Mastering Subpart F Tax Compliance: Key Reporting Requirements on Forms 5471 and 1118

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

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Wednesday, February 16, 2022

1:00pm-2:30pm EST, 10:00am-11:30am PST

or call 1-800-926-7926

This CLE/CPE course will provide tax professionals with an in-depth discussion of the challenges of reporting Subpart F income. The panel will discuss the proper methods of determining the Subpart F income earned by U.S. persons that qualify as U.S. shareholders of controlled foreign corporations (CFCs) and how to report such Subpart F income. The panel will assist tax pros in navigating Forms 5471 and 1118 and discuss tax planning techniques to minimize tax liability and penalties.

Description

The Subpart F rules require U.S. shareholders of CFCs to treat certain types of foreign corporate income as taxable in the current year. The Subpart F rules increase the number of foreign corporations treated as CFCs and catch many more U.S. persons in the Subpart F net. Tax professionals must recognize the resulting U.S. foreign tax information reporting challenges for U.S. persons owning foreign corporations. Advisers need to expand their Subpart F expertise to navigate the two most relevant Subpart F reporting platforms: Form 5471 and Form 1118.

The panel will also compare Subpart F with the GILTI anti-deferral regime. Due to the GILTI anti-deferral regime, a U.S. shareholder of a CFC may even wish to trigger Subpart F income to get out of the GILTI rules because Subpart F income is subject to less stringent U.S. foreign tax credit strictures than GILTI.

Listen as our panel discusses Subpart F rules and provides a practical guide to determining CFC ownership, Subpart F income, and reporting obligations for U.S. shareholders of CFCs with Subpart F income.

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Outline

  1. Basic components of the Subpart F anti-deferral regime
  2. Determining Subpart F income
  3. Reporting Subpart F income on Form 5471
  4. Claiming the foreign tax credit for Subpart F income on Form 1118
  5. Best practices for ensuring accurate reporting of Subpart F income

Benefits

The panel will review these and other key issues:

  • What are the tax compliance challenges for U.S. persons owning CFCs?
  • How has the application of Subpart F expanded post TCJA?
  • What are the challenges in determining and calculating Subpart F income?
  • What are the main issues and pitfalls to avoid in preparing Forms 5471 and 1118?

Faculty

Ting, Khiem
Khiem Ting

Senior Manager / Director
KPMG

Mr. Ting provides US international tax services to a broad range of clients including US and foreign multinational...  |  Read More

Rhee, Stephen
Stephen Rhee

Senior Associate
KPMG

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 |  Read More
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You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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