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  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Determining U.S. Shareholder and CFC Status

Defining U.S. Shareholders and CFCs; Direct, Indirect and Constructive Ownership; Form 5471 Categories

$197.00

This course is $0 with these passes:

CPE
ALL
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About the Course

Introduction

This webinar will analyze the rules for determining U.S. shareholder and controlled foreign corporation (CFC) status, including determining direct, indirect, and constructive ownership. Our panel of knowledgeable global tax veterans will provide real world examples that walk international practitioners through these complex determinations.

Description

A U.S. person includes a citizen or resident of the United States, a domestic partnership, a domestic corporation, domestic estates, and certain trusts (IRC Sec 7701(a)(30)).

A U.S. shareholder is any U.S. person who owns or is considered as owning 10 percent or more of the total combined voting power or 10 percent or more of the total value of shares of stock of a foreign corporation (IRC Sec 951(b)).

And, a CFC is a foreign corporation owned (directly, indirectly, or constructively) by U.S. shareholders, whose ownership is more than 50 percent of the combined voting power or value of the stock of a foreign corporation (IRC Sec 957(a)).

Many tax professionals struggle with determining who qualifies as a U.S. shareholder, which foreign entities meet the definition of a CFC, and whether direct, indirect, and particularly constructive ownership rules may apply. The Tax Cuts and Jobs Act of 2017 (TCJA) further complicated these analyses with the repeal of Section 958(b)(4). This Section prevented the attribution of stock ownership from foreign entities to lower-level U.S. persons. Consequently, more U.S. persons are now treated as U.S. shareholders.

These determinations, however, are necessary. The IRS has in place a practice unit under the Large Business & International (LB&I) Division devoted to Section 958 Rules for Determining Stock Ownership. These same determinations impact whether Form 5471, Information Return of U.S. Persons With Respect to CFCs, must be filed. Not filing or incorrectly filing Form 5471 when required can generate harsh penalties.

Listen as our panel of experienced international tax advisers provides actionable steps and examples for determining U.S. shareholder and CFC status.

Presented By

Patrick J. McCormick
Partner
Rimon, P.C.

Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has published assorted national articles and given innumerous national and local presentations on assorted areas of international tax. He is licensed to practice in the State of New Jersey and the Commonwealth of Pennsylvania.

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Laura M. Tshilumba, CPA
International Tax Expert and CPE Instructor
Parent: Your Expat Tax CPA

Ms. Tshilumba, CPA, is an international tax expert and CPE instructor with over 20 years of experience in public accounting and industry. Her multifaceted experience spans across various industries, giving her a profound understanding of the unique tax challenges faced by businesses and individuals. Whether working with multinational corporations, expatriates, solo entrepreneurs, or high-net-worth individuals, Ms. Tshilumba possesses the versatility and insight needed to navigate the intricate web of U.S. international tax regulations. Her expertise includes global mobility, expatriation tax, tax equalization, tax clauses in global assignment contracts, UN employee taxation, mergers & acquisitions, cross-border compliance, FIRPTA, delinquent foreign disclosures, and IRS controversy resolution. Ms. Tshilumba is also a Certifying Acceptance Agent (CAA) and works closely with immigration attorneys and real estate professionals to navigate U.S. tax compliance for foreign nationals.

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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).

Date + Time

  • event

    Friday, May 16, 2025

  • schedule

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

  1. Determining U.S. shareholder and CFC status: introduction
  2. U.S. person
  3. U.S. shareholder
  4. CFCs
  5. Attribution rules
    1. Direct ownership
    2. Indirect ownership
    3. Constructive ownership
  6. Safe harbor relief
  7. Form 5471

The panel will cover these and other critical issues:

  • Which categories of Form 5471 filers apply based on CFC status
  • Common misunderstandings that lead to incorrect CFC classifications
  • Attribution rules and ownership thresholds for U.S. shareholders
  • Real life examples clarifying the complexities of CFC status determinations

Learning Objectives

After completing this course, you will be able to:

  • Identify U.S. persons under IRC Section 7701(a)(30)
  • Determine who qualifies as a U.S. shareholder
  • Ascertain the criteria for indirect ownership of a CFC
  • Decide how to avoid common Form 5471 pitfalls
  • 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, 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

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 Barbri-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 .