Form 8858 Reporting of U.S. Owned Foreign Disregarded Entities: Ownership and Correct Filing Status
Information Return Requirements for Check-the-Box Structures Including Indirect and Constructive Ownership
Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Preparer
- event Date
Tuesday, May 27, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
110 minutes
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
This course will guide tax advisers to the U.S. reporting requirements for ownership of foreign disregarded entities (FDEs) on IRS Form 8858. The panel will offer section-by-section detail on completing Form 8858, discuss the interrelation between Form 8858 and other required international information reporting, and review IRS enforcement practices and actions through their filing checks/matching examination process.
Ms. Rizzo specializes in assisting entrepreneurs and expanding multinational businesses with their international tax planning and tax preparation needs. She regularly advises clients on the tax-efficient structuring of their businesses (whether inbound to or outbound from the U.S.), proper reporting of global income and assets, and tax savings opportunities. She is a certified public accountant with more than fifteen years of professional experience in the accounting and financial services industries, including working in the international tax department of Mazars US.
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.
IRS Form 8858, Information Return of U.S. Persons Concerning Foreign Disregarded Entities, is among the most complex tax reporting forms for U.S. persons engaged in offshore business activities. Due in part to the challenge of determining whether a U.S. person meets ownership requirements, many taxpayers overlook or incorrectly complete this filing, leading to steep taxes and other penalties.
Like other foreign information filings, Form 8858 is required for any taxpayer owning 100 percent interest in any foreign business entity created outside the U.S. which is not treated as a separate entity for U.S. tax purposes. Ownership may be direct, indirect, or constructive based on IRS guidelines.
The treatment of the entity in its home country has no bearing on U.S. reporting obligations; any entity structured similarly to a U.S. single-member LLC will likely require a Form 8858. This includes an entity considered a corporation under local law but has elected under the "check-the-box" rules not to be treated separately from its owner.
Additionally, U.S.-held foreign corporations or partnerships subject to Form 5471 or Form 8865 reporting requirements that own 100 percent of an FDE must also file a Form 8858 for each FDE it holds. Failure to report these FDEs can lead to the Service considering those Forms 5471 or 8865 incomplete, with additional penalties imposed. Tax advisers of U.S. taxpayers owning FDEs must identify the type of ownership and sections of Form 8858 to be reported.
Listen as our experienced panel provides a practical guide to reporting ownership of FDEs on Form 8858.
- Classification of FDEs
- Definition for U.S. tax purposes
- Examples of foreign structures
- Check-the-box elections and impact on Form 8858 filing requirements
- Types of ownership
- Direct
- Indirect
- Constructive
- What's new: latest IRS form revisions
- Critical sections of Form 8858 which lead to IRS scrutiny
- Intersection with Forms 5471 and Form 8865
- Penalties for noncompliance
The panel will discuss these and other vital questions:
- Identifying Form 8858 reporting obligations from Form 5471 and Form 8865 filings
- Recognizing the types of ownership of FDEs and how indirect or constructive ownership impacts which sections of Form 8858 must be completed
- Penalties involved in Form 8858 noncompliance
- Completing the individual sections of Form 8858
Learning Objectives
After completing this course you will be able to:
- Identify Form 8858 reporting obligations
- Recognize the intersection of Form 8858 with Forms 5471 and 8865
- Ascertain the types of ownership of FDEs
- Determine how indirect and constructive ownership impacts which sections of Form 8858 must be completed
- Establish the penalties involved in Form 8858 noncompliance
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.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
