A two-day basic level course with live group instruction on fundamental tax issues involving U.S. international tax for tax and non-tax professionals.

Course Level: basic; Delivery Method: group live

Learning Objectives

After attending this event, participants will be able to

• Obtain a working knowledge of the basic international tax principles applied in the United States and in tax systems in other countries
• Learn how the U.S. international tax system operates and how companies and individuals become liable for U.S. income or withholding tax
• Find out the latest tax and business requirements in structuring foreign operations and activities
• Discover how the U.S. foreign tax credit mechanism operates and reduces your US tax liability dollar-for-dollar
• Learn how the Subpart F provisions terminate deferral of US tax on foreign profits and what you can do to prevent it
• Determine how your intercompany transactions are subject to scrutiny by the IRS and your tax exposure on audit

FEATURING SPECIAL SESSIONS on U.S. withholding tax and key tax issues facing inbound investors

Conference materials include a BNA Portfolio for all paid attendees. 

Prerequisites

There are no prerequisites for attending this program.

SUBSTITUTIONS, CANCELLATIONS & COMPLAINTS

If you are unable to attend this event, you may: transfer your registration to another person from your company for the same event; or transfer your registration to a substitute event listed on our web site. In either instance, there will be no charge or penalty for substitution.

To request a transfer, contact customercare@bna.com with the new attendee or substitute event information more than 5 business days prior to the conference start date. On the first day of the event, absent attendees will be considered “no shows” and will not be eligible for a refund, transfer, or substitute event. Cancellations must be made in writing to customercare@bna.com more than 5 business days before the event and will be assessed a $350 conference setup fee. Cancellations will not be accepted if notice is received fewer than 5 business days before the event.

For more information regarding administrative policies, such as complaints and cancellations, please contact us at 800.372.1033, or e-mail customercare@bna.com.

Washington D.C. - Bloomberg BNA
1801 S. Bell St
Arlington, VA 22202
Tel: 800.372.1033

Day One

7:30 am Continental Breakfast

8:00 am Registration

8:30 am Chairman’s Introduction

8:45 am Fundamentals of International Tax

• Understanding territorial v. worldwide tax systems
   
• Residence v. activity-based taxing jurisdiction
   
• Avoidance of double taxation – exclusion and foreign tax credit
   
• Introduction to tax treaties and permanent establishments

9:30 am Understanding the U.S. International Tax System

• Definitions and source rules under Secs. 861-864 – statutory framework for the U.S. international tax provisions in the Code
   
• When is the income of a foreign corporation or nonresident alien subject to U.S. tax?
   
• What constitutes FDAPI and when is withholding required?
   
• U.S. international tax research – how to locate tax opinions, IRS pronouncements and new legislation

10:15 am Break for Refreshments

10:30 am Reporting the Results of Foreign Operations

• Obtaining the data from overseas for preparing and filing Form 5471 - key issues in reviewing Form 5471 for foreign affiliates
   
• Completing Form 8858 for foreign disregarded (CTB) entities
   
• Computing earnings and profits – reconciliation with financial statement retained earnings
   
• Review of key U.S. international reporting forms – Form 926, 1118, TD F 90-22.1 and 8838

12:15 pm LUNCHEON

1:30 pm Computing Foreign Tax Credit Benefits

• What constitutes a creditable income tax?
• Calculating foreign source taxable income, including expense apportionment under Reg. Sec. 1.861-8
   
• Understanding the overall and separate basket foreign tax credit limitations
   
• How to compute the FTC gross-up for dividends from foreign subsidiaries
   
• Treatment of overall foreign or domestic loss in determining FTC benefits

3:00 pm Break for Refreshments

3:15 pm Understanding the Subpart F Provisions

• Understanding the hopscotch effect of deemed dividends under Subpart F - planning for investments in U.S. property
   
• Applying the Subpart F rules to foreign activities of CFCs
   
• Treatment of previously-taxed income (PTI) on subsequent distributions and reorganizations
   
• Computing the U.S. tax on gain from the sale of stock in a CFC

5:00 pm Meeting Adjourns for the Day

Day Two

8:00 am Continental Breakfast

9:00 am U.S. Tax Aspects of Establishing a Foreign Corporation

• How to qualify an outbound transfer of assets to a foreign subsidiary or joint venture as tax-free under Sec. 367(a) – reporting the transfer on Form 926
   
• Special issues in acquiring a foreign corporation
   
• Organizing a foreign corporation or holding company – completing a Gain Recognition Agreement (Form 8838)
   
• Special issues involving liquidations, non-taxable mergers and reorganizations of CFCs

10:30 am Break for Refreshments

10:45 am Understanding the U.S. Transfer Pricing Regime under Sec. 482

• How U.S. companies today are expected to comply with the Sec. 482 arm’s-length standard – income shifting v. clear reflection of income
   
• When Sec. 482 applies in the international context – definition of related party and application to pass-through entities
   
• Finding a database for comparable profits methods
   
• Documenting intercompany sales for Forms 5471 and 5472

12:15 pm LUNCHEON

1:15 pm Complying with the U.S. Withholding Tax Regime

• U.S. withholding tax issues related to repatriation through FDAP-type payments (e.g. interest, dividends and royalties)
   
• Using management fee and Cost- Sharing Arrangement payments as a repatriation tool
   
• Interrelationship with U.S. tax treaty compliance
   
• Special issues in preparing FormsW-8BEN,W-8ECI, W-8EXP, or W-8IMY for reducing or exempting payments from U.S. withholding tax

2:15 pm Break for Refreshments

2:30 pm Source Of Income & Expense Apportionment Rules

• How U.S. Taxes Companies with Foreign Source Income
   
• Indentifying Foreign Source Income & Taxes-dividends, royalties and interest
   
• Tax Strategies For Apportioning Expenses & Foreign Source Income Factual v Gross to Gross
   
• Understanding the Special Apportionment Rules for interest & Research Expenses

4:30 pm Meeting Ends

EDUCATIONAL COURSE CREDIT

Up To 16 CPE Credit hours available

Bloomberg BNA is registered with the National Association of the State Boards of Accountancy 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. Complaints regarding registered sponsors may be addressed to NASBA, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417.

Up to 16 CLE Credit hours available

Bloomberg BNA will apply for continuing legal education credits in any state or jurisdiction where available. For more information, please contact Bloomberg BNA customer service at 800.372.1033 and ask to speak to the CLE Accreditations Coordinator, or email us at accreditations@bna.com .

Hardship Policy

Bloomberg BNA offers a hardship policy for CPAs and other tax and accounting professionals who wish to attend our live conference and seminars. Individuals must earn less than $50,000 annually in order to qualify. For individuals who are unemployed or earning less than $35,000 per year, a full discount off the price of registration for the program will be awarded. Individuals earning between $35,000 and $50,000 per year will receive a 50% discount off the price of the program.

If an individual wishes to submit a case for hardship, he or she must contact Bloomberg BNA directly at accreditations@bna.com. Please include the following information with your request: complete contact information, program for which a hardship reduction is being requested, requested amount for hardship reduction, and reason for applying for hardship. Please note that requests will not be considered until 30 days from the program date and that individuals may only apply for a hardship reduction once within a 12-month period. Bloomberg BNA reserves the right to make a final determination on a case-by-case basis. Our decision for granting a hardship is final and submission does not constitute acceptance.