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International Tax: An Overview of PFICs

INTERNATIONAL TAX: AN OVERVIEW OF PFICs

Cost Free
Presentation Length 1.5 hours

Recorded DateSeptember 29, 2023
CPE:Not available
(archived webinars do not offer CPE credits)
Subject AreaTaxes
Course LevelIntermediate
Course Description

This course will detail the primary rules associated with passive foreign investment companies (PFICs). Included within the program will be guidance on determining whether a foreign interest qualifies as a PFIC, explicitly focusing on foreign entities’ classification and determinations regarding passive income levels (even where books and records are unavailable). The program will also review the specific default tax rules applicable to PFICs and where/how they apply. Additionally, the webinar will also outline alternative elections available for taxing PFIC interests and eligibility requirements.

Learning Objectives:


  • Identify when a foreign interest triggers the passive foreign investment company rules, with a specific focus on qualifying income/assets and foreign corporate status

  • Define the default rules regarding PFIC taxation, including appliable interest charges and gain reclassification

  • Identify elective alternatives to the default rules for PFIC treatment and requirements to be eligible for elective alterations

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PLEASE NOTE: ARCHIVED WEBINARS DO NOT QUALIFY FOR CPE
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Patrick McCormick is an attorney with over a dozen years of experience, focusing his practice specifically on international taxation. Mr. McCormick represents both business and individual clients on all aspects of United States international tax rules, both from an income tax and estate/gift tax perspective. Having previously served as a partner at a large law firm, a midsized accounting firm, and a boutique tax law firm, Patrick’s client exposures have covered every conceivable area of American-side international tax matters. Patrick has also represented every type of taxpayer – from multibillion-dollar business enterprises and ultra-high net worth individuals to startups and individuals with complex questions but limited budgets.


Mr. McCormick has worked with clients located in over 90 countries on American tax considerations of multinational activities, cultivating specialized knowledge in every area of United States international tax rules. His explicit practice focus has facilitated an unparalleled expertise in the field; Patrick is trusted by clients and advisors around the world to obtain optimal results on international tax matters.


Mr. McCormick is a primary and prolific authority on tax matters. He has spoken on all aspects of international tax to hundreds of thousands of attendees around the globe, functioning as the primary international tax resource for national organizations including CPAacademy.org, Strafford, Lawline, and Leimberg Information Services. Patrick has presented for the American Bar Association, the American Immigration Law Association, and state and local bar associations around the United States. He is a regular contributor to America’s premier tax law publications, including Tax Notes, Journal of Taxation, Tax Notes International, Law360, and Practical Tax Lawyer.


Mr. McCormick published his first treatise on international tax matters, Allocation and Apportionment Rules Under Secs. 861-865, for Thomson Reuters’ Catalyst platform, in October 2021. In late 2021, he also released a 15-hour digital course entirely dedicated to nonresident taxation, United States Tax Considerations for Nonresident Taxpayers. Mr. McCormick has been named a Super Lawyers Rising Star from 2016-2022.


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