IRC 962 Election for Corporate Tax Rate on Subpart F Income
Avoiding GILTI Complexities, Claiming Indirect Deemed Paid Foreign Tax Credits, and NOL Carrybacks
Note: CLE credit is not offered on this program
A live 110-minute CPE webinar with interactive Q&A
This course will guide tax advisers in making a Section 962 election for an individual, trust, or estate to be taxed at corporate rates on foreign-sourced income under Section 951(a) and global intangible low-taxed income (GILTI) treated in the "same manner" as Subpart F inclusions. The panel will show how to identify income eligible for a 962 election, detail the potential tax benefits (including indirect foreign tax credits), discuss potential hazards to making the election, and discuss the interplay of this election with the expansion of NOL benefits under the CARES Act.
- GILTI regime and expansion of deemed inclusions of foreign earnings
- Section 962 election
- Eligible income under IRC 951(a) and 951A(f)
- Claiming IRC 960 indirect/deemed paid foreign tax credits
- The tax rate on elected foreign income inclusion
- Treatment of distributions where amounts previously included in gross income at the time of the election
- Areas of uncertainty
- GILTI deduction eligibility
- Qualified distribution treatment
- Where a Section 962 election may create higher tax after a deferral
- Impact of Section 962 elections on trusts and estates
- Who may make the Section 962 election?
- Impact of compressed fiduciary tables on effective tax rates
- Considerations for NOL relief provided by the CARES Act
- Making the election
- Calculating and reporting the tax
- The effect of impending legislation
- Subsequent years
The panel will discuss these and other important issues:
- What types of income are eligible for corporate tax rates under a Section 962 election?
- How to calculate the tax impact of subsequent distributions of amounts included in gross income under Section 962 election
- Determining when a Section 962 election could result in tax increases
- When do recently enacted NOL benefits outweigh the benefit of making this election?
Seth M. Buchwald
Alston & Bird
Mr. Buchwald is a senior associate in the Federal & International Tax Group. He uses his experience as a former... | Read More
Mr. Buchwald is a senior associate in the Federal & International Tax Group. He uses his experience as a former certified public accountant (CPA) to understand and assist U.S. and multinational clients on planning and compliance with domestic and international tax issues, including M&A, civil and criminal tax controversy, and international corporate restructurings. Mr. Buchwald also has extensive experience advising insurance companies and managing agents in coverage for specified tax risks in M&A and other transactions, such as those involving renewable energy tax credits. He has worked extensively with various provisions of the Coronavirus Aid, Relief, and Economic Security Act and the Tax Cuts and Jobs Act, including Employee Retention Tax Credits, the Section 965 transition tax, global intangible low-taxed income (GILTI), and Section 962 elections.Close
Eisner Advisory Group
Mr. O’Beirne is a Tax Partner and leader of the firm’s International Tax Group, with more than 25 years of... | Read More
Mr. O’Beirne is a Tax Partner and leader of the firm’s International Tax Group, with more than 25 years of experience. He has extensive experience with both inbound and outbound structuring, including mergers and acquisitions. Mr. O’Beirne works with private equity firms and their portfolio companies which allows him to be involved with the many different commercial ventures. He also works with expatriates on their financial management and tax issues, including pre-departure and subsequent return tax planning and tax compliance.Close
Holthouse Carlin & Van Trigt
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on... | Read More
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on individuals, closely-held businesses, and hedge funds. He has particular expertise in structuring and reporting foreign manufacturing arrangements and foreign holding companies, and is experienced in foreign asset disclosure requirements, as well as foreign trust and estate reporting.Close
Early Discount (through 02/04/22)
CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.