International Business: Federal Tax Planning Update

Outline

1. Relevant U.S. legislative changes
   1. Education Jobs and Medicaid Assistance Act of 2010, H.R. 1586
      1. International tax extenders shifted from separate tax extender bill onto this legislation
      2. Prohibition against foreign tax credit-splitting
      3. Denial of foreign tax credits for disqualified portion of foreign tax paid on covered asset acquisition
      4. Repeal of 80/20 rules for interest paid and U.S. withholding
      5. Other aspects
   2. HIRE Act, H.R. 2847
      1. New international tax reporting requirements
      2. Withholding on income from U.S. financial assets held by foreign financial institutions
   3. Possible upcoming legislation
      1. After recess, Congress was to consider look-through treatment of payments between related CFCs
2. Ongoing compliance challenges
   1. FBAR issues and new FATCA 6038D form
   2. Other new federal forms
   3. Estate and gift tax issues
      1. Estate tax suspended in 2010, scheduled to return in 2011 with lower exemption
      2. Effects on international structures
   4. IRS audit treatment of international structures
      1. Adding many more examiners
3. Adjustments to international tax planning to consider, in light of these and other developments

Benefits

The panel will analyze these and other important developments:

• New federal laws: International tax implications of the Education Jobs and Medicaid Assistance Act and Restore Employment (HIRE) Act.
• FBAR: Latest actions affecting compliance with Form TD F 90.22-1 and the new FATCA Sect. 6038D information return.
• Estate and gift taxes: 2010 tax suspensions followed by the return in 2011, and what that means for international business dealings and tax.
• Audit: Whether the beefing up of IRS international exam efforts will affect you.