This intermediate tax planning session is for law and accounting firm professionals who advise clients on structuring cross border transactions, and on international tax planning and controversy matters; in-house tax professionals involved in cross-border and internal planning and in IRS audits and appeals of international issues; and tax attorneys who want to stay on top of what’s happening in the international tax arena. (Field of Study: Taxes)
Earn Up to 15 CPE/CLE Credits
Monday, August 15, 2016
8:00 AM—Registration and Continental Breakfast
8:45 AM—Structuring of Overseas Operations
- Choosing the right vehicle for investing overseas – branch v. corporation v. hybrid entity v. holding companies – filing the election on Form 8832
- Understanding and planning with the check the box rules for foreign entities
- Interrelationship with tax treaty planning, including permanent establishments and limitation on benefits provisions
- U.S. tax consequences of dual consolidated losses – rules for overall U.S. or foreign losses
- Impact of U.S. tax reform and BEPS considerations
- Overview of Proposed Section 385 Regulations
R. David Young, Partner, KPMG LLP, Boston
10:15 AM—Break for Refreshments
10:30 AM—Expense Apportionment Practice Update
- How expense apportionment affects credits foreign taxes and deduction of U.S. expenses
- Selecting the best apportionment method – gross-to-gross v. factual apportionment
- Understanding the rules for interest apportionment – effect of exchange rates on foreign asset bases
- Strategies for minimizing the apportionment of research, state tax and S,G&A expenses to foreign source income
Joshua A. Leclair, Senior Manager, KPMG LLP, Boston
12:00 PM—Luncheon
1:00 PM—Computing Direct and Indirect Foreign Tax Credit Benefits
- Obtaining foreign tax credit benefits for foreign withholding taxes – what constitutes a creditable income tax
- Applying the gross-up formula for foreign taxes
- Computing the separate foreign tax credit basket limitations – separate limitation loss recapture
- Applying the related party look-through rules for dividend and interest payments between related CFCs and 10/50 entities
- How FTC limitations increase the US tax on dividends under Subpart F and Sec. 956
- Section 901 (m) covered asset acquisition rules
Chris Kelley, Partner, Ernst & Young LLP, Boston
Amber Hu, Manager, Ernst & Young LLP, Boston
2:45 PM—Break for Refreshments
3:00 PM—How the Subpart F Anti-Tax Deferral Rules Operate
- Identifying CFCs and “U.S. Shareholders”
- Definition of U.S. shareholder – vote or value ownership
- Understanding the regulations involving Subpart F FPHC income
- Working with the branch rules for foreign sales and manufacturing activities
- Exceptions and limitations on application of the Subpart F rules
- Affirmative use of Subpart F
- Avoiding investments in U.S. property by first or lower-tier CFCs
- Implications of Proposed Section 385 Regulations
Mike Hardgrove, Partner, DLP Piper LLP, Boston
4:45 PM—Meeting Adjourns for the Day
Tuesday, August 16, 2016
8:00 AM—Continental Breakfast
8:30 AM—How to Compute Foreign Exchange Gain (Loss)
- Translation v. transaction gain (loss) – determining the functional currency for QBUs under Sec. 985
- Determining the character and source of Sec. 988 transactions
- Translation rules for foreign taxes and earnings and profits under Sec. 986
- Computing foreign exchange gain (loss) on remittances involving branches and foreign disregarded entities under Sec. 987
To Be Announced, Executive Director, Ernst & Young LLP, Boston
10:00 AM—Refreshment Break
10:30 AM—Tax Reporting for Foreign Operations and Activities
- Identifying foreign source income from branches and other pass-through entities
- Understanding the functional currency concept of QBUs – translation of income and Balance Sheet items, E&P and foreign taxes
- Preparing Form 5471 – analyzing the income statement and balance sheet for Subpart F and transfer pricing adjustments
- Tracking Earnings & Profits on Form 5471 for foreign dividend and gross-up calculations
- Disclosing foreign bank accounts on FinCen 114 and other FATCA reporting requirements
- Review of key U.S. international tax reporting forms – Form 926, 1118, 8838 and 8858
- Preparation of Form 8886, Schedule M-3 and Schedule UTP for reporting significant book-tax differences
- Identifying PFICs and preparing Form 8621
Chris Sandry, Senior Manager Ernst & Young LLP, Boston
Caitlin Ball, Senior Manager, Ernst & Young LLP, Boston
12:00 PM—Luncheon
12:45 PM—Transfer Pricing Developments
- Impact of IRS administrative changes on transfer pricing, APAs and Competent Authority cases
- Developments in cost-sharing, intellectual property and regulatory developments
- Update on BEPS and transfer pricing
- Proposed country by country reporting regulations, changes to
- Section 482 aggregation rules and the treatment to outbound transfer under sections 367 and 721
Kevin Burke, Partner, Ernst & Young LLP, Boston
2:15 PM—Refreshments Break
2:30 PM—International Mergers and Acquisitions under Sec. 367
- Acquisition of foreign targets
- Application of U.S. targets with foreign subsidiaries and foreign multinationals acquiring U.S. targets
- Using cash offshore to fund an acquisition of a U.S. target
- Working with the new rules for the transfer of foreign tangible and intangible assets – Secs 367(a) and 367(d)
- International stock transfers and inversions under Sections 367(a) and Section 7874
- Application of Sec. 367(b) to inbound and foreign-to-foreign stock transfers – deferral of negotiation of Sec. 1248 E&P
- Application of New Proposed Section 385 Regulations to intercompany debts
Mike Hardgrove, Partner, DLP Piper LLP, Boston
4:00 PM—Conference Concludes
Register Now!
Conference Location
DLP Piper LLP
33 Arch Street, Boston, MA 02110
(617) 406-6000
Hotel Accommodations are at your discretion, we suggest:
Langham Hotel
250 Franklin Street, Boston, MA 02110
(617) 451-1900
Club Quarters Boston
161 Devonshire Street, Boston, MA 02110
(617) 357-6400
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