Preparing Form 1120-F for Foreign Corporations: 2021 Revisions, ECI, Protective Claims, and Branch Profits Tax
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will provide a practical explanation of completing Form 1120-F, U.S. Income Tax Return of a Foreign Corporation. Our experts will explain how to properly prepare this onerous form, including who is required to file, filing protective returns, and issues for consideration with respect to certain schedules and attachments to the tax return.
Outline
- Who should file Form 1120-F
- Protective Returns
- Treas. Reg. Sec. 1.882-4 along with Adams Challenge (UK) Ltd v. Commissioner and Swallows Holdings, Ltd. v. Commissioner
- Section I - Income From U.S. Sources Not Effectively Connected With the Conduct of a Trade or Business in the United States
- FDAP withholding and when FDAP income reporting is required
- Section II - Income Effectively Connected With the Conduct of a Trade or Business in the United States
- Engaged in a U.S. trade or business
- Activities conducted by a foreign corporation through a U.S. partnership
- Income effectively connected to a U.S. trade or business
- Engaged in a U.S. trade or business
- Section III – Branch Profits Tax and Tax on Excess Interest
- Calculating and reporting the Branch Profits Tax
- Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)
- When treaty-based return position disclosure is required and certain key exceptions to reporting
- Limitations on Benefits Article
- Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business
- Information generally required
- Exceptions from filing
- Filing obligation for Foreign-Owned U.S. Disregarded Entities
Benefits
The panel will review these and other key issues:
- Who is required to file Form 1120-F?
- When should an entity file an 1120-F protective claim, even though not subject to tax and possibly not required to file?
- What methods are used to allocate and apportion ECI and non-ECI expenses on Schedule H?
- What are examples of treaty-based positions that might require filing Form 8833, Treaty-Based Return Position Disclosure?
Faculty
Sean Dokko, J.D., LL.M.
International Tax Partner
Citrin Cooperman
Mr. Dokko is a partner in Citrin Cooperman’s International Tax Practice and is based out of the New York office.... | Read More
Mr. Dokko is a partner in Citrin Cooperman’s International Tax Practice and is based out of the New York office. He practices in all areas of international tax with a focus on inbound and outbound tax planning. He advises clients on U.S. international tax matters, including international tax issues that arise in cross-border M&A, reorganizations, and dispositions. Mr. Dokko has extensive experience in developing, implementing, and reporting tax planning strategies and cross-border restructurings along with advising on issues with respect to U.S. anti-deferral rules, supply chain planning, withholding, tax treaties, financing transactions, and global tax rate reduction. Prior to joining Citrin Cooperman, he was a Principal and Head of Tax at a tax consulting firm in New York City and prior to that, was a Managing Director in the National Tax Office – International of a public accounting firm.
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Alison N. Dougherty, CPA
Managing Member
Googolplex Tax
Ms. Dougherty provides U.S. tax reporting, compliance, consulting, planning, and structuring solutions to U.S. and... | Read More
Ms. Dougherty provides U.S. tax reporting, compliance, consulting, planning, and structuring solutions to U.S. and foreign corporations, partnerships, LLCs, individuals, and trusts. She specializes in U.S. international tax reporting and compliance with the preparation and review of the U.S. federal Forms 5471, 926, 8992, 8993, 5472, 8865, 8858, 8621, 8804, 8805, Schedules K-2 and K-3, 1116, 1118, 1042, 1042-T, 1042-S, 8832, 8833, 2555, 3520, 3520-A, 5713, 1120-F, 1040-NR, 8288, 8288-A, 8288-B, 8233, 8840, 8843, 8854, 8938, and FBAR. Ms. Dougherty has extensive experience working with U.S. businesses and individuals with outbound activities in foreign countries. She has also worked with foreign companies and nonresident individuals with inbound activities in the United States. Ms. Dougherty has significant experience with U.S. nonresident withholding tax, foreign partnership withholding tax, and FIRPTA withholding tax. She has managed U.S. tax compliance and advisory client engagements for U.S. C corporations, S corporations, partnerships, LLCs, U.S. individuals, U.S. trusts, foreign corporations, foreign partnerships, foreign LLCs, nonresident individuals, and foreign trusts.
Ms. Dougherty is a CPA and a tax attorney with more than 15 years of combined experience in public accounting, the practice of law, and corporate industry. She was previously a tax partner in a large regional public accounting firm in the Washington, DC area. Ms. Dougherty has served clients in various industries including technology, U.S. government contracting, commercial services, telecommunications, real estate, investment partnerships, commodities, high net worth individuals, and family offices. She has also served as a technical resource to other CPAs, accountants, tax professionals, public accounting firms, attorneys, and law firms.
