Choice of Entity for Foreign Operations via Checking-the-Box: Elections on Form 8832 and Compliance on Form 8858

Author: Robert J. Misey

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

In the right circumstances, a timely filed "check-the-box" election on a Form 8832 for a business entity can offer significant tax benefits to U.S. taxpayers. For example, a company may use foreign taxes paid as a credit to eliminate double taxation. A check-the-box election must be properly filed within 75 days of its effective date on a Form 8832. Although ostensibly a simple looking form, an improperly filed Form 8832 can have a deleterious tax effect.

Publication Date: October 2023

Topics Covered

• The fundamentals of Checking-the-Box
• Domestic tax implications of Checking-the-Box
• International tax implications of Checking-the-Box
• Timing of Check-the-Box elections
• Simplified late election procedures versus private letter rulings
• Completing a Form 8832 "Check-the-Box election"
• International tax compliance for a "checked" entity

Learning Objectives

• Identify the tax law, requirements and procedures for making check-the-box elections
• Identify opportunities where making a check-the-box election will save
• Identify the Revenue Procedure for late elections that provides for a shorter, faster, and cheaper option
• Identify the entity that is eligible to claim the dividends received deduction
• Identify the schedule of Form 8858 that includes the income statement

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None