Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 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
This course will cover a discussion of the U.S. withholding tax rules under Chapter 3 (FDAP) of the Internal Revenue Code (IRC), corresponding IRS forms/compliance relating to withholding tax on FDAP, and (Income) Tax Treaty Application (e.g., DTT/Convention).
Publication Date: November 2021
Designed For
Experienced tax staff through tax director level interested in or already practicing U.S. international income taxation.
Topics Covered
- What are the fundamental U.S. withholding tax rules under Chapter 3 of the IRC?
- What is FDAP?
- What are the basic IRS compliance and potential documentation requirements for U.S. withholding taxation under Chapter 3 of the IRC?
- Tax treaty application and mitigation of the statutory U.S. withholding tax rate
Learning Objectives
- Identify the Chapter 3 U.S. withholding tax rules
- Recognize items of FDAP income
- Recognize IRS forms, compliance, and/or documentation that may be required to report and comply with the U.S. withholding tax rules under Chapter 3 of the IRC
- Recognize that U.S. has income tax treaties (e.g., DTTs or Conventions) with many countries, and applicable treaties may mitigate or eliminate the statutory rate of U.S. source withholding
- Identify the percentage the payer must backup withold if a receipent does not provide Form W-9 and is not exempt
- Identify the first step in how a treaty becomes a law
- Recognize what applies if a person is determined not to be a resident of either country under each country's respective tax laws
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Read IRC Sections 871, 881, 1441, and 1461. Read Form 1042-S Instructions.
Advance Preparation
None
Instructor
Adnan Islam
Adnan Islam, Esq., CPA, is a partner with Friedman LLP, co-chair of the International Tax Services group, and a leader of its Blockchain/Digital Asset Transactions group. He has nearly 17 years of public accounting experience as a licensed tax attorney and CPA. Adnan has served an array of industries and clients ranging from startups to publicly traded companies including Avon, MeadWestVaco, Honeywell, Verizon, Agilent, SunGard, Booz Allen, IDT, SunGard, AMEX, OUAI, IBISWorld, Conair, Grayscale, DCG, and various blockchain and crypto (digital asset) companies, exchanges, and private equity and hedge funds. Adnan specializes in cross-border strategies, comprehensive inbound tax services, global information reporting, and structuring for crypto funds, companies, and exchanges.
As an industry thought leader, Adnan has lectured on international tax at TEI events, AICPA seminars and served as an adjunct professor for Golden Gate University Master’s in Tax curriculum. Adnan’s expertise includes advising clients at all stages of business and restructuring, with respect to FDII, GILTI, 245A DRD, subpart F, PFICs, and other issues. Additionally, Adnan empowers his clients’ decision-making and improves their supply chain and operational efficiency, including the use of holding companies, treaty country networks, and affirmative tax planning through comparative rate modeling.
Adnan is a licensed attorney admitted to practice law in New Jersey, DC, and California and a Certified Public Accountant (NY & CA). He holds a Juris Doctor (J.D.) and an M.B.A. from Rutgers University; an LL.M. in Taxation from the New York University School of Law; a blockchain business certificate from MIT; and is currently enrolled in Georgetown Law's Tax LL.M. (International Tax Certificate) program. Adnan has been admitted as a Certified Legal Specialist in Tax Law by the State Bar of California. He also is an (inactive) enrolled agent (through IRS exam).