Taxation of Foreign Pensions: Application of IRC 402(b) and Avoiding Penalties for Noncompliance
Tax Rules Governing Foreign Pension Accounts, Foreign vs. U.S. Qualified Plans, Use of Tax Treaties, IRS Examinations
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide tax counsel and ERISA attorneys a detailed analysis of the tax rules governing foreign pension accounts, with a specific focus on avoiding penalties for noncompliance. The webinar will go beyond the basics to offer useful practice pointers on the application of IRC 402(b) to foreign pensions and annuities, the difference between foreign and U.S. qualified plans, the IRS approaches to foreign pensions during examinations, and tips to prevent potentially costly tax penalties and sanctions.
Outline
- Information reporting and classification of foreign pensions, annuities, and Social Security
- Differentiation between foreign plans and "U.S. qualified plans"
- Section 402(b) provisions and treatment
- Grantor trust treatment
- Tax treaty applicability
- Identifying and remedying misreporting
Benefits
The panel will review these and other tactical issues:
- Understanding the IRS' position and tests for grantor vs. employee trusts
- The IRS' 402(b) focus and when bifurcation is appropriate
- Foreign pensions of highly compensated employees
- Form 3520-A: when is it required along with Forms 3520, FBAR, and 8938; penalty mitigation strategies
- The treatment of PFICs inside a foreign pension
- Using tax treaties to limit potential liability
- Whether or not to use a disclosure program to correct past misreporting
Faculty
James P. Klein
Senior Counsel
Pillsbury Winthrop Shaw Pittman
Mr. Klein focuses his practice in the areas of executive compensation and benefits, and tax. He has broad experience... | Read More
Mr. Klein focuses his practice in the areas of executive compensation and benefits, and tax. He has broad experience servicing clients in the areas of employee benefits, retirement plans, insurance and in the international taxation of compensation and benefits, from the employee and employer perspective. He represents companies on U.S. and non-U.S. tax and labor issues and works with corporations in ensuring that their employee benefit plans comply with ERISA.
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Patrick J. McCormick, J.D., LL.M.
Partner
Rimon Law
Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has... | Read More
Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has published assorted national articles and given innumerous national and local presentations on assorted areas of international tax. He is licensed to practice in the State of New Jersey and the Commonwealth of Pennsylvania.
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