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Understanding the basics of owning stock in a foreign company: CFC vs PFIC
IRS Program #: X9QQU-T-01084-23-O
CTEC #: 6257-CE-0250
CE: 1 IRS & 1 CTEC credit
Speaker: Rita Ryan, JD, LLM
U.S. individuals with investments in foreign companies face multiple tax complexities. The U.S. has enacted legislation that prevents the deferral of profits earned through a foreign company. This anti-deferral rules cover two different types of companies: Controlled Foreign Corporation (CFC) or Passive Foreign Investment Company (PFIC). This session will discuss the basics of the anti-deferral regimes applicable to both CFC and PFICs, its tax implications and some of the basics of the applicable reporting rules.
- Determine the tax implications applicable to a U.S. person owning foreign companies.
- Identify a CFC.
- Identify a PFIC.
- Establish the precise tax implications of a CFC and a PFIC.
- Identify the basic reporting rules applicable to a CFC and PFICs.