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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, June 14, 2023

  • 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 course will provide tax advisers and return preparers with a practical guide to completing Form 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships. The panel will discuss how to correctly identify the taxpayer category, determine the allocable share of foreign income, comply with Schedule K-2 and K-3 reporting requirements, and how to avoid potentially costly mistakes.

Faculty

C. Edward Kennedy
Managing Director
C Edward Kennedy Jr, PC

Mr. Kennedy has more than 42 years of experience dealing with a variety of international tax matters, specializing in tax consulting services to a wide variety of clients ranging from closely held companies to multi-national businesses. His expertise includes domestic and foreign income and social security tax planning, tax compliance for individuals and corporations, tax treatment of incentive compensation plans, international assignment program administration, and international assignment policy design. Mr. Kennedy has also served as the U.S. practice leader for international social security matters for a Big 4 accounting firm. He is a frequent speaker in the areas of international tax compliance and reporting obligations U.S. information reporting requirements for foreign assets and foreign entities, U.S. tax implications of foreign pension and social security plans, and U.S. income and social tax treaty planning. Mr. Kennedy is a member of the Texas Bar and is licensed as a certified accountant in Georgia and Texas. He has a B.A. from Furman University and a J.D. from Vanderbilt University School of Law.

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Alison N. Dougherty
Managing Member
Googolplex Tax, LLC

Ms. Dougherty provides U.S. tax reporting, compliance, consulting, planning, and structuring solutions to U.S. and foreign corporations, partnerships, LLCs, individuals, and trusts. She specializes in U.S. international tax reporting and compliance with the preparation and review of the U.S. federal Forms 5471, 926, 8992, 8993, 5472, 8865, 8858, 8621, 8804, 8805, Schedules K-2 and K-3, 1116, 1118, 1042, 1042-T, 1042-S, 8832, 8833, 2555, 3520, 3520-A, 5713, 1120-F, 1040-NR, 8288, 8288-A, 8288-B, 8233, 8840, 8843, 8854, 8938, and FBAR. Ms. Dougherty has extensive experience working with U.S. businesses and individuals with outbound activities in foreign countries. She has also worked with foreign companies and nonresident individuals with inbound activities in the United States. Ms. Dougherty has significant experience with U.S. nonresident withholding tax, foreign partnership withholding tax, and FIRPTA withholding tax. She has managed U.S. tax compliance and advisory client engagements for U.S. C corporations, S corporations, partnerships, LLCs, U.S. individuals, U.S. trusts, foreign corporations, foreign partnerships, foreign LLCs, nonresident individuals, and foreign  trusts. 





Ms. Dougherty is a CPA and a tax attorney with more than 15 years of combined experience in public accounting, the practice of law, and corporate industry. She was previously a tax partner in a large regional public accounting firm in the Washington, DC area. Ms. Dougherty has served clients in various industries including technology, U.S. government contracting, commercial services, telecommunications, real estate, investment partnerships, commodities, high net worth individuals, and family offices. She has also served as a technical resource to other CPAs, accountants, tax professionals, public accounting firms, attorneys, and law firms.  

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Description

U.S. persons who own any "qualifying interest" in a foreign partnership must report those interests on Form 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships. Failure to accurately file Form 8865 can result in harsh penalties. The form requires data presentation that ranges from simple to highly involved on the return and its associated schedules.

The Code lists four categories of taxpayers who are subject to Form 8865 filing requirements, based on the taxpayer's level of ownership or control over the foreign partnership or engagement in specified transactions with the entity. Determining which category a taxpayer fits into is a complicated exercise for tax advisers and compliance professionals.

IRS' emphasis on international tax compliance makes proper compliance with this return a high priority. The Service has been automatically imposing hefty penalties on late and non-filers in the past few years, and this trend will almost certainly continue as the IRS proceeds with its focus on foreign tax reporting failures.

Listen as our panel of experienced tax advisers identifies the most difficult aspects of preparing Form 8865 for reporting foreign partnership ownership and offers tools to meet those challenges. The panel will outline approaches for you to correctly identify taxpayer category, determine the allocable share of foreign income, report tax basis capital, and stay ahead of potential audit red flags and other errors.

Outline

  1. Purpose of Form 8865
  2. Categories of taxpayers subject to Form 8865 filing requirements
    1. Category 1: Control (50 percent test)
    2. Category 2: U.S. controlled partnership
    3. Category 3: Contribution of property to a foreign partnership
    4. Category 4: Other filing requirements
  3. Preparation of Form 8865
  4. Schedule K-2 and K-3 reporting requirements
  5. Schedules
  6. Difficult compliance issues related to Form 8865
  7. IRS enforcement and audit environment to date

Benefits

The panel will discuss these and other important topics:

  • Determining the categories of U.S. persons required to file Form 8865
  • Reporting the income and expense statements and balance sheets for taxpayers with 10 percent or more interest in a foreign partnership or flow-through LLC
  • Grasp key U.S. international tax reporting rules and obligations of U.S. persons with interests in foreign partnerships
  • Schedule K-2 and K-3 reporting requirements
  • Avoid audit red flags and common, serious errors that the Service looks for in Form 8865 and its schedules

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine how to arrive at correct data to complete IRS Form 8865
  • Indicate the criteria and reporting requirements for foreign entities to elect their classification for U.S. tax purposes
  • Identify the various schedules of IRS Form 8865 and their uses
  • Recognize the essential U.S. international tax reporting rules and obligations of U.S. persons with interests in foreign partnerships
  • Distinguish between the audit red flags and common but serious errors that the IRS looks for in Form 8865

  • 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 plus business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of foreign information reporting requirements and ownership attribution rules; familiarity with foreign partnership structures and identifying foreign-source income.

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).