Taxation of Foreign Pensions: Application of IRC 402(b) and Avoiding Penalties for Noncompliance
Tax Rules Governing Foreign Pension Accounts, Foreign vs. U.S. Qualified Plans, Use of Tax Treaties, IRS Examinations
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
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.
Outline
- Information reporting and classification of foreign pensions, annuities, and social security
- Differentiation between foreign plans and "U.S. qualified plans"
- Section 402(b) provisions and treatment
- Grantor trust treatment
- Tax treaty applicability
- 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
Faculty
Robert V. Hanson, Esq.
Tax Manager
Moore Doeren Mayhew
Mr. Hanson’s practice focuses on individuals and organizations with offshore assets and international tax... | Read More
Mr. Hanson’s practice focuses on individuals and organizations with offshore assets and international tax exposure. He represents clients during examinations, administrative appeals of FBAR and international information reporting form penalties, and offshore voluntary disclosures, as well as providing advice to taxpayers with foreign businesses regarding possible U.S. tax exposure. Prior to joining the firm, Mr. Hanson worked with low income taxpayers at the University of Connecticut School of Law.
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James P. Klein
Senior Counsel
Pillsbury Winthrop Shaw Pittman
Mr. Klein focuses his practice in the areas of executive compensation and benefits, and tax. He has broad experience... | Read More
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.
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James (Jim) Cassidy, CPA
International Advisor
Schulman Lobel
Mr. Cassidy is a Certified Public Accountant (New York) with more than 30 years of experience providing U.S. and... | Read More
Mr. Cassidy is a Certified Public Accountant (New York) with more than 30 years of experience providing U.S. and international individual tax consulting and compliance services to international assignee executives, high net-worth individuals, investors as well as athletes & entertainers. He gained most of his experience working for some of the largest accounting public accounting firms, such as PwC, and recently with BDO as the U.S. National Tax Technical Leader for expatriate tax services. He spent several years living in Mexico City and Toronto, assisting clients with local and U.S. tax advice.
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