Preparing Forms 8992 and 8993 for GILTI and FDII: Recent Updates, Tested Income, QBAI, and Related Schedules

Recording of a 110-minute CPE webinar with Q&A


Conducted on Thursday, June 17, 2021

Recorded event now available

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Program Materials

This webinar will guide international tax professionals through preparing and calculating amounts for reporting on Forms 8992 and 8993 for GILTI (Global Intangible Low-Taxed Income) and FDII (Foreign Derived Intangible Income). Our veteran foreign practitioners will discuss the concepts behind the numbers, recent changes to these forms, and caveats to avoid in preparing these complicated forms and their related schedules.

Description

A U.S. shareholder with an ownership interest in a CFC must calculate and report GILTI using Form 8992, U.S. Shareholder Calculation of GILTI. GILTI is calculated based on tested income and qualified business assets investment (QBAI). Corporations, or individuals making a Section 962 election, must file Form 8993, Section 250 Deduction for FDII, to calculate the FDII and GILTI deductions available.

Like other foreign information returns, failure to file Form 8992 or provide complete information can result in a $10,000 penalty. Once contacted by the IRS, the penalty can run as high as $50,000 a month until resolved, Treasury Reg. Section 1.6038-5.

These forms continue to be updated. Form 8993 was recently revised for proposed and final Section 250 regulations, and Form 8992 has a new Schedule B to accommodate consolidated group filings. International tax practitioners need to understand how to calculate and report tested income, QBAI, and the Section 250 deductions for U.S. shareholders in CFCs.

Listen as our panel of international tax experts reviews the components of GILTI and FDII and walks you through preparing Forms 8992 and 8993 to properly report these complex calculations.

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Outline

  1. GILTI and FDII: introduction
  2. Form 8992
    1. Filing requirements
    2. Recent changes
    3. Preparing the form
  3. Form 8993
    1. Filing requirements
    2. Recent changes
    3. Preparing the form

Benefits

The panel will review these and other critical issues:

  • What is the purpose of the new Schedule B added to Form 8992?
  • How is Schedule A prepared to report GILTI on Form 8992?
  • When should an amended return and Form 8993 be filed for taxpayers making a Section 962 election?
  • What are the most recent changes to Forms 8992 and 8993?

Faculty

Doub, James
James Doub, CPA, MST

Global Tax Services Manager
Crowe

Mr. Doub provides extensive assistance and guidance in many global structure optimization and implementation projects...  |  Read More

Dougherty, Alison
Alison N. Dougherty, J.D., LL.M., CPA

Partner
Aronson

Ms. Dougherty specializes in U.S. international tax reporting, compliance, consulting, planning, and structuring as a...  |  Read More

Mytko, Sergei
Sergei Mytko, J.D.

Global Tax Services Partner
Crowe

Mr. Mytko specializes in international tax compliance, international tax planning, and cross-border M&A. He has...  |  Read More

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