Sales of U.S. Partnership Interests by Foreign Partners: Sections 864(c)(8) and 1446(f) Webinar, 4th March 2022 - ResearchAndMarkets.com

The "Sales of U.S. Partnership Interests by Foreign Partners: Sections 864(c)(8) and 1446(f)" webinar has been added to ResearchAndMarkets.com's offering.

Understand how foreign persons holding interests in entities classified as partnerships are subject to United States federal income tax.

In July 2017, the United States Tax Court issued the Grecian Magnesite decision, which held that contrary to prior IRS guidance foreign partners were largely not subject to tax on such a disposition, even if the partnership was engaged in a U.S. business.

The congressional response was swift. In a manner of months and as part of the legislation commonly referred to as the Tax Cuts and Jobs Act, the Internal Revenue Code was amended to make clear that such dispositions did raise the potential for U.S. tax. The TCJA further enacted a new withholding regime applicable to transferees of such partnership interests as a collection mechanism, similar in structure to the FIRPTA regime.

In the months that followed, the IRS issued notices and proposed regulations, and in October/November 2020, final regulations on the statutory amendments. This topic will offer tax professionals an understanding of the contours of the administrative guidance that has been promulgated in this area to date.

The manner of calculating the gain treated as effectively connected with a U.S. business, and the amount realized base for withholding will also be discussed. This topic will explore the exceptions from withholding and required information to satisfy relevant safe harbors and will also identify areas of remaining uncertainty and guidance that the IRS has noted is still forthcoming.

Learning Objectives

• You will be able to describe how foreign persons holding interests in entities classified as partnerships are subject to U.S. federal income tax upon dispositions of such interests.
• You will be able to discuss withholding obligations imposed on transferees of interests in entities classified as partnerships where the seller is a foreign person.
• You will be able to explain the exceptions and limitations on withholding.
• You will be able to identify opportunities to structure investments by foreign persons in a manner that mitigates the potential for application of withholding rules on exit.

Who Should Attend:

This webinar is designed for accountants, CPAs, attorneys, CEOs, presidents, vice presidents, CFOs, controllers, financial planners, bookkeepers, business owners, enrolled agents, and tax preparers.

Key Topics Covered:

History

• Prior to the Enactment of the TCJA
• TCJA Statutory Amendments
• Regulatory Guidance Issued Subsequent to TCJA Amendments

Substantive Tax Liability Arising From a Sale of a Partnership Interest by a Foreign Person

• Tax Liabilities of Foreign Partners Generally
• Characterization of Gain and Hypothetical Sale of Assets

Liability of Transferees to Withhold on Proceeds

• Amount Realized Base
• Determination Date
• Deadlines and Forms

Exceptions and Limitations on Withholding

• Available Certifications
• Information and Parties Necessary for Certain Certifications
• Maximum Tax Liability Exception

Obligations Imposed on Partnerships in Connection With Dispositions

• Certifications and Information That Must Be Sourced From the Partnership
• Residual Liability to Withhold on Distributions to the Transferee

For more information about this webinar visit https://www.researchandmarkets.com/r/rvkn57

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