Foreign Tax Credit Limitations Under Section 904: New IRS Regulations and Guidance for Tax Counsel

Allocations, Apportionment, Limitations Under Section 904(b)(4), Impact of GILTI, Carryover and Carryback Rules, Section 960

Recording of a 90-minute premium CLE/CPE webinar with Q&A

Conducted on Tuesday, May 14, 2019

Recorded event now available

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Program Materials

This webinar will guide tax counsel with a critical analysis of new IRS proposed guidance on foreign tax credit (FTC) limitations under Section 904. The panel will discuss key provisions of the new regulations, additional "buckets" of foreign income grouping, new allocation and apportionment rules, limitations under Section 904(b)(4), carryover and carryback rules under Section 904(c), and transition tax implications.

Description

The IRS issued a set of proposed regulations on foreign tax credits (FTCs) outlining the impact of the 2017 tax reform law. The new regulations address the sweeping changes to the existing FTC rules in determining available credits and the application of GILTI in calculating FTCs. These rules are to be applied retroactively to the 2018 tax year, and tax counsel must be aware of the implications to taxpayers.

The most significant changes in the 2017 tax reform law related to the FTC provisions of the Code were modifications to the deemed paid foreign tax provisions under Section 960 and new additional income categories and limitation provisions under Section 904. In addition to guidance under Sections 904 and 960, the new regulations provide a discussion on the apportionment of interest expenses, which modifies existing Section 861 principles.

Tax counsel must recognize the urgency of grasping key concepts and applicability of the FTC rules in light of the new regulations and provisions of the 2017 tax reform law.

Listen as our experienced panel provides a critical first look at the practical implications of the Service's recently proposed FTC regulations.

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Outline

  1. Foreign tax credit rules post-tax reform
  2. Determining and calculating FTC in light of 2017 tax reform law
  3. Section 904 new limitations
  4. New income categories/buckets
  5. Impact of newly proposed regulations on GILTI for FTC purposes
  6. Carryover/carryback rules
  7. Rules for deemed taxes paid under Section 960

Benefits

The panel will discuss these and other key issues:

  • Changes to FTC rules under the 2017 tax reform law
  • Application of new Section 904 limitations and income categories to the current tax year
  • Treatment of GILTI under the IRS proposed FTC regulations in determining exemption of interest and expenses
  • Deemed paid foreign taxes under Section 960
  • FTC carryovers and carrybacks before and after tax reform

Faculty

Barsky, Stanley
Stanley Barsky
Principal
EisnerAmper

Mr. Barsky's practice involves a broad range of transactional and general advisory tax law matters, with a focus on...  |  Read More

Modha, Neel
Neel Modha
Senior Manager
Holthouse Carlin & Van Trigt

Mr. Modha's practice focuses on international tax, specializing in international tax consulting and compliance...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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