New IRC 864(c)(8) Withholding Rules on Partnership Sales: Calculations and Affidavit of Exemption
Navigating New Partnership Effectively-Connected Income Treatment and Section 1446(f) Remittances
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers and compliance professionals with a critical look at the new withholding rules for sales of interests in U.S. or foreign partnerships earning income effectively connected with a U.S. trade or business. The panel will detail the specific challenges of the new rule, including determination of whether a transferred interest has effectively connected income (ECI), documenting exemptions to withholding requirements, and calculating and remitting withholding payments under new Section 1446(f).
Outline
- Prior treatment of sale of partnership interest
- New provisions of Section 864(c)(8)
- Gain on sale of interest in partnership with ECI to a U.S. trade or business
- Withholding requirements under Section 1446(f)
- Affidavit exception
- Calculating withholding amounts
- Burden on partnership if purchasing partner does not withhold
- Planning implications for partnerships
Benefits
The panel will discuss these and other important issues:
- Identifying instances of de minimis connection to U.S. trade or business activity that would make a partnership disposition subject to withholding under Section 864(c)(8)
- What goes into the calculation of the withholding amount under Sections 864(c)(8) and 1446(f)
- Non-foreign person affidavit to avoid withholding requirement
- Planning considerations to avoid or minimize the impact of 864(c)(8) on partnership transfers
Faculty
Brian J. O'Connor
Partner
Venable
Mr. O'Connor co-chairs the firm's Tax and Wealth Planning Group and provides tax advice to partnerships... | Read More
Mr. O'Connor co-chairs the firm's Tax and Wealth Planning Group and provides tax advice to partnerships and to public and closely held businesses and their owners. Before coming to Venable, he worked as attorney-advisor with the IRS Office of Chief Counsel, assigned to projects and guidance involving partnerships and S corporations.
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Rita M. Ryan
Atty
Vacovec Mayotte & Singer
Ms. Ryan practices in the areas of international and domestic taxation, estate planning, and tax controversy.... | Read More
Ms. Ryan practices in the areas of international and domestic taxation, estate planning, and tax controversy. Prior to joining the firm, she was with PricewaterhouseCooper’s National Tax Services, Exempt Organization Tax Services group. While at PwC, she provided specialized tax consulting and compliance services to non-profit organizations including higher education institutes, foundations, and health care systems. Prior to her tenure at PwC, she served as an Appeals Officer with the Massachusetts Department of Revenue, Office of Appeals, where she heard and issued letters of determination with regard to corporate, individual, and estate tax matters.
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Friedemann Thomma
Partner
Venable
Mr. Thomma is Chair of the Firm's International Tax Practice. He focuses on corporate international tax planning... | Read More
Mr. Thomma is Chair of the Firm's International Tax Practice. He focuses on corporate international tax planning and U.S. taxation of foreign operations. He has managed large-scale global structuring projects, including the design, implementation, and post-implementation phases, for companies in various industries and jurisdictions. He has also served as the primary contact for multinational corporate clients, working closely with in-house tax, legal, treasury, and accounting departments to implement international legal and tax restructuring projects and post-M&A-integration projects.
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