BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Thursday, July 15, 2021

  • schedule Time

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

  • timer Program Length

    90 minutes

Credit Information

  • 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).

$347.00
CLE
CPE
ALL

This CLE/CPE course will provide a deep dive into the planning opportunities and reporting requirements for U.S.-based trusts that must file as non-domestic trusts for income tax purposes. The panel will discuss what constitutes "substantial decisions by non-U.S. persons" for trusts, structuring considerations to maximize income tax savings by utilizing a U.S.-based foreign trust, and detail how FATCA and other foreign tax reporting requirements on non-domestic entities impact trust drafting and operation.

Faculty

Jennifer J. Wioncek
Partner
Bilzin Sumberg Baena Price & Axelrod LLP

Ms. Wioncek is an experienced tax lawyer handling the needs of high net worth clients and cross-border families. The depth of her experience includes advising on various international and domestic trust and estate planning, pre-immigration planning, expatriation planning, international reporting and compliance, offshore voluntary compliance, and acquisition, maintenance, and sale of U.S. real estate by foreigners.

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Nina Krauthamer
Member
Ruchelman, PLLC

Ms. Krauthamer focuses her practice on federal, state and international tax matters involving high net worth individuals, public and private companies and not-for-profit organizations. She regularly advises foreign individuals and companies on U.S. tax matters, including planning for investment in U.S. real estate. She reviews complex corporate mergers and acquisitions, and structures partnerships, joint ventures and limited liability companies in both the domestic and cross-border contexts.

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Osvaldo Garcia
Attorney
Bilzin Sumberg Baena Price & Axelrod LLP

Mr. Garcia is a tax and private wealth planning attorney who focuses on international and domestic estate planning, estate administration, trust administration, tax controversies and matters of international regulatory compliance. Since 2017, Osvaldo has been selected from among a pool of global contenders to the "Ones to Watch" directory issued by the Private Client Global Elite, a highly regarded industry list of ultra high net worth legal advisors.

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Description

Even though a trust is incorporated in the U.S., with a U.S-based trustee, it may still be required to be classified as a foreign trust for purposes of U.S. income tax reporting and withholding. Trusts with non-U.S.-based persons making material decisions on the operation of the trust and trusts with non-U.S. settlors must be treated as foreign trusts, even if based in the U.S., and follow the more complicated filing rules for non-domestic trusts.

This classification difference provides sophisticated planning opportunities for tax counsel advising both resident and nonresident individuals. Increasingly, foreign-based trust companies are relocating trusts previously operating offshore into the United States, and U.S.-based trust companies are following suit.

By structuring a trust document properly, tax counsel can help clients maximize both privacy from disclosure and income tax savings. Tax counsel structuring trust documents to operate as foreign trusts while having situs in the U.S. must have detailed knowledge of the FATCA filing requirements to ensure the trust documents achieve the intended tax savings purpose.

Listen as our experienced panel of expert advisers provides a practical guide to navigating the complexities of the planning opportunities of U.S.-based foreign trusts.

Outline

  1. What is a trust for U.S. tax purposes
  2. Determining tax residence of trusts
    • Court test
    • Control test
  3. Grantor trusts with non-U.S. grantors
  4. Chapter 4 FATCA status of U.S.-based trusts under FATCA regulations
  5. Common reporting standard
  6. U.S. tax and information filing obligations for U.S. based foreign grantor trusts
  7. Planning opportunities and structuring considerations for U.S.-based foreign grantor trusts

Benefits

The panel will review these and other critical issues:

  • Court test vs. control test for determining whether a U.S.-based trust is a foreign or domestic trust
  • Foreign filing requirements for all trusts, whether U.S.-based or not, that have foreign assets
  • What are the filing requirements for foreign grantor trusts to certify Chapter 3 withholding status?
  • W-8BEN filing requirements for non-grantor trusts
  • Certifying Chapter 4 FATCA status for U.S.-based trusts filing as a foreign trust

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Apply the court and control tests to determine whether a U.S.-based trust must be treated as a foreign trust for income tax purposes
  • Detail the privacy considerations and tax savings opportunities available in structuring a U.S.-based foreign trust
  • Identify the proper FATCA filing status and required filings of a U.S.-based foreign trust

  • 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 at mid-level within the organization, preparing complex tax forms and schedules for U.S. taxpayers owning or receiving payments from non-US retirement accounts; supervisory authority over other preparers/accountants. Specific knowledge and understanding of basic reporting requirements for U.S. taxpayers with foreign retirement account interests; familiarity with FBAR, FATCA and For 3520 filings

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.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).