Section 956 Proposed Regulations: How to Make it Work to Your Advantage
In October 2018, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued proposed regulations that would exempt certain U.S. controlled foreign corporation (CFC) shareholders from Internal Revenue Code (IRC) section 956 deemed dividend rules.
Although the proposed regulations favor many corporate taxpayers, one must not forget that section 956 still applies. Moreover, not all CFC shareholders covered by section 956 can claim the benefits of the new participation exemption. Inaction in the U.S. Congress is also limiting the scope of the relief provided by the proposed rules. This poses potential pitfalls for the unwary.
In this LIVE Webcast, a panel of key thought leaders organized by The Knowledge Group will provide an overview to help you understand the critical elements of the proposed Section 956 regulations and its potential effects on corporate taxpayers. Speakers will also offer the best strategies on how to maximize the potentials of and mitigate the risks posed by the new participation exemption.
Key topics include:
- The Proposed Section 956 Regulations
- Benefits for Corporate Taxpayers
- Risk Issues and Pitfalls
- Recent Developments
- Best Practices
Blank Rome LLP
Blank Rome LLP
- Background discussion of Section 956, its importance in credit agreements and the market positions that developed as a result of such provision;
- Strategic Use of Section 956;
- Discussion of relevant changes under the Tax Cuts and Jobs Act of 2017, and how such changes began to shift the market practice of limiting collateral with respect to foreign investments;
- Substantive Overview of the Proposed Regulations under Section 956 with examples and illustrations;
- Potential positions that lender may take with respect to collateral in foreign subsidiaries in light of the Proposed Regulations;
- Borrower pitfalls to lender positions, and potential responses to lenders (including when Borrower has a pass-through structure).
Who Should Attend:
- Tax Preparers
- Tax Practitioners
- Tax Professionals
- In-house Counsel
- Multinational Companies
- Other related/interested Professionals and Organizations
Joseph Gulant has considerable experience in domestic and international taxation matters. He counsels public and private corporations, partnerships, funds, real estate and maritime-related companies, tax-exempt organizations, and individuals in all aspects of United States and international tax law, including:
- mergers and acquisitions
- real estate transactional tax planning, including representation of REITs
- international tax matters including outbound stock transfers, tax havens, and treaty shopping issues
- formation, operation and acquisition of Subchapter S Corporations
- structured finance offerings such as mortgage backed bonds, credit card securitizations, conduit arrangements, and owner trust financings
- bankruptcy reorganizations, workouts, and restructurings
- domestic and international leveraged leasing transactions
- executive compensation planning
He also has extensive experience with tax controversies, including criminal tax investigations and prosecutions, civil audits, appeals, and collections matters.
Joseph is a contributor to Blank Rome’s Tax Controversy Watch blog (www.taxcontroversywatch.com), which focuses on addressing and providing a comprehensive review of the latest developments in the tax controversy field. Additionally, he publishes and lectures frequently on many varied taxation matters.
Joseph Gulant has considerable experience in domestic and international taxation matters. He counsels public and private corporations, partnerships, funds, real estate …
Jeffrey Rosenfeld concentrates his practice in the area of business tax law. He counsels public and private corporations, partnerships, and individuals in a broad array of tax matters including:
- domestic and international tax matters
- state and local tax planning
- tax-efficient structuring of domestic and international mergers, acquisitions, divestitures, reorganizations, spin-offs, redemptions, and liquidations
- formation, operation, and acquisition of Subchapter S Corporations, partnerships, and limited liability companies
- federal, state, and local criminal and civil tax controversies, including audits, administrative appeals, and litigation
- issuances of equity-based compensation
Jeffrey counsels corporate clients and individuals regarding undeclared foreign bank accounts, including “FBAR” reporting obligations, and has represented numerous clients in the Internal Revenue Service’s Offshore Voluntary Disclosure Program.
Jeffrey is a frequent contributor to Blank Rome’s Tax Controversy Watch blog, which focuses on addressing and providing a comprehensive review of the latest developments in the tax controversy field.
Jeffrey obtained his L.L.M. in Taxation from New York University School of Law in 2012. During the 2009–2010 academic year, Jeffrey was a graduate editor for the NYU Journal of Law & Business. While in law school, he volunteered as a tax preparer for Volunteer Income Tax Assistance (“VITA”), and was a student counselor for the Entrepreneurship Legal Clinic.
Jeffrey Rosenfeld concentrates his practice in the area of business tax law. He counsels public and private corporations, partnerships, and …
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Method Of Presentation:
General knowledge of corporate tax laws
NY Category of CLE Credit:
Areas of Professional Practice
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About Blank Rome LLP
Blank Rome is an Am Law 100 firm with 13 offices and more than 600 attorneys and principals who provide comprehensive legal and advocacy services to clients operating in the United States and around the world. Our professionals have built a reputation for their leading knowledge and experience across a spectrum of industries, and are recognized for their commitment to pro bono work in their communities. Since our inception in 1946, Blank Rome’s culture has been dedicated to providing top-level service to all of our clients, and has been rooted in the strength of our diversity and inclusion initiatives. For more information, please visit blankrome.com.