U.S.-India Tax Planning: Key Issues, Tax Treaties, FATCA/FBAR Reporting, Passive Income, and Pitfalls to Avoid
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Law
- event Date
Monday, December 16, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
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).
This CLE/CPE webinar will provide tax counsel and advisers with a thorough and practical guide to the tax reporting requirements and planning opportunities for U.S. taxpayers with earnings or assets in India, as well as Indian citizens with U.S. tax reporting obligations. The panel will discuss U.S. tax law and treaty provisions designed to avoid or mitigate double taxation, residency and expatriation rules, foreign tax credits, and reporting obligations for those filing returns in both countries.
Mr. Patel’s practice concentrates on tax, international tax planning, estate planning, and elder law. His focus is on all tax matters including international tax law, foreign bank account disclosures, tax audit defense, and tax appeals. He has advocated over one hundred voluntary tax disclosures for assets before the US Internal Revenue Service. He is a frequent speaker and writer on legal issues affecting tax, foreign account planning, and estate planning.
Mr. Sanghani is a CPA, a Chartered Accountant (India) and a Commerce Graduate from the University of Mumbai. He is the founder of Walkthrough, an India-based outsourcing firm specializing in US Taxation. Mr. Sanghani has extensive expertise in US International Taxation and Cross-Border Compliance and Reporting. He has been collaborating with CPAs, Attorney's and Other Tax Professionals in the US to assist and support them in their advisory, review, compliance or reporting responsibilities in the US. In the Indian context, Mr. Sanghani is a Partner at G T S & Co., Chartered Accountants and leads the firm's international tax practice with focus on cross border structuring, transfer pricing, and Foreign Exchange Management Act (FEMA) compliance.
Mr. Naumoski, joined the firm in 2017, specializes in international taxation and planning strategies. Darko’s tax practice is consumed by international tax matters including U.S. tax aspects of international business such as foreign businesses doing work in the U.S. and U.S. businesses doing work abroad. He assists mid-market multinational clients to create and implement tax structures to minimize worldwide tax which are operationally practical. For foreign-based businesses, Darko and his team are often the first point of contact to steer clients through the different hurdles of doing business in the US giving these clients peace of mind that their businesses are tax compliant in the U.S.
Mr. Navani, a Shareholder at WilkinGuttenplan, joined the firm in 1998. His client roster includes emerging and established businesses in the life sciences, software, manufacturing industries, and other closely held businesses and business owners. Mr. Navani provides income tax planning assistance focusing on a business’s “formation to exit” life cycle. The “formation to exit” includes capitalization, choice of entity, retirement planning, charitable giving strategies, coordination with tax examinations, business sales, and post-sale planning for the business owners. He devotes much of his practice to international tax matters, including U.S. tax aspects of international business, such as foreign businesses doing work in the U.S., U.S. businesses doing work abroad, transfer pricing, and cross-border mergers and acquisitions.
The U.S. and India have significant economic and social ties resulting in a constant flow of cross-border business transactions and citizens migrating between the two countries. Tax counsel and advisers must navigate challenges from interpreting and enforcing U.S. and India tax rules to avoid adverse tax liability from either country.
The U.S. taxes worldwide income, and not all tax-exempt earnings in India are tax-exempt in the U.S. Earnings from these accounts must be identified and included on the individual tax return. In addition, practitioners must understand the tax treatment of investment accounts unique to India when preparing these returns for clients.
The most critical planning challenge is reconciling the U.S. and India rules governing residence and domicile. U.S. domicile rules differ from India, and an inadvertent failure to meet filing obligations due to a misapplication of domicile rules can be costly. Tax advisers serving clients in the U.S. and India will need to understand the domicile rules to avoid costly taxes and penalties.
Other areas of concern in U.S.-India tax planning include treating passive income and tax considerations for retirement accounts, contributions, and withdrawals. The extensive U.S. tax reporting requirements imposed on taxpayers with U.S. filing obligations are hovering over all these concerns.
There are many complexities in filing individual income tax returns for U.S. residents (residents, green card holders, and citizens) who also file India returns. Tax counsel and advisers must understand the nuances of U.S. and India tax returns, applicable tax rates, and methods to maximize the foreign tax credit for double-taxed income.
Listen as our experienced panel provides comprehensive and practical guidance on navigating U.S.-India tax planning and reporting issues.
- Identifying taxpayers with filing obligations in the U.S. and India
- Domicile and residency rules
- Passive and unearned income treatment
- Forms ITR: categories of income and deductions
- U.S. taxation of investment and retirement accounts
- Foreign tax credit
- FATCA and FBAR reporting
- Inheritance taxes
The panel will review these and other key issues:
- Filing obligations in the U.S. and India for certain taxpayers
- India's Forms ITR
- Taxable income, reportable accounts, and FBAR/FATCA filings
- U.S. reporting requirements of India-sourced investments
- Foreign tax credit considering the fiscal year ITR
- Key risks and challenges of passive/unearned income in cross-border situations
- U.S. reporting requirements of India-sourced investments
Learning Objectives
After completing this course, you will be able to:
- Identify easily overlooked Indian reportable accounts held by dual filers
- Ascertain ways to efficiently calculate the foreign tax credit
- Determine tax considerations of beneficiaries receiving Indian assets
- Decide how Indian Form ITR income is taxed on the U.S. Form 1040
- 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 pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.
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.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Related Courses
Income Tax Treatment of SAFEs and Convertible Debt: Navigating Sections 1202 and 1045, Section 368, Section 83
Tuesday, May 20, 2025
1:00 p.m. ET./10:00 a.m. PT
FBAR Investigations and Litigation: Compliance Traps, IRS Guidance, Defense Strategies, Recent Cases, Penalties
Thursday, May 29, 2025
1:00 p.m. ET./10:00 a.m. PT
2025 Tax Bill and Pass-Through Entities: Key Provisions, Planning Techniques, Loopholes, and Limitations
Tuesday, May 27, 2025
1:00 p.m. ET./10:00 a.m. PT