Subpart F Expansion Final and Proposed Regulations: Increased Tax Liability and Reporting Obligations
Controlled Foreign Corporation and U.S. Shareholder Definitions, GILTI
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers with a practical overview of the significant to Subpart F tax treatment of controlled foreign corporations (CFCs). The panel will detail in plain language the specific areas of Subpart F, including the downward attribution rules, recent final and proposed regulations, and foreign information reporting requirements on Form 5471.
Outline
- Impact of U.S. International Tax Reform: An Overview
- Subpart F’s CFC Rules: Expansion & Contraction of § 951(a)’s Application
- Six ways Subpart F’s purview was expanded by the 2017 TCJA
- Strategies to mitigate effects of § 318’s downward attribution rules due to Congress’ repeal of § 958(b)(4)
- Rev. Procedure 2019-40’s three safe harbors; Reporting examples
- Entity selection and check-the-box considerations
- Final January 2022 Regulations limiting Subpart F income; Examples
- US partnerships as US shareholders
- Proposed regulations offering mark-to-market QEF elections
- Global Intangible Low Taxed Income – Code § 951A
- Overview and recent final GILTI regulations
- Mechanics and computation
- Tax planning strategies
- Reporting considerations
- Examples
- Tax Planning Strategies and Pitfalls
- The § 962 election: determining whether making the election is optimal, mechanics, reporting
- The High-Tax Subpart F and GILTI Opt-out Elections
- Longstanding Subpart F High-Tax Exception of § 954(b)(4)
- GILTI High-Foreign Tax Exclusion (Final 2020 Regs).
- The 2020 Proposed “Unitary” High-Tax Annual Exclusion Election
- Practical tax planning opportunities given recent IRS administrative guidance
- Tax traps to avoid
- Key Takeaways and Q&A
Benefits
The panel will discuss these and other important topics:
- How the proposed and final regulations affect Subpart F income
- Constructive ownership tests in CFCs, including downward attribution rules
- How the Subpart F changes run counter to the tax law's general aim to convert to more territorial taxation of U.S. taxpayers as opposed to global-based
- Treatment of earnings invested in U.S. property
Faculty
Pamela A. Fuller, Esq., J.D., LL.M. (Taxation)
Senior Counsel (Tax, M&A, International)
Tully Rinckey PLLC and Zahn Law Group
Ms. Fuller is a corporate and international tax attorney with over 20 years experience in advising a wide range of... | Read More
Ms. Fuller is a corporate and international tax attorney with over 20 years experience in advising a wide range of clients -- including private clients and companies, joint ventures, private equity funds, HNW indviduals, C-Suite executives, "start-ups," and government entities -- on transactional, investment, and supply-chain strategies to achieve optimal tax and business results. She has deep expertise in structuring cross-border M&A transactions, and advising mobile international families. Her clients hail from a multitude of industries, including the burgeoning world of decentralized finance (DeFi). Pamela is also a seasoned taxpayer advocate, with decades of experience resolving complex U.S. federal, state, and foreign tax controversies.
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John Samtoy
Tax Partner
Holthouse Carlin & Van Trigt
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on... | Read More
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on individuals, closely-held businesses, and hedge funds. He has particular expertise in structuring and reporting foreign manufacturing arrangements and foreign holding companies, and is experienced in foreign asset disclosure requirements, as well as foreign trust and estate reporting.
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