Section 959 PTEP Categories and Ordering Rules for Controlled Foreign Corporation Distributions
Notice 2019-1 New PTEP Groupings, Intersection of Section 959, 904 and 1248, Treatment of PTEP in Excess of Current E&P
Recording of a 110-minute CPE webinar with Q&A
This course will provide U.S. shareholders of controlled foreign corporations (CFCs) and their tax advisers with an overview of the previously taxed earnings and profits (PTEP) proposed guidance from Notice 2019-01. The panel will discuss the latest IRS guidance on ordering rules, detail the PTEP groups, and detail the federal tax implications to distributions of PTEP.
Outline
- Summary of previously taxed income rules before Notice 2019-01
- Elements of Section 959
- Section 959(a) exclusion from gross income of U.S. persons
- Section 959(b) exclusion from gross income of certain foreign subsidiaries
- Section 959(c) allocation of distributions
- Groups of PTEP from Notice 2019-01 requiring a separate annual accounting
- Ordering rules for distributions to U.S. shareholders from CFCs
Benefits
The panel will discuss these and other relevant issues:
- New PTEP groups discussed in Notice 2019-1
- Rules for separate accounting of each PTEP group
- Federal tax implications when PTEP distributions exceed current year E&P
Faculty
Sean Dokko, J.D., LL.M.
Managing Director, National Tax Office - International Tax Services
BDO USA
Mr. Dokko focuses on international tax planning and consulting for both inbound and outbound clients. He has experience... | Read More
Mr. Dokko focuses on international tax planning and consulting for both inbound and outbound clients. He has experience in structuring and implementing tax efficient foreign holding company structures, IP migrations, cross border restructurings, foreign tax credit planning, implementing strategies to minimize subpart F income, and analyzing income tax treaties. In addition, Mr. Dokko is responsible for analyzing and addressing technical issues related to the various international tax provisions that were included as part of the Tax Cuts and Jobs Act such as the Section 965 transition tax, global intangible low-taxed income and the associated Section 250 deduction, the Section 250 deduction for foreign derived intangible income, and the base erosion and anti-abuse tax. As part of the National Tax Office, he is responsible for assisting the firm’s offices with analyzing complex international tax issues and reviewing international tax technical advice provided to the firm’s clients.
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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
Ms. Dougherty specializes in U.S. international tax reporting, compliance, consulting, planning, and structuring as a significant contributor to the firm’s international tax practice. She has extensive experience assisting clients with U.S. tax reporting and compliance for offshore assets and foreign accounts. Ms. Dougherty provides outbound U.S. international tax guidance to U.S. individuals and businesses with activities in other countries. She also provides inbound U.S. international tax guidance to nonresident individuals and businesses with activities in the U.S. Ms. Dougherty has counseled U.S. taxpayers regarding the outbound formation, capitalization, acquisition, operation, reorganization, and liquidation of foreign companies. She has significant experience with U.S. federal nonresident tax withholding, foreign partner tax withholding, and FIRPTA withholding. She works closely with nonresident individuals and businesses regarding inbound U.S. real property investment. Additionally, Ms. Dougherty has assisted U.S. taxpayers with IRS amnesty program disclosures of offshore assets and foreign accounts.
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