IRS CCA 201501013: Navigating New & Heightened Scrutiny of Foreign Investment Fund Lending Income

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


Conducted on Tuesday, March 17, 2015

Recorded event now available

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Program Materials

This CLE/CPE webinar will provide tax counsel and advisors with the guidance necessary to survive IRS scrutiny in the context of foreign investment fund lending. The panel will cover in detail the application of the trade or business designation to foreign investment fund lending as well as effective use of safe harbors. Additionally, attendees will benefit from a discussion on reporting and loan origination rules.

Description

In a Chief Counsel Advice issued on January 5, 2015, the IRS addressed tax issues with foreign investment fund lending. One of the most important aspects of this CCA is that field agents are encouraged to beef up oversight of these transactions. As such, counsel must be well-equipped to advise clients on how to correctly engage in fund lending.

The issue that must be at the forefront is the ubiquitous designation of trade or business. Inaccurate consideration of this concept could result in negative tax consequences for foreign investment fund clients. Counsel must be aware of the red flags that will result in a fund’s actions being considered a trade or business.

Of additional and equal importance is the maximization of available safe harbors. Effective use of the safe harbors could result in avoiding the trade or business determination. The CCA further analyzed the use of the safe harbors as well.

Listen as our experienced panel review the clarifications provided by the recent CCA. Panelists will cover in detail the application of the trade or business designation to foreign investment fund lending as well as effective use of safe harbors. Additionally, attendees will benefit from a discussion on reporting and loan origination rules.

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Outline

  1. Context of CCA 201501013
  2. Trade or business designation
  3. Safe harbor rules
  4. Loan origination
  5. Reporting rules
  6. Surviving expanded audits

Benefits

The panel will answer the following questions:

  • What considerations must be made when structuring foreign investment fund loans to avoid the trade or business designation?
  • What are the best practices to maximize the benefits of available safe harbors?
  • What techniques should be implemented when preparing for expanded tax audits within the context of foreign investment fund loans?

Faculty

Peter A. Glicklich
Peter A. Glicklich

Partner
Davies Ward Phillips & Vineberg

Mr. Glicklich concentrates his practice in the taxation of corporate and international transactions. He advises...  |  Read More

Susan F. Klein
Susan F. Klein

Partner
Akerman

Ms. Klein focuses her practice on tax matters relating to private international transactions and has extensive...  |  Read More

Leonard Schneidman
Leonard Schneidman

Managing Director
Andersen Tax

Mr. Schneidman has over 40 years of experience in international taxation. His work includes counseling clients on...  |  Read More

Other Formats
— Anytime, Anywhere

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:

CLE On-Demand Video

$297

Download

CPE Not Available

$297