United States Tax Considerations For Nonresident Taxpayers Series – Inbound

Course Objectives 

Classification of Nonresident Entities

• Threshold Considerations
• Is the Entity a Trust?
• Foreign Business Entities
• Foreign Business Entities – Entity Classification
• Foreign Business Entities – Elections
• Foreign Business Entities – Relevance Determinations
• Taxation of Foreign Business Entities
• Foreign Corporations – Subpart F Income
• Foreign Corporations – GILTI
• GILTI – Regulatory Guidance
• Foreign Corporations – Passive Foreign Investment Companies

Tax Classification of Individuals

• Income Tax Classification
• Taxpayer Classification
• Special Options for Nonresident U.S. Taxpayers
• Foreign Tax Credit
• Foreign Earned Income Exclusion
• Expatriation
• United States Transfer Tax Classification

Transfer Taxes for American Nondomiciliaries

• Background Considerations
• Initial Considerations – Taxpayer Classification
• Taxpayer Classification
• United States Transfer Taxes – Classification
• Nonresident Individuals – Transfer Taxes
• Foreign Trusts
• Planning Mechanics

Compliance Requirements for Nonresidents

• Background Considerations
• Income Tax Reporting
• Information Filing Obligations
• Form 8832
• Form 8833
• Form 1042
• Form 1042-S
• Form W-8ECI
• Forms W-8BEN/W-8BEN-E
• Form 5472
• Corporate Transparency Act

Foreign Investment in United States Real Property

• Effectively Connected Income
• FDAP Income
• Nonresidents – ECI vs. FDAP Income
• Effectively Connected Income
• Nonresidents – Net Election to Treat Real Property Income as ECI
• Foreign Investment in United States Real Property (“FIRPTA”)
• Nonresidents – FIRPTA
• FIRPTA – Withholding Obligations
• Nonresident Individuals – Transfer Taxes
• Structuring Nonresident United States Real Estate Investments

Income Tax Inclusions for Nonresidents: Statutory Rules

• Background Considerations
• Effectively Connected Income
• Foreign Corporations – Branch Profits Tax
• FDAP Income
• Withholding Requirements
• Nonresident Tax in a Digital Economy

Income Tax Inclusions for Nonresidents: Tax Treaty Modifications

• Income Tax Treaties – Basic Structure
• Income Tax Treaties – Who Can Obtain Benefits?
• Tax Treaties – Common Provisions
• Permanent Establishments
• Permanent Establishment Mechanics
• Permanent Establishments in a Digital Economy
• Tax Treaties – FDAP Income
• FDAP Income Modification Examples
• Reporting Requirements

Income Sourcing Rules

• Income Sourcing Rules
• Interest
• Dividends
• Personal Services Income
• Multiyear Compensation Arrangements
• Income from Property Use
• Income from Property Disposition
• Other Rules of Note
• Foreign Derived Intangible Income
• Domestic Corporations – FDII
• Foreign Derived Intangible Income

 Nonresident Taxation: Introduction to Considerations

• Background Considerations
• Income Tax Treaties – Basic Structure
• Tax Treaties – Common Provisions
• Tax Treaties – FDAP Income
• United States Transfer Taxes – Classification
• Income Tax Reporting

 Nonresident Taxation Planning Opportunities and Practice Considerations

• Structuring Nonresident United States Investments
• Structuring Nonresident Investments
• Pre-Immigration Tax Planning
• Expatriation Considerations

United States Tax Considerations for Multinational Activities – Outbound

Course Objectives

Individual Tax Considerations

• Learn how individuals are classified as United States tax residents for income tax purposes, and reclassification provisions available
• Analyze the classification rules for individuals in the context of estate and gift taxes, and evaluate their implications for tax planning and compliance
• Understand how individuals minimize double taxation on foreign-sourced income

GILTI and FDII: Structuring Multinational Businesses

• Learn how foreign entities are classified for U.S. tax purposes
• Learn how to determine whether a foreign corporation is a controlled foreign corporation subject to GILTI/Subpart F rules
• Understand how GILTI and Subpart F provisions create current inclusions for U.S. shareholder
• Recognize the potential benefits of U.S. incorporation for foreign activities based on the FDII deduction
• Understand how to determine the best option for structuring foreign activities

International Tax: Foreign Trusts for U.S. Taxpayers

• Learn how trust structures are classified for United States tax purposes
• Learn special United States income tax rules applicable to foreign nongrantor trust structures
• Understand how foreign retirement assets and classified and taxed for United States purposes

Reporting Foreign Accounts and Assets

• Learn how foreign accounts are reported for FBAR purposes
• Obtain up-to-date information on FBAR case law
• Understand how FBAR penalties are assessed and collected
• Ascertain how foreign interests are reported for Title 26 purposes
• Obtain up-to-date information on Title 26 foreign information reporting case law

International Tax: PFICs

• Know how to determine whether a foreign entity is a passive foreign investment company
• Understand the default rules for PFIC taxation and elections available to alter the same (QEF and MTM elections)
• Learn how PFIC interests are reported for tax return purposes

Retroactive Relief Options for International Tax Compliance Errors

• Understand how foreign-sourced income is reported on United States returns and how foreign assets are reported for information purposes
• Learn in detail how submissions are made under the Streamlined Filing Procedures, and general considerations for a submission/qualification
• Learn in detail how submissions are made under the Delinquent FBAR/International Information Return Submission Procedures, and general considerations for a submission/qualification