IRS Forms for Reporting Foreign Income: …

1 IRS Forms for Reporting Foreign income : compliance challenges Mastering Latest Demands of Forms 8621, 8858, 2555, 8832 and Others Today s faculty features: 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Please refer to the instructions emailed to the registrant for the dial-in information. Attendees can still view the presentation slides online. If you have any questions, please contact Customer Service at1-800-926-7926 ext. 10. TUESDAY, OCTOBER 23, 2012 Presenting a live 110-minute teleconference with interactive Q&A Douglas Holland, Senior Manager, KPMG, Washington, Russell Mansky, Partner, Spott Lucey & Wall, San Francisco If you have not printed the conference materials for this program, please complete the following steps: Click on the + sign next to Conference Materials in the middle of the left-hand column on your screen.

2 Click on the tab labeled Handouts that appears, and there you will see a PDF of the slides for today's program. Double click on the PDF and a separate page will open. Print the slides by clicking on the printer icon. For best sound quality, we recommend that you listen via the telephone. However, attendees can also view and listen to the presentation slides online. Attendees must stay on the line for at least 100 minutes in order to qualify for a full 2 credits of CPE. Attendance is monitored as required by NASBA. Please refer to the instructions emailed to the registrant for additional information.

3 If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10. FOR LIVE EVENT ONLY Sound Quality For this program, we recommend that you listen via the telephone by dialing 1-866-570-7602 and entering your PIN when prompted. If you dialed in and have any difficulties during the call, press *0 for assistance. You may also send us a chat or e-mail immediately so we can address the problem. Viewing Quality To maximize your screen, press the F11 key on your keyboard. To exit full screen, press the F11 key again. IRS Forms for Reporting Foreign income : compliance challenges Seminar Russell Mansky, Spott Lucey & Wall Oct.

4 23, 2012 Douglas Holland, KPMG Today s Program Foreign income Forms For Corporate Taxpayers [Douglas Holland] Foreign income Forms For Individual Taxpayers [Russell Mansky] IRS Enforcement And Audit Activity In This Area [Douglas Holland] Slide 8 Slide 31 Slide 32 Slide 44 Slide 45 Slide 47 Notice ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY THE SPEAKERS FIRMS TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

5 You (and your employees, representatives, or agents) may disclose to any and all persons, without limitation, the tax treatment or tax structure, or both, of any transaction described in the associated materials we provide to you, including, but not limited to, any tax opinions, memoranda, or other tax analyses contained in those materials. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

6 Foreign income Forms FOR CORPORATE TAXPAYERS Douglas Holland, KPMG 2012 KPMG LLP, a Delaware limited liability partnership and the member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 9 Disclaimer ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY ANY PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

7 You (and your employees, representatives, or agents) may disclose to any and all persons, without limitation, the tax treatment or tax structure, or both, of any transaction described in the associated materials we provide to you, including, but not limited to, any tax opinions, memoranda, or other tax analyses contained in those materials. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

8 form 8832: Entity Classification Election 2012 KPMG LLP, a Delaware limited liability partnership and the member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 11 form 8832: Purpose Election filed only to: Elect classification other than the default Change classifications Protective elections are permitted. Invalid unless all information provided If other filings required: Attach form 8832 If no filings required: Attach form 8832 to filings of any direct/indirect owner 2012 KPMG LLP, a Delaware limited liability partnership and the member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity.

9 All rights reserved. 12 form 8832: Choice Of Entity Approach form 8832 permits taxpayers to generally choose between disregarded entity and corporate treatment for business entities with a single owner, or between partnership and corporate treatment when multiple owners. Consider associated go-forward filing requirements for Foreign entities form 5471 for controlled Foreign corporations (CFCs), form 8865 for controlled Foreign partnerships (CFPs), form 8858 for Foreign disregarded entities Electing flow-through treatment of Foreign subs can generate need for Foreign tax credit Forms (1116 for individuals, 1118 for corporations); dual consolidated loss and 987 QBU monitoring.

10 Election itself can produce filing requirements from attendant deemed transactions. form 926 for outbound transfers to Foreign corporations, Schedule O of form 8865 for transfers to Foreign partnerships form 5471 Reporting (including Schedule O), possible Treasury Reg. (b)-1 notice for converting Foreign corporate subsidiary to flow-through 2012 KPMG LLP, a Delaware limited liability partnership and the member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity.