BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

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, December 12, 2024

  • 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 tax counsel and ERISA attorneys a detailed analysis of the tax rules governing foreign pension accounts, with a specific focus on avoiding penalties for noncompliance. The webinar will go beyond the basics to offer useful practice pointers on the application of IRC 402(b) to foreign pensions and annuities, the difference between foreign and U.S. qualified plans, the IRS approaches to foreign pensions during examinations, and tips to prevent potentially costly tax penalties and sanctions.

Faculty

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.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
James P. Klein
Senior Counsel
Pillsbury Winthrop Shaw Pittman LLP

Mr. Klein focuses his practice in the areas of executive compensation and benefits, and tax. He has broad experience servicing clients in the areas of employee benefits, retirement plans, insurance and in the international taxation of compensation and benefits, from the employee and employer perspective. He represents companies on U.S. and non-U.S. tax and labor issues and works with corporations in ensuring that their employee benefit plans comply with ERISA.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

The IRS' treatment of foreign pensions held by U.S. taxpayers presents attorneys and advisers with significant compliance challenges. To ensure compliance, attorneys and advisers must fully understand IRC 402(b)'s application to foreign pensions and annuities.

Most foreign retirement account plans are not considered "qualified plans" under IRC 401(a), which means the accounts generally do not qualify for tax-deferral treatment; instead, these accounts are governed by Section 402(b) as a foreign trust. Depending on the IRS application of 402(b), employees holding foreign retirement accounts (and their beneficiaries) may receive harsher tax treatment than that of other non-tax-favored deferred compensation arrangements.

Tax advisers must thoroughly understand the IRS rules on reporting foreign retirement accounts and how the Service may approach compliance examinations. With penalties for failure to file Form 3520-A set at a minimum of $10,000 per year, the consequences of a missed or incorrect filing are costly.

Listen as our panel offers practice pointers on the IRS' approaches to foreign pensions during examinations.

Outline

  1. Information reporting and classification of foreign pensions, annuities, and Social Security
  2. Differentiation between foreign plans and "U.S. qualified plans"
  3. Section 402(b) provisions and treatment
  4. Grantor trust treatment
  5. Tax treaty applicability
  6. Identifying and remedying misreporting

Benefits

The panel will review these and other tactical issues:

  • Understanding the IRS' position and tests for grantor vs. employee trusts
  • The IRS' 402(b) focus and when bifurcation is appropriate
  • Foreign pensions of highly compensated employees
  • Form 3520-A: when is it required along with Forms 3520, FBAR, and 8938; penalty mitigation strategies
  • The treatment of PFICs inside a foreign pension
  • Using tax treaties to limit potential liability
  • Whether or not to use a disclosure program to correct past misreporting

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Differentiate between employer and grantor trusts in circumstances of nonqualified retirement accounts under IRC 402(b)
  • Recognize when bifurcation of a retirement account treatment might alleviate tax and/or reporting burden
  • Determine appropriate tax treatment and reporting requirements by type of foreign retirement/trust account
  • Identify when a voluntary disclosure program might be beneficial in correcting prior years' misreporting
  • Discern when to avail a taxpayer of a treaty provision to seek relief from either a reporting or examination assessment

  • 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).