Leveraging Outbound Transfers of Corporate Stock and Other Property

Navigating Sect. 367 Gain Recognition Agreements and Sect. 6038B Regs in Cross-Border Transactions

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


Conducted on Wednesday, March 4, 2015

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE/CPE webinar will provide guidance to counsel on the use of outbound transfers and the recently issued IRS rules impacting those transfers. The panel will discuss gain recognition agreement requirements and the reporting rules and offer best practices for leveraging outbound transfers.

Description

In November 2014, the U.S. Internal Revenue Service (IRS) issued final regulations revising the reporting rules applicable to stock and property transfers under Internal Revenue Code §§367 and 6038B. The final regulations clarify the rules that apply for transfers of property to foreign corporations (outbound transfers).

U.S. or foreign persons use outbound transfers as a way to minimize or avoid U.S. tax on the profits from the sale. Under the final regs, the full amount of gain on an outbound transfer must be recognized only if a failure to comply with §367 reporting obligations was willful.

However, the final rules are not all a win for taxpayers. The final regs do away with a 2010 directive allowing for corrections in documents related to gain recognition agreement (GRA) filings. Further, §6038B now calls for specifics on FMV, basis and gain recognized when filing a GRA. Counsel and clients must carefully consider how outbound transfers should be utilized.

Listen as our authoritative panel discusses outbound transfers, IRC §367(a) and its gain recognition agreement requirements. The panel will also discuss the IRS final rules and reporting rules under Section 6038B, considerations for avoiding GRAs, and the final regulations.

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Outline

  1. Transactions that fall under IRC §367
  2. IRS final rules (Nov. 2014)
  3. Considerations for avoiding GRAs
  4. Best practices for leveraging outbound transfers and minimizing taxes

Benefits

The panel will review these and other key issues:

  • When should a company file a GRA as part of an outbound transfer? When should they avoid filing a GRA?
  • How do the final regulations impact outbound transfers and GRAs?
  • What are the reporting requirements for outbound transfers? How did the final regulations change these requirements?

Faculty

Jon Van Loo
Jon Van Loo

Atty
Dechert

Mr. Van Loo focuses his practice on international and domestic tax aspects of distressed debt restructuring and...  |  Read More

Rich Williams
Rich Williams

Atty
Dentons

Mr. Williams has experience in a wide range of federal income tax matters, including domestic and international...  |  Read More

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