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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, November 21, 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 course will provide tax advisers and compliance professionals with a thorough and practical guide to the issues faced by U.S. partnerships with foreign partners. The panel will discuss the various withholding and reporting requirements with respect to non-U.S. partners.

Faculty

Jack R. Brister
Managing Member
International Wealth Tax Advisors, LLC

Mr. Brister specializes in U.S. tax planning and compliance for non-U.S. families with international wealth and asset protection structures which include foreign trusts, estates and foundations that have a U.S. connection, as well as foreign companies wanting to do business in the U.S. He also specializes in foreign investment in U.S. real property, and other U.S. assets, pre-immigration tax planning, U.S. expatriation matters, U.S. persons in receipt of foreign gifts and inheritances, foreign accounts and assets compliance, offshore voluntary disclosures, FATCA registration, executives working and living abroad and annual reporting. He has been widely published, in addition to speaking at numerous international engagements.

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Joshua S. Kaplan
Senior Managing Director
KPMG US, LLP

Mr. Kaplan provides advice on a wide range of inbound and outbound international tax issues, with a particular focus on inbound investment, including FIRPTA, section 892, branch profits tax, U.S. trade or business and effectively connected income (“ECI”) determinations, treaty qualification and permanent establishment issue, sales of ECI partnerships by foreign persons, and chapter 3 withholding. He routinely advises clients on buy-side and sell-side FIRPTA due diligence issues, FIRPTA withholding and reporting requirements, tax-efficient structuring for funds and REITS with foreign investors, and the application of the FIRPTA nonrecognition rules to corporate formation, restructuring, and divestiture transactions. Josh also has significant experience with U.S. real property holding corporation determinations, particularly in the power generation, electric transmission and distribution, and telecommunications industries.

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Description

Tax advisers serving partnerships with foreign (non-U.S.) partners have unique tax compliance and planning challenges. U.S. tax law provides several different withholding requirements for foreign partners, depending on the type of income the partnership receives and how it conducts its activities. In addition, the Service requires U.S. partnerships to collect and report specific information regarding their non-U.S. partners. Adding to the complexity, tax reform has made several significant alterations to the withholding and reporting requirements for foreign partners of U.S. partnerships.

For partnerships engaged in a U.S. trade or business, their income typically will be deemed effectively connected income, which has different tax results for both withholding consequences and tax rates than income not generated from being engaged in a trade or business.

For income that is not effectively connected to a U.S. trade or business, partnerships will have separate withholding and reporting obligations. Importantly, the overlay of FATCA withholding requirements to the Chapter 3 regime often means partnerships and other business entities must make two different determinations of whether withholding is required. Partnership tax advisers also must understand the effect of treaties on the treatment of a partnership and its partners, as they may reduce or eliminate withholding requirements and income taxes on certain types of income.

Finally, partners and partnerships must also comply with special withholding and reporting rules upon the sale or transfer of a partnership interest. In addition to the existing FIRPTA regime, tax reform introduced a new Section 1446(f) which added additional withholding and reporting obligations.

Listen as our expert panel provides a comprehensive and practical guide to the tax planning and reporting issues specific to partnerships with foreign partners.

Outline

  1. Income taxation of partnerships with foreign partners
  2. Blocker corporations and foreign partnerships
  3. Partnership Chapter 3 withholding and reporting
  4. Partnership Chapter 4 (FATCA) withholding and reporting
  5. IRC Section 1446(f) withholding requirements
  6. Filing requirements

Benefits

The panel will discuss these and other important issues:

  • Documentation partnerships must obtain from foreign partners
  • Withholding requirements for effectively-connected income for foreign partners under Section 1446
  • Withholding requirements for FDAP income under Chapters 3 and 4, including the impact of treaty positions on these obligations
  • Withholding requirements under FIRPTA and Section 1446(f) upon transfers of partnership interests
  • Impact of blocker corporations and other intermediate entities
  • Filing requirements

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine the withholding requirements for EIC for foreign partners under IRC 1446(f)
  • Ascertain the withholding requirements on foreign partners
  • Verify the reporting requirements for U.S. partnerships with foreign partners are met
  • Identify the filing requirements whenever a foreign partner sells or transfers a partnership interest
  • Establish when there is ECI and the tax consequences

  • 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 partnership and other complex tax forms, supervising other preparers/accountants. Specific knowledge and understanding of partnership structure, domestic and foreign partnerships, withholding and reporting requirements, and effectively connected income (EIC); familiarity with FDAP and FIRPTA income, FATCA reporting, and treaties and intergovernmental agreements potential impact on withholding requirements.

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).