IRC 7701 Check-the-Box Elections for Foreign Pass-Through Entities: Structuring Hybrid Entities for Tax Arbitrage
Lowering U.S. Income Tax on Income From Eligible Foreign Entities by Electing Tax-Advantaged Treatment
Recording of a 90-minute premium CLE/CPE webinar with Q&A
This webinar will provide tax advisers with guidance on the advantages and pitfalls of using the “check the box” election for foreign LLCs and disregarded entities. The panel will discuss the tax impact of specific elections of income from foreign disregarded entities, outlining tax timing and treatment, both deferred and on repatriation.
Outline
- Purpose of “check-the-box” entity election
- Eligible entities
- Relevance determination for foreign entities
- Hybrid entities and tax planning opportunities
- Income transfer opportunities out of Subpart F
- Making retroactive entity selection or reevaluation
Benefits
The panel will discuss these and other important issues:
- How check-the-box elections facilitate the creation of “hybrid” entities
- Utilizing check-the-box elections to structure transactions to pull foreign-source income out of Subpart F treatment
- Retroactive entity selection and completing Form 8832
- How to determine whether a foreign entity is “relevant” for U.S. taxation purposes
Faculty

Cindy L Grossman
Partner
Giordani Baker Grossman & Ripp
Ms. Grossman’s practice encompasses a wide variety of corporate and partnership transactions with international,... | Read More
Ms. Grossman’s practice encompasses a wide variety of corporate and partnership transactions with international, federal, and state tax implications, including stock and asset acquisitions, partnership freeze transactions, planning, structuring, and implementation of mergers, real estate transactions, and other recurring and non-recurring business transactions.She has a breadth of experience in corporate and partnership formation and operation, entity conversion and reorganization, business planning, business succession planning, and asset protection planning. She represents business clients at all stages of their ventures and assists clients with proper planning and structuring of cross-border transactions, as well as with strategic offshore placement of business assets for asset protection and tax planning purposes.
ClosePatrick J. McCormick, J.D., LL.M.
Kulzer & DiPadova
Mr. McCormick specializes in the areas of international taxation, tax compliance, and offshore reporting... | Read More
Mr. McCormick specializes in the areas of international taxation, tax compliance, and offshore reporting obligations. He published national articles and given numerous national and local presentations on assorted areas of tax and estate planning law, including international tax and offshore compliance issues. His latest article on PFICs is titled Tax Reporting Implications of Foreign Mutual Funds. He is licensed to practice in the States of New Jersey, Florida, and Georgia, and the Commonwealth of Pennsylvania.
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