Taxation of Foreign Pensions: Application of IRC 402(b) and Avoiding Penalties for Noncompliance
Tax Rules Governing Foreign Pension Accounts, Foreign vs. U.S. Qualified Plans, Use of Tax Treaties, IRS Examinations
Recording of a 90-minute premium CLE/CPE webinar with Q&A
This CLE/CPE webinar will provide tax counsel and ERISA attorneys a detailed analysis of the tax rules governing foreign pension accounts, with a specific focus on avoiding penalties for noncompliance. The webinar will go beyond the basics to offer useful practice pointers on the application of IRC 402(b) to foreign pensions and annuities, the difference between foreign and U.S. qualified plans, the IRS approaches to foreign pensions during examinations, and tips to prevent potentially costly tax penalties and sanctions.
Outline
- Information reporting and classification of foreign pensions, annuities, and social security
- Differentiation between foreign plans and "U.S. qualified plans"
- Section 402(b) provisions and treatment
- Grantor trust treatment
- Tax treaty applicability
- Identifying and remedying misreporting
Benefits
The panel will review these and other tactical issues:
- Understanding the IRS' position and tests for grantor vs. employee trusts
- The IRS' new 402(b) focus and when bifurcation is appropriate
- Foreign pensions of highly compensated employees
- Form 3520-A: when is it required along with Forms 3520, FBAR and 8938; penalty mitigation strategies
- The treatment of PFICs inside a foreign pension
- Using tax treaties to limit potential liability
- Whether or not to use a disclosure program to correct past misreporting
Faculty

Marsha Laine Dungog, JD, LLM (US TAX)
Director
Andersen
Ms. Dungog has over 18 years of experience providing international tax consulting services to clients seeking to infuse... | Read More
Ms. Dungog has over 18 years of experience providing international tax consulting services to clients seeking to infuse tax sensibility in cross-border acquisitions, financing and expansion for multinational businesses, private equity funds, entrepreneurs and high net worth individuals involving real estate investments, manufacturing and distribution deals, film production and licensing, succession planning and philanthropic ventures. Ms. Dungog was a law clerk to the Hon. Senior Judge Lawrence A. Wright of the United States Tax Court and judicial law clerk to the Hon. Judge Dennis J. Montali of the United States Bankruptcy Court for the Northern District of California. She was also a fellow at the Committee on State Taxation (COST).
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Robert V. Hanson, Esq.
International Tax Attorney
Parent & Parent
Mr. Hanson is the lead attorney in the firm’s International Tax department. He received the CALI Academic... | Read More
Mr. Hanson is the lead attorney in the firm’s International Tax department. He received the CALI Academic Excellence Award in International Tax Policy as well as the Nina E. Olson & Janet Spragens LITC Award for his work as a student representing low income taxpayers before the IRS.
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