Form 926 Compliance: Domestic Corporate Transfers to Foreign Subsidiaries and Related Corporations

Navigating IRC 6038 Corporate Rules for Transactions Involving Reorganization, Liquidation or Contribution Transfers

A live 110-minute CPE webinar with interactive Q&A

Thursday, September 7, 2017
1:00pm-2:50pm EDT, 10:00am-11:50am PDT

This webinar will provide corporate tax professionals with a comprehensive guide to complying with reporting obligations for contributions of cash or other property to foreign corporations. The panel will identify the types of transactions that trigger reporting obligations, discuss filing thresholds and information required to be reported on Form 926. The webinar will also cover the relationship and cross-referencing between Form 926 and other required foreign information filings, and detail the penalty regime for failure to report contributions to foreign corporations.


Section 6038 requires U.S. persons, corporations and partnerships to file an information report to the IRS when making certain transfers of property to non-U.S. corporations in certain “non-recognition” transactions, as specified in Section 367.

While the Code Section and regulatory guidance is intended to prevent taxpayers from avoiding tax by shifting appreciated property to foreign jurisdictions, the reporting requirements apply whether or not the transferred asset has appreciated in value.

There are a number of transactions specific to domestic corporations that fall under the Form 926 reporting requirements. Transfers arising from liquidations (governed by Sections 332 and 336), reorganizations (under Sections 354 and 361), and distributions of controlled corporation stock (Section 355) fall under the Section 6038 filing duties and can trigger recognition as taxable events.

The information required on Form 926 is extensive and the penalties for noncompliance are harsh, up to 10% of the market value of the asset transferred. Additionally, the IRS is utilizing Form 926 to verify consistency with other foreign reporting requirements, so a failure to file a complete and accurate Form 926 can result in other tax consequences—such as FATCA and transfer pricing penalties—as the IRS cross-checks information, as well as extending the statute of limitation until the reporting is complete.

Listen as our experienced panel provides a thorough and practical guide to completing Form 926 to report property contributions to foreign corporations.


  1. Transactions requiring Form 926 reporting
  2. What must be reported on Form 926
  3. Special issues related to partnerships and hedge funds
  4. Penalties for noncompliance


The panel will discuss these and other important issues:

  • What are the thresholds for Form 926 reporting?
  • What are the Form 926 reporting requirements when a U.S. domestic corporation transfers property to a controlled or related foreign corporation?
  • What are the special rules applicable to corporations under the terms of Section 367?
  • What is a “gain recognition agreement” and how does it impact reporting requirements?
  • What are the challenges of completing Part III, Information Regarding Transfer of Property, and how does Part III intersect with Form 5471 and FinCEN Form 114?
  • What are the calculations required to complete Part IV, Additional Information Regarding Transfer of Property?

Learning Objectives

After completing this course, you will be able to:

  • Recognize the thresholds for both value and control in determining whether a taxpayer must file Form 926
  • Discern the exceptions to filing requirements and gain/loss recognition on transfers to foreign corporations
  • Identify critical calculations that must be reported in Part IV of Form 926
  • Demonstrate the interrelation between amounts reported on Form 926 and other foreign information reporting requirements such as FBAR/FinCEN Form 114
  • Determine information that must be included in Part III of Form 926


Alison N. Dougherty, J.D., LL.M., Director
Aronson, Rockville, Md.

Ms. Dougherty has extensive experience assisting clients with U.S. tax reporting and compliance for offshore assets and foreign accounts. She specializes in international tax compliance, planning and structuring as a subject matter leader of her firm's international tax practice. Her responsibilities include U.S. Federal and multi-state tax compliance for C corporations, S corporations, partnerships and individuals. She also provides transactional tax planning and structuring services.

John Garcia, CPA
Corporate Tax Advisors, Foothill Ranch, Calif.

Mr. Garcia specializes in providing accounting, tax, and training services for mid-sized corporations with an international footprint. Prior to starting his firm, he served as the head of tax for various large global consumer products companies for over a decade. In these roles he was responsible for all income tax planning, financial reporting, compliance and audits. He has a wealth of experience including settling multiple full scope international IRS audits and appeals, competent authority proceedings, and various international restructurings of organizations.

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Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.

This program is eligible for 2.0 CPE credits.

  • 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 verification codes announced throughout the presentation.
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, supervising other attorneys or accountants. Specific knowledge and understanding of foreign asset and contribution information reporting requirements; familiarity with IRS standards for foreign tax reporting, familiarity with FATCA and related reporting penalties.

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


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Corporate Tax Advisory Board

David Adler

Director of Multistate Tax Services

Deloitte Tax

Silvia Aguirre

Chief Certificate Officer


David Bowen


Grant Thornton

Elizabeth Bowman

Tax Research Analyst

ADP Tax Credit Services

Rick Bregitzer

Manager of Domestic Taxes


Joseph Calianno

Partner, National Tax Office International Tax


Patrick Derdenger

Tax Partner

Steptoe & Johnson

Martin Eisenstein

Managing Partner

Brann & Isaacson

John Garippa

Senior Partner

Garippa Lotz & Giannuario

Joseph Geiger, Esq., CPA

Tax Consultant


Kenneth Graeber

VP & Management Consultant

Marvin F. Poer & Co.

Don Griswold

Executive Tax Counsel

Berkshire Hathaway Tax Group

Stephanie Anne Lipinski-Galland


Williams Mullen

George Manousos



Diane Matulich

Senior Manager, Local Taxes

Advanced Micro Devices

Betty McIntosh

Senior Managing Director

Cushman & Wakefield

Foy Mitchell

Vice President

Marvin F. Poer & Co.

Richard Pomp

Professor of Tax Law

University of Connecticut

Walter Pickhardt


Faegre Baker Daniels

Richard J. Prem

Vice President, Indirect Taxes & Tax Reporting

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Scout Economics

Tammy Propst



Mark Semerad

Manager of Property Tax

Level 3 Communications

Richard Weiss

Tax Research Manager

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Managing Director & National Leader, Federal Tax Credits & Incentives

RSM McGladrey

Thomas Zaino

Managing Member

Zaino Hall & Farrin

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