Description
The reporting considerations for foreign inbound activity by foreign taxpayers in the U.S. are complex. To determine how income in the U.S. is taxed and what tax withholding is required, practitioners must first determine the type of income generated and then must understand the withholding and documentation requirements surrounding such income. ECI is income generally connected with a U.S. trade or business. On the other hand, income that is not ECI and U.S.-sourced may be fixed or determinable, annual, or periodic income which may be considered FDAP. FDAP income is generally subject to a 30% withholding tax unless an income tax treaty or other income tax provision can apply to reduce the withholding tax rate.
Generally, nonresidents with ECI should file Form 1040NR, U.S. Nonresident Alien Income Tax Return. Similarly, foreign corporations with ECI generally should file Form 1120-F, U.S. Income Tax Return of a Foreign Corporation. Both nonresidents and foreign corporations with U.S. withholding may want to file if an opportunity exists to obtain a refund of the withheld taxes. Often there are ways to mitigate or reduce U.S. withholding taxes at source, depending on income tax treaties and other positions taken. Tax practitioners working with foreign taxpayers should understand basic terms, concepts, reporting, and documentation requirements for foreign inbound transactions.
Listen as our panel of international tax reporting professionals walks you through foreign inbound transactions, including U.S. withholding and reporting requirements.
Presented By
Ms. Fontaine is a Senior Manager in the firm's International Tax Services group. With nearly 15 years of experience, she brings a wealth of expertise in the field of International Taxation. Ms. Fontaine focuses on foreign trusts, foreign individuals, treaty analysis, expatriation and immigration planning. She is a highly skilled professional providing advanced US planning, consulting, controversy, and compliance services to international individuals and foreign trusts. Ms. Fontaine has extensive knowledge and experience in international taxation and has been honed through her previous role as a Senior Manager at a mid-sized accounting firm where she specialized in advanced planning and controversy work for large foreign trusts, foreign individuals, and foreign partnerships.
Mr. Mainguy has more than eight years of public accounting experience providing international tax services to clients in a wide range of industries, as well as individuals and publicly traded companies. He has extensive experience working with multinational corporate clients on consulting and compliance projects, including global business model optimization and restructuring projects from the design and feasibility stage through implementation. Mr. Mainguy also has expertise in U.S. tax issues relating to both inbound and outbound investments, as well as navigating the increasingly complex network of reporting, disclosure, and withholding requirements arising from doing business in a global economy.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
Wednesday, December 10, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Foreign inbound reporting: introduction
II. Effectively connected income (ECI)
III. Fixed, determinable, annual, or periodic income (FDAP)
IV. Partnerships with non-U.S. owners
V. Withholding requirements
VI. Nonresident tax returns: Form 1040NR
VII. Returns of foreign corporations: Form 1120F
VIII. Other foreign inbound reporting considerations
The panel will cover these and other key issues:
- What is FDAP income, and how is it taxed in the U.S.?
- Who is considered a nonresident alien and required to file Form 1040NR?
- What are the U.S. withholding obligations of withholding agents?
- When is a foreign business considered to have a U.S. trade or business and ECI?
Learning Objectives
After completing this course, you will be able to:
- Recognize how the U.S. foreign tax reporting regime is structured
- Understand the requirements for reporting inbound activities
- Identify the reporting requirements of U.S. resident taxpayers and foreign individuals
- Determine who is required to file Form 1120-F
- Recognize reportable transactions with related parties that must be reported on Form 5472
- Establish when there is ECI and the tax consequences
- 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.
BARBRI 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.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Strafford-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
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