Gain a better understanding on why Form 1120-F filing compliance matters, and why filing a protective Form 1120-F becomes a necessity in certain situations.
Since the Internal Revenue Service’s announcement in January 2017 that Form 1120-F noncompliance would become a focus of its Large Business and International Division’s Audit and Compliance Campaign, foreign corporations with connections to the United States are becoming increasingly aware that the stakes for Form 1120-F noncompliance are very high.
Foreign corporations must file Form 1120-F if they engaged in a U.S. trade or business, or had income, gain or loss that would be treated as effectively connected with the conduct of a U.S. trade or business. Beyond these two main criteria, a foreign corporation taking the position that it avoided triggering a permanent establishment in the United States or claiming some other income tax treaty benefit must also file to report that position.
Foreign corporations with only limited activities in the United States may file a protective return to preserve tax benefits if an IRS examination later proves the corporation should have filed a return. This information helps both tax and nontax professionals to understand the types of connections or activities undertaken by foreign corporations in the United States that trigger Form 1120-F reporting, and to distinguish those activities from transactions that do not trigger such reporting.
The information also helps you to understand why Form 1120-F filing compliance matters, and why filing a protective Form 1120-F filing becomes a necessity in certain situations.
Learning Objectives:
- You will be able to explain why Form 1120-F reporting matters and the penalties and other tax costs associated with noncompliance.
- You will be able to identify connections to the United States by foreign corporations that trigger Form 1120-F reporting.
- You will be able to recognize the interaction between U.S. income tax treaty provisions and Form 1120-F reporting.
- You will be able to review situations in which protective Form 1120-F return filing becomes necessary and the benefits associated with such filing.
Who Must File?
• U.S. Trade or Business Activities
• Effectively Connected Income (ECI) Reporting
• U.S. Income Tax Not Satisfied Through Withholding
• Reporting Treaty-Based Positions (e.g., With Respect to Permanent Establishment)
Exceptions to Filing
• No U.S. Trade or Business Activities, and No Tax Liability
• Certain Exempt Income Only
• Beneficiary of Estate or Trust Engaged in U.S. Trade or Business
Protective Returns
Penalties
Policing Form 1120-F Filing Compliance: IRS Audits
• IRS LB&I Form 1120-F Campaign
• Identification of Targeted Taxpayers
• "Soft Letters" to Potentially Delinquent Filers
Credit Information (Sponsored by Lorman Education Services):
- CPE
- AIPB
- NASBA
- Enrolled Agents
For Detailed Credit Information page
click here
Only registered attendee will receive continuing education credit.
Faculty
Stanley A. Barsky, Esq.,Fox Rothschild LLP
- Partner in the New York office of Fox Rothschild LLP
- Practice involves a broad range of transactional and general advisory tax law matters, with a focus on international tax issues, and represents clients in tax audits
- Conducts regular seminars and workshops on numerous tax issues, including transactional and international tax matters, accounting methods, and others
- Wrote several publications related to the areas of transactional and international tax matters, accounting methods, and others
- American Bar Association, New York State Bar Association
- LL.M. degree, New York University School of Law; J.D. degree, cum laude, University of Miami School of Law; B.S. degree, Vanderbilt University
- Can be contacted at 212-878-7949 or s.barsky@foxrothschild.com
Ronald Kalungi, Esq., Anchin, Block & Anchin LLP
- Senior tax manager in the New York office of Anchin, Block & Anchin LLP
- Practice involves a wide range of cross-border/international tax planning, consulting and compliance services
- Conducts both internal and external seminars on international tax developments on a regular basis
- Wrote several publications on international tax topics
- American Bar Association, New York State Bar Association
- J.D. degree and LL.B degree, Makerere University School of Law; LL.M. degree, Harvard Law School
- Can be contacted at 212-863-1272 or ronald.kalungi@anchin.com
(Not available outside the US)