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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Thursday, September 19, 2024

  • schedule Time

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

  • timer Program Length

    110 minutes

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).

$197.00
CPE
ALL

This webinar will discuss defining, taxing, and withholding obligations of effectively connected income (ECI). Our panel of astute foreign tax specialists will review trade or business income requirements, fixed, determinable, annual, or periodic (FDAP) income, the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), and how U.S. income tax treaties treat ECI.

Faculty

C. Edward Kennedy
Managing Director
C Edward Kennedy Jr, PC

Mr. Kennedy has more than 42 years of experience dealing with a variety of international tax matters, specializing in tax consulting services to a wide variety of clients ranging from closely held companies to multi-national businesses. His expertise includes domestic and foreign income and social security tax planning, tax compliance for individuals and corporations, tax treatment of incentive compensation plans, international assignment program administration, and international assignment policy design. Mr. Kennedy has also served as the U.S. practice leader for international social security matters for a Big 4 accounting firm. He is a frequent speaker in the areas of international tax compliance and reporting obligations U.S. information reporting requirements for foreign assets and foreign entities, U.S. tax implications of foreign pension and social security plans, and U.S. income and social tax treaty planning. Mr. Kennedy is a member of the Texas Bar and is licensed as a certified accountant in Georgia and Texas. He has a B.A. from Furman University and a J.D. from Vanderbilt University School of Law.

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Kimberlee S.P. Murphy
Partner, Market Leader, International Services
Withum Smith + Brown, PC

Ms. Murphy is Withum’s International Services Market Leader with over 30 years of accounting and tax experience, and expertise in International Structuring, FATCA, Transfer Pricing, Inbound and Outbound Transactions, Expatriation Taxation/Global Mobility, and Executive Compensation Planning. She serves on HLB’s International Tax Committee and has co-chaired the HLB North America Tax Services Group. Ms. Murphy has authored articles for numerous local publications and has been a frequent lecturer on tax, business and financial matters to the general public, and professional and business organizations. She coordinates and conducts continuing professional education training on all types of tax issues for the firm’s accountants and outside professionals.

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Description

Generally speaking, income generated by a nonresident's trade or businesses within the U.S. is considered ECI. Determining whether the activity is a trade or business is critical because ECI is taxed on a net rather than gross basis, unlike fixed, determinable, annual or periodic (FDAP), which is taxed on a gross basis. In other words, deductions are allowed against income received, and this income is taxed using the same graduated rates applicable to U.S. citizens.

As with most tax matters, defining a trade or business is complicated. Certain types of income, for example, FDAP, are treated as ECI. Individuals who are members of a partnership engaged in a U.S. trade or business are likewise considered engaged in a trade or business. For businesses operating in the U.S., whether a foreigner's activity rises to the level of being a trade or business is a matter of facts and circumstances. U.S. income tax treaties can provide some relief. These treaties establish that a U.S. permanent establishment is required to tax business income. International tax advisers working with multinational taxpayers and businesses must fully grasp the criteria for ECI.

Listen as our panel of international tax matter experts clarifies the taxation and withholding requirements of ECI for multinational taxpayers.

Outline

  1. Statutory framework: IRC §864(c)
  2. Comparison with FDAP income
  3. What is a trade or business
  4. Special situations
  5. Impact of U.S. income tax treaties
  6. Claiming ECI income
  7. Payor reporting of ECI income

Benefits

The panel will cover these and other critical issues:

  • The statutory framework for IRC Section 864(c)
  • What is a trade or business?
  • How FDAP income compares with effectively connected income
  • The impact of U.S. income tax treaties on ECI
  • Withholding and reporting requirements for ECI

NASBA Details

Learning Objectives:

After completing this course, you will be able to:

  • Identify FDAP income
  • Decide how U.S. income tax treaties impact taxation of ECI
  • Determine applicable withholding rates for foreign income
  • Ascertain differences in taxation of ECI income and other types of income earned by nonresidents

  • 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.

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).