Check-the-Box Elections: U.S. and Foreign Tax Implications (Currently Unavailable)

Author: Robert J. Misey, Sara L Rapkin

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

Unlock the opportunity to provide your business clients significant tax benefits by understanding the right circumstances to file a timely "check-the-box" election on Form. For example, a company may use foreign taxes paid as a credit to eliminate double taxation. But beware — while the 8832 looks simple, the devil is in the details and an improper understanding of the filing process can have an undesirable tax effect!

This practical course will provide you detailed guidance on how to successfully make a check-the-box election, both on a timely and delinquent basis — and the practical tax planning implications for both domestic and international entities. Former IRS attorney and noted international tax advisor, Robert Misey, J.D., LL.M., M.B.A. and author of the treatise, U.S. Taxation of International Transactions published by Wolters Kluwer, and tax and business law practitioner Sara Rapkin, J.D., will review the rules, tips and traps of entity choice for foreign operations so you get the most favorable results. These experts will also examine the technical guidance provided by the IRS and share their experience in how the IRS applies the rules, focusing on the immediate tax consequences of the election.

Publication Date: July 2017

Designed For
Business tax and finance executives, directors, managers and staff; CPAs; Enrolled Agents; tax preparers and staff; accountants, attorneys and other financial advisors who work with and advise clients with cross-border activities and tax issues.

Topics Covered

  • Fundamentals of "checking the box"
  • Domestic tax implications of checking the box
  • International tax implications of checking the box
  • Timing of Check-the-Box elections
  • Simplified late election procedures versus private letter rulings
  • Completing a Form 8832 "Check-the-box election"
  • International tax compliance for a "checked" entity - Form 8858

Learning Objectives

  • Recognize the tax law, requirements and procedures for making check-the-box elections
  • Identify opportunities where making a check-the-box election will save taxes
  • Recognize which default rules with respect to foreign entity election apply
  • Identify the general requirements when making a late election
  • Differentiate statements regarding an entity taxed as a corporation electing to be treated as a partnership
  • Recognize the characteristics of a Section 331 liquidation of a foreign corporation
  • Identify which types of organization foreign tax credits are available for
  • Recognize which form is used for transfer pricing audits and also includes four filing categories
  • Describe matters of when an organization is an entity separate from its owners
  • Identify the grandfathered provisions for eligible entities are available for specific years
  • Recognize the due date of an election effective on the first day of a taxable year
  • Identify late election methods
  • Differentiate considerations for an S election for an LLC taxed as a partnership to minimize self-employment tax and new Medicare tax risk
  • Describe which conversion an S Corporation acquisition should utilize
  • Recognize the decisions involved to "check-the-box" weighing deferral versus which type of tax rate
  • Differentiate credit conversions and checking-the-box for foreign corporations

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of U.S. domestic and international business income taxation.

Advance Preparation
None

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