Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Individuals with international holdings and activities most often pay primary focus to income tax consequences of their cross-border activities; this approach risks enormous transfer tax consequences, particularly for nonresidents with United States holdings. Noncitizen, nondomiciled individuals directly owning United States–situated assets face massive statutory exposure to United States transfer taxes, with minimal exclusion amounts ($60,000 for estate tax purposes) and tax rates quickly reaching 40%.
This course will cover the classification of individuals for transfer tax purposes and the scope of assets to which United States transfer taxes are applicable. The course will then discuss tax assessment, categories of exempt assets, and estate and gift tax treaty interplay with statutory rules.
Publication Date: April 2023
Topics Covered
- Classifying individuals for transfer tax purposes
- When transfer taxes are applicable
- Tax assessment
- Categories of exempt assets
- Estate and gift tax treaty interplay with statutory rules
Learning Objectives
- Recognize how individuals are classified for United States estate and gift tax purposes
- Identify estate and gift tax exposures for noncitizen nondomiciled individuals
- Recognize how to analyze the impact of estate and gift tax treaties on estate and gift tax exposures
- Identify United States rules for foreign trusts
- Identify functional complexities arising for United States-based taxpayers with foreign holdings
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of international taxation
Advance Preparation
None
Instructor
Patrick McCormick
Patrick McCormick is an attorney with over a dozen years of experience, focusing his practice specifically on international taxation. Mr. McCormick represents both business and individual clients on all aspects of United States international tax rules, both from an income tax and estate/gift tax perspective. Having previously served as a partner at a large law firm, a midsized accounting firm, and a boutique tax law firm, Patrick’s client exposures have covered every conceivable area of American-side international tax matters. Patrick has also represented every type of taxpayer – from multibillion-dollar business enterprises and ultra-high net worth individuals to startups and individuals with complex questions but limited budgets.
Mr. McCormick has worked with clients located in over 90 countries on American tax considerations of multinational activities, cultivating specialized knowledge in every area of United States international tax rules. His explicit practice focus has facilitated an unparalleled expertise in the field; Patrick is trusted by clients and advisors around the world to obtain optimal results on international tax matters.
Mr. McCormick is a primary and prolific authority on tax matters. He has spoken on all aspects of international tax to hundreds of thousands of attendees around the globe, functioning as the primary international tax resource for many national organizations. Patrick has presented for the American Bar Association, the American Immigration Law Association, and state and local bar associations around the United States. He is a regular contributor to America’s premier tax law publications, including Tax Notes, Journal of Taxation, Tax Notes International, Law360, and Practical Tax Lawyer.
Mr. McCormick published his first treatise on international tax matters, Allocation and Apportionment Rules Under Secs. 861-865, for Thomson Reuters’ Catalyst platform, in October 2021. In late 2021, he also released a 15-hour digital course entirely dedicated to nonresident taxation, United States Tax Considerations for Nonresident Taxpayers. Mr. McCormick has been named a Super Lawyers Rising Star from 2016-2022.
Mr. McCormick counsels a range of clients from individuals to businesses with their international tax and legal needs. When counseling individual clients, Mr. McCormick assists with residency planning, asset ownership structuring, and minimization of global income tax bills for foreign-sourced income items. His business client representation includes an extensive scope of multinational transactions, including classification of foreign entities, options for structuring multinational transactions, and minimization of American anti-deferral tax mechanisms. Mr. McCormick’s specific and comprehensive practice allows him to assist clients when international factors are most relevant.