreign entity sales subject to recapture provisions for DCLs
Determine late filing relief options for DCLs
Decide how recent proposed DCL regulations impact existing global structures
Ascertain multinational entities subject to IRC Section 1503(d)

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 international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

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.