Join us for a two day session with group live instruction on the most updated changes on foreign tax credit issues.

Benefits of Attending

• Mergers and Acquisitions
• The effect of losses on foreign tax credit limitations
• Washington Update on foreign tax credits
• Foreign tax credit optimization
• Understanding the interest and R&D expense apportionment rules

Educational Course Credit — Up to 13 CPE / CLE Credits Available

Substitutions/Cancellations

Cancellations received more than 72 business hours prior to the meeting will be issued a credit. A $350 fee will apply to cancellations received within 72 business hours of the event. No credit card or cash refunds will be issued at any time. For more information regarding administrative policies, such as complaints and refunds, please contact us at 1-914-328-5656, or e-mail info@citeusa.org. Credits will not be issued for "no shows"

Day One

8:00 AM Registration and Continental Breakfast

8:20 AM Chairperson's Introduction and Overview

8:30 Round Table Discussion “ Washington Update on Foreign Tax Credits “

• This Panel will discuss the August 2010 legislative changes to the Foreign Tax Credit, along with recent and anticipated IRS guidance and Presidential proposals for 2011-12

10:00 AM Refreshment Break

10:15 AM Understanding Basic Foreign Tax Credit Mechanics

• Standards for Creditability under Section 901, including the IRS's current position on the Mexican IETU
• In lieu of taxes under Section 903 and PP&L v. Commissioner addressing the UK windfall profits tax
• Crediting taxes v. deducting them and the Tax Court's decision in Chrysler Corp. v. Commissioner
• Update on the "technical taxpayer" rule, including the application of Guardian Industries v. United States to countries other than Luxembourg and the potential impact of new section 909 on audit years
  
• Mechanics of the Indirect Credit under Sections 902 and 960 and the Section 78 Gross-Up
• Treatment of indirect credits through partnerships

11:15 AM Understanding the Section 904 Foreign Tax Credit Limitation

• Rationale for multiple baskets
• Description of the foreign tax credit baskets
• Mechanics of, and differences between, the look-through rules in Sections 904(d)(3) for CFCs and 904(d)(4) for 10/50 companies
• Review of American Air Liquide Inc., v. Commissioner and regulation 1.904-4(b)(2)(i)
• Foreign tax credit carrybacks and carryforwards under section 904(c)

12:00 AM Lunch

1:00 PM The Effect of Losses on the Foreign Tax Credit Limitation

• Calculation and effect of separate limitation losses and consequences of recapture
• Calculation and effect of overall foreign losses and the consequences of recapture under sections 904(f)(1) and (3)
• Calculation and effect of overall domestic losses and recapture under section 904(g)
• Effect of capital losses on the Section 904 limitation and application of the section 904(b) regulations to U.S. based multinationals

2:00 PM Refreshment Break

2:15 PM General Overview of Sourcing Rules on Foreign Tax Credit Limitation

• Overview of sourcing rulesSourcing revenue items, like sales of inventory, depreciable property, and stock
• Review of FSA 200152006 addressing the application of section 863(b) to maquiladora operations
• Sourcing expense items and review of TAM 200134007 and allocation of expenses to a foreign permanent establishment

3:15 PM       Foreign Tax Credit Aspects of Mergers & Acquisitions Transactions

• Taxable acquisition of foreign target. Effect of section 338(g) election and the effect of section 338(h)(16) on the foreign tax credit limitation
• Impact of new section 901(m):  Are section 338(g) elections still desirable?
• Tax-free acquisition of foreign target's stock. Effect on E&P and foreign tax credit pools
• Foreign mergers, spinoffs, and restructurings. Effect of section 367(b) regulations on E&P and foreign tax credit pools

4:15 PM Foreign Tax Credit Optimization

• Defining optimal foreign tax credit planning
• Outline foreign tax credit planning objectives
• Planning techniques for taxpayers in a managed foreign tax credit position, excess credit position, excess limitation position and overall foreign loss position

5:15 PM Meeting Adjourns

Day Two

7:45 AM Continental Breakfast

8:30 AM Understanding the Interest and R&D Expense Apportionment Rules

• Apportioning interest expense to U.S. & foreign sources, including discussion of TAM 200212001
• When to use the fair market value method v. the tax book value method
• Understanding the CFC netting rules
• Allocation of R&D expense to U.S. and foreign source income, including discussion of CCA 200243020
• “Disappearing R&D” and a review of the Supreme Court's decision in Boeing Co. v. United States

9:45 AM Refreshment Break

10:00 AM Foreign Tax Credit Redeterminations Under Section 905 (c)

• Proving the amount of taxes paid and Riggs National Corporation v. Commissioner
• Temporary regulations addressing circumstances in which a redetermination is required
• Procedural aspects of foreign tax credit redeterminations. Notifying the IRS and penalties for failure to do so
• Currency translation issues when foreign taxes are redetermined

11:15AM Avoiding the IRS Foreign Tax Credit Anti-Abuse Provisions

• Temporary regulations on "Structured Passive Investment Arrangements" treating certain foreign taxes as noncomulsory and not creditable; discussion of Hewlett-Packard v. Commissioner, U.S. Tax Court Docket No. 21976-07
• Review of Notice 2003-50 addressing stapled entities in foreign tax credit planning
• The Tax Court and appellate court decisions in Compaq v. Commissioner and IES v. Commissioner
• Understanding the holding period requirements in Section 901(k)
• Impact of Section 904(i) and de-consolidation to avoid foreign tax credit limitation
• Impact of the Tax Shelter Disclosure regulations and new Schedule UTP on foreign tax credit planning transactions

12:30PM Seminar Ends

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