Passive Foreign Investment Company Tax Regulations
Navigating Complex Tax Features of Foreign Investments Absent Clear IRS Guidance
Recording of a 110-minute CPE/CLE webinar with Q&A
This CLE course will update tax executives dealing with passive foreign investment companies on the material terms of applicable IRS regulations and guidance, how to deal with ambiguous areas of the regulations, and to navigate common tax planning and compliance challenges with PFICs.
Outline
- Determination of a passive foreign investment company (PFIC)
- What is a PFIC?
- Income test
- Asset test
- Start-up companies
- Companies with a substantial temporary increase in liquidity:
- Holding companies with substantial minority investments:
- Tax treatment of PFIC income
- Gain from the sale of shares
- Dividends deemed excess distributions
- Interest charge
- Qualified electing fund (QEF)
- Tax planning strategies
- Qualified electing fund (QEF)
- Mark-to-market election for publicly traded companies
- Importance of recordkeeping by PFICs and shareholders
- Enforcement trends
Benefits
The panel will review these and other key questions:
- What are the tax consequences of PFIC status?
- What are the benefits and disadvantages of having a PFIC investment qualified as a qualified electing fund (QEF)?
- What recordkeeping is critical for PFICs and their shareholders?
- When is an operating company in danger of being deemed a PFIC?
Faculty
Michael J. Miller
Partner
Roberts & Holland
Mr. Miller has provided U.S. tax advice to domestic and international clients for more than 15 years. Working with... | Read More
Mr. Miller has provided U.S. tax advice to domestic and international clients for more than 15 years. Working with foreign clients, he has structured inbound U.S. investments and operations to avoid creation of U.S. permanent establishment and developed structures to take advantage of U.S. income tax treaties, the withholding tax exemption for portfolio interest, and other rules for minimizing U.S. tax. He is an editor of the International column for the Journal of Taxation and is currently Chair of the Business Entities Committee of the New York City Bar and Chair-Elect of the U.S. Activities of Foreign Taxpayers Committee of the American Bar Association Tax Section.
CloseCarol P. Tello
Partner, Tax Practice Group
Sutherland Asbill & Brennan
Her practice focuses on cross-border tax planning and IRS controversies for both business and individual clients. She... | Read More
Her practice focuses on cross-border tax planning and IRS controversies for both business and individual clients. She previously worked with the IRS Office of Associate Chief Counsel and she chairs the American Bar Association's Controlled Foreign Corporations and PFICs Subcommittee.
CloseJ. Richard Duke
Principal
Duke Law Firm
His law firm specializes in international practice, and he is an adjunct professor of international tax and financial... | Read More
His law firm specializes in international practice, and he is an adjunct professor of international tax and financial services law at the Thomas Jefferson School of Law. He has authored numerous legal books, journals and articles; and has been named to Worth magazine's list of top 100 U.S. attorneys several times.
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