Tax Reform and U.S. Foreign Reporting for Individuals: New Cross-Border Repatriation and Inclusion Provisions

Navigating Participation Exemption System, GILTI Inclusions, Intangible and Passive Income Treatment

Note: CLE credit is not offered on this program

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

Conducted on Thursday, January 31, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax advisers and compliance professionals with a practical guide to the impact of the Tax Cuts and Jobs Act on U.S taxpayers with foreign income and tax reporting obligations. The panel will examine the significant changes the law imposes on calculating and reporting taxable foreign-source income and will discuss regulatory guidance issued by the Service during 2018.


The 2017 tax overhaul act represented the most sweeping set of changes to the U.S. income tax code in over 30 years. In particular, the law sets a new framework for the treatment of foreign-sourced income received by U.S taxpayers. While the focus of the new international regime is on corporations, the law contains numerous provisions which will have a dramatic impact on U.S. individuals engaged in foreign business activities through foreign corporations.

The law adopts a territorial tax regime system for corporations but puts several mechanisms in place to end prior deferral benefits for U.S. shareholders of foreign business entities. The tax reform law offers reduced rates on repatriation of income but also significantly expands the base of transnational, cross-border income that will be subject to current U.S. taxation. The provisions are applicable immediately, with some limited transition relief.

The law applies to "U.S. shareholders" of "specified foreign corporations" (SFCs), which includes all foreign entities qualifying as CFCs. For purposes of the new foreign tax regime, U.S. shareholder consists of any U.S. domestic corporation, partnership, trust, estate or individual that directly, indirectly or constructively owns 10% or more of an SFC's value or voting power.

Because the new regime still has some areas of uncertainty, tax advisers serving individual and small business clients with foreign-source income must avoid costly tax consequences by becoming proficient in the new concepts.

Listen as our experienced panel provides a critical first look at the cross-border implications of the tax reform law.



  1. New cross-border provisions and definitions in 2017 tax overhaul bill
  2. U.S. shareholders subject to new foreign provisions
  3. The territorial regime for foreign-sourced qualified dividends
    1. Inclusion in 2017 income of pro rata share of accumulated deferred foreign income of corporation
    2. Participation exemption system
    3. GILTI and inclusion of passive foreign income
  4. Treatment of foreign intangibles


The panel will discuss these and other relevant topics:

  • How the definitions of U.S. shareholders subject to tax on previously deferred foreign-source income have changed under the new law
  • Critical income inclusion and repatriation provisions effective in 2018
  • Treatment of foreign passive and intangible income under the new rules
  • GILTI and application of Subpart F


Grinberg, Ora
Ora Grinberg

Fenwick & West

Ms. Grinberg focuses her practice on U.S. corporate and international taxation. She represents clients in tax planning...  |  Read More

McCormick, Patrick
Patrick J. McCormick, J.D., LL.M.

Drucker & Scaccetti

Mr. McCormick specializes in the areas of international taxation, tax compliance, and offshore reporting...  |  Read More

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