The 2013 U.S. International Tax Guide describes the U.S. taxation of both U.S. taxpayers’ foreign income and foreign taxpayers’ U.S. income, and covers:
This publication is a comprehensive survey of how the United States exercises its tax jurisdiction over the international transactions of both individuals and business entities.
Organized by the nature of the transaction and the type of taxpayer, this book is an accessible guide for users seeking an introduction to the U.S. international tax system, as well as for the more experienced reader who is looking for ready answers. It is written in easy-to-understand language, supported by numerous examples and citations to the underlying authority.
The steady increase in international trade and travel requires that competent tax practitioners be familiar with the rules for how the United States taxes crossborder transactions. Readers should find this book to be a useful entry point to this challenging and changing area of tax practice.The 2013 U.S. International Tax Guide eBook is now available. Click here to purchase.
¶110. Foreign Income Taxation – General Principles
OVERVIEW
¶110.01. Interplay Between Foreign Tax Rules and General Federal Income Tax Rules
¶110.02. U.S. Jurisdiction to Tax Foreign Persons and Income
A. Scope of U.S. Power to Tax Income
B. Pattern of Taxation
C. Taxation of Individuals Who Were Formerly U.S. Citizens or Long-Term U.S. Residents
¶110.03. The Persons Taxed
A. Introduction
B. Classification of Taxable Persons
1. Introduction
2. Classification Rules
a. Individuals b. Corporations c. Partnerships and Partners d. Trusts and Estates e. S Corporations
a. Individuals
b. Corporations c. Partnerships and Partners d. Trusts and Estates e. S Corporations
b. Corporations
c. Partnerships and Partners
d. Trusts and Estates
e. S Corporations
¶110.04. Characterization of Income and Transactions
¶110.05. Source Rules for Income, Deductions and Losses
A. Purposes of the Source Rules B. Overview of the Source Rules C. Conduit Treatment for Source Characterization D. “United States” E. Within and Without the United States F. Source of Income
A. Purposes of the Source Rules
B. Overview of the Source Rules
C. Conduit Treatment for Source Characterization
D. “United States”
E. Within and Without the United States
F. Source of Income
1. Income from Capital
a. Interest b. Dividends
a. Interest
b. Dividends
2. Compensation for Personal Services
a. General Rule b. Within the United States c. Nonresident Alien de Minimis Rule d. Special Rule for Nonresident Aliens Engaged in Transportation Services e. Characterization f. Apportionment of Ambulatory Services
a. General Rule
b. Within the United States
c. Nonresident Alien de Minimis Rule
d. Special Rule for Nonresident Aliens Engaged in Transportation Services
e. Characterization
f. Apportionment of Ambulatory Services
3. Rents and Royalties
a. General Rule b. Characterization c. Immovable Property d. Movable Property e. Intangible Property f. Portable Royalties
b. Characterization
c. Immovable Property
d. Movable Property
e. Intangible Property
f. Portable Royalties
4. Disposition of Interests in Real Property 5. Sale or Exchange of Personal Property
4. Disposition of Interests in Real Property
5. Sale or Exchange of Personal Property
a. General Rule b. Resident and Nonresident c. Sale of Inventory Property d. Depreciable Personal Property e. Intangible Assets f. Stock of Affiliates – Gain on Sale g. Special Rules for Sales Through Offices or Fixed Places of Business h. Catchall Rule for Gain from Sale of Certain Stock or Intangibles, and from Certain Liquidations i. Natural Resources Income
b. Resident and Nonresident
c. Sale of Inventory Property
d. Depreciable Personal Property
e. Intangible Assets
f. Stock of Affiliates – Gain on Sale
g. Special Rules for Sales Through Offices or Fixed Places of Business
h. Catchall Rule for Gain from Sale of Certain Stock or Intangibles, and from Certain Liquidations
i. Natural Resources Income
6. Insurance Underwriting Income 7. Certain Transportation Income 8. Space and Certain Ocean Activity Income 9. International Communications Income 10. Foreign Currency Transactions 11. Notional Principal Contracts 12. Securities Lending Transactions 13. Scholarships, Fellowship Grants, Grants, Prizes and Awards 14. Transactions Involving the Transfer of Computer Programs 15. REMIC Inducement Fees 16. None of the Above: Decisional Source Rules
6. Insurance Underwriting Income
7. Certain Transportation Income
8. Space and Certain Ocean Activity Income
9. International Communications Income
10. Foreign Currency Transactions
11. Notional Principal Contracts
12. Securities Lending Transactions
13. Scholarships, Fellowship Grants, Grants, Prizes and Awards
14. Transactions Involving the Transfer of Computer Programs
15. REMIC Inducement Fees
16. None of the Above: Decisional Source Rules
G. Source of Taxable Income
1. Introduction 2. Attribution of Deductions to Gross Income 3. Terminology 4. Mechanics 5. General Rules
2. Attribution of Deductions to Gross Income
3. Terminology
4. Mechanics
5. General Rules
a. Allocation b. Apportionment c. Consistency d. Allocation of Deductions to Nonexistent Gross Income e. Treaties f. Affiliated Groups
a. Allocation
b. Apportionment
c. Consistency
d. Allocation of Deductions to Nonexistent Gross Income
e. Treaties
f. Affiliated Groups
6. Treatment of Specific Deductions
a. Interest b. Research and Development Deductions c. Stewardship Expenses d. Legal and Accounting Fees e. Income Taxes f. Charitable Contributions
b. Research and Development Deductions
c. Stewardship Expenses
d. Legal and Accounting Fees
e. Income Taxes
f. Charitable Contributions
H. Allocation/Apportionment of Losses
1. Dispositions of Property
a. Losses on the Disposition of Personal Property Other than Stock b. Allocation of Losses to Foreign Tax Credit Baskets c. Allocation of Partnership Losses d. Losses on the Sale of Depreciable Personal Property e. Losses on the Sale of Bonds f. Losses on the Sale of Stock g. Dividend Recapture h. Anti-Abuse Rule Regarding Built-in Losses i. Matching Rule
a. Losses on the Disposition of Personal Property Other than Stock
b. Allocation of Losses to Foreign Tax Credit Baskets
c. Allocation of Partnership Losses
d. Losses on the Sale of Depreciable Personal Property
e. Losses on the Sale of Bonds
f. Losses on the Sale of Stock
g. Dividend Recapture
h. Anti-Abuse Rule Regarding Built-in Losses
i. Matching Rule
2. Net Operating Loss Deduction
¶110.06. Foreign Tax Credit
A. Introduction B. Taxpayers Entitled to the Credit
B. Taxpayers Entitled to the Credit
1. In General 2. Special Situations
1. In General
2. Special Situations
a. Similar Credit Requirement b. Nonresident Spouse Election c. Joint Returns d. Partners e. S Corporations and Shareholders f. Trusts and Estates g. Regulated Investment Companies h. Affiliated Groups i. Taxes Paid by an Agent or Withheld j. Joint Liability for Foreign Tax k. Creditability Established by Treaty
a. Similar Credit Requirement
b. Nonresident Spouse Election
c. Joint Returns
d. Partners
e. S Corporations and Shareholders
f. Trusts and Estates
g. Regulated Investment Companies
h. Affiliated Groups
i. Taxes Paid by an Agent or Withheld
j. Joint Liability for Foreign Tax
k. Creditability Established by Treaty
C. Election of the Credit
1. In General 2. Credit vs. Deduction
2. Credit vs. Deduction
D. Accounting for the Credit
1. Election to Use Accrual Method 2. Year of the Credit 3. Foreign Taxes Paid in Foreign Currency 4. Later Adjustments to Foreign Taxes Accrued
1. Election to Use Accrual Method
2. Year of the Credit
3. Foreign Taxes Paid in Foreign Currency
4. Later Adjustments to Foreign Taxes Accrued
E. U.S. Taxes Available for Foreign Tax Offset F. Creditable Foreign Taxes
E. U.S. Taxes Available for Foreign Tax Offset
F. Creditable Foreign Taxes
1. Introduction 2. A “Tax” 3. An “Income Tax” 4. An Income Tax Levied by a Foreign Country 5. Multiple Foreign Levies 6. A Tax in Lieu of an Income Tax Levied by a Foreign Country 7. Holding Period for Stock Subject to Withholding Taxes
2. A “Tax”
3. An “Income Tax”
4. An Income Tax Levied by a Foreign Country
5. Multiple Foreign Levies
6. A Tax in Lieu of an Income Tax Levied by a Foreign Country
7. Holding Period for Stock Subject to Withholding Taxes
G. Mechanics of the Foreign Tax Credit
1. Taxes Paid Directly 2. The Indirect Credit Associated with Dividends
1. Taxes Paid Directly
2. The Indirect Credit Associated with Dividends
a. Overview b. The Corporations Involved: Domestic and Foreign c. Stock Ownership in the Foreign Subsidiary d. Distributions That Qualify as Dividends e. Chronological Source of Dividends for Foreign Tax Credit Purposes f. Lower-Tier Distributions g. Gross-Up of Taxes Deemed Paid h. Treatment of Deficits in Foreign Earnings i. Currency Translation for Foreign Taxes j. Foreign Tax Redeterminations
a. Overview
b. The Corporations Involved: Domestic and Foreign
c. Stock Ownership in the Foreign Subsidiary
d. Distributions That Qualify as Dividends
e. Chronological Source of Dividends for Foreign Tax Credit Purposes
f. Lower-Tier Distributions
g. Gross-Up of Taxes Deemed Paid
h. Treatment of Deficits in Foreign Earnings
i. Currency Translation for Foreign Taxes
j. Foreign Tax Redeterminations
H. Special Rules for Nonresident Alien Individuals and Foreign Corporations I. Limitations on the Foreign Tax Credit
H. Special Rules for Nonresident Alien Individuals and Foreign Corporations
I. Limitations on the Foreign Tax Credit
1. Overview 2. Rules of Application
1. Overview
2. Rules of Application
a. General b. Taxable Income for Limitation Purposes c. Separate Category Limitations d. Attribution of Deductions to Baskets e. Treatment of Foreign Capital Gain or Loss f. Attribution of Foreign Taxes to Baskets g. Treatment of Losses for Foreign Tax Credit Purposes h. Unused Credit Carryovers i. Special Foreign Tax Credit Source Rules for U.S.-Owned Foreign Corporations j. Special Rules for Mineral Income k. Consolidated Return Treatment
a. General
b. Taxable Income for Limitation Purposes
c. Separate Category Limitations
d. Attribution of Deductions to Baskets
e. Treatment of Foreign Capital Gain or Loss
f. Attribution of Foreign Taxes to Baskets
g. Treatment of Losses for Foreign Tax Credit Purposes
h. Unused Credit Carryovers
i. Special Foreign Tax Credit Source Rules for U.S.-Owned Foreign Corporations
j. Special Rules for Mineral Income
k. Consolidated Return Treatment
J. Subpart F Income of U.S. Shareholders K. Reduction of Credit for Foreign Boycott Participation L. Denial of Credit for Inimical Country Taxes M. Other Rules
J. Subpart F Income of U.S. Shareholders
K. Reduction of Credit for Foreign Boycott Participation
L. Denial of Credit for Inimical Country Taxes
M. Other Rules
1. Proof of Creditable Taxes 2. Redetermination of Credit to Correct Later Adjustments 3. Statutes of Limitations 4. Economic Substance Requirement and Anti-Abuse Rules
1. Proof of Creditable Taxes
2. Redetermination of Credit to Correct Later Adjustments
3. Statutes of Limitations
4. Economic Substance Requirement and Anti-Abuse Rules
N. Alternative Minimum Tax Foreign Tax Credit
¶120. Foreign Persons’ U.S. Activities
¶120.01. Analyzing Foreign Persons’ U.S. Activities
A. Form of Analysis B. Foreign Persons
A. Form of Analysis
B. Foreign Persons
¶120.02 Taxation of Foreign Persons’ Income Effectively Connected with a U.S. Trade or Business
A. Form of Analysis B. U.S. Trade or Business Activity
B. U.S. Trade or Business Activity
1. General Concepts 2. Specific Applications
1. General Concepts
2. Specific Applications
a. Manufacturing b. Sale of Goods c. Personal Services d. Trading in Securities and Commodities e. Real Property f. Banking, Financing and Similar Businesses g. Shepherding Activities
a. Manufacturing
b. Sale of Goods
c. Personal Services
d. Trading in Securities and Commodities
e. Real Property
f. Banking, Financing and Similar Businesses
g. Shepherding Activities
3. Imputation of Trade or Business Activity from One Person to Another
a. Agents and Employees b. Partnerships, Trusts and Estates
a. Agents and Employees
b. Partnerships, Trusts and Estates
4. Trade or Business and Permanent Establishment
C. Trade or Business Activity Within the United States D. Trade or Business Activity Within the United States During the Taxable Year E. Income Effectively Connected with the Conduct of U.S. Trade or Business
C. Trade or Business Activity Within the United States
D. Trade or Business Activity Within the United States During the Taxable Year
E. Income Effectively Connected with the Conduct of U.S. Trade or Business
1. Overview 2. U.S. Source Effectively Connected Income
2. U.S. Source Effectively Connected Income
a. Source of Income b. General Tax Pattern c. Starting Point for Determining Effectively Connected Income d. Periodical Income and Capital Gain e. U.S. Source Income Other Than Periodical Income and Capital Gain
a. Source of Income
b. General Tax Pattern
c. Starting Point for Determining Effectively Connected Income
d. Periodical Income and Capital Gain
e. U.S. Source Income Other Than Periodical Income and Capital Gain
3. Foreign Source Effectively Connected Income
a. Overview b. Items of Income c. U.S. Office or Fixed Place of Business d. Deferred Payments
b. Items of Income
c. U.S. Office or Fixed Place of Business
d. Deferred Payments
4. Special Rules Relating to Effectively Connected Income
a. Matching and Mismatching of Taxable Years b. Students and Trainees c. Real Property Income Election d. Possessions Banks’ Interest on U.S. Obligations
a. Matching and Mismatching of Taxable Years
b. Students and Trainees
c. Real Property Income Election
d. Possessions Banks’ Interest on U.S. Obligations
5. Effectively Connected Taxable Income
a. In General b. Interest Deduction for Foreign Corporations c. Return Requirement
a. In General
b. Interest Deduction for Foreign Corporations
c. Return Requirement
F. Branch Level Taxes on U.S. Trades or Businesses
a. Branch Profits Tax b. Coordination with the Second Level Dividend Withholding Tax c. Tax on Interest Paid or Deducted
a. Branch Profits Tax
b. Coordination with the Second Level Dividend Withholding Tax
c. Tax on Interest Paid or Deducted
2. Taxpayers Subject to the Branch Level Tax
a. In General b. Possessions Corporations
b. Possessions Corporations
3. Branch Profits Tax
a. In General b. Effectively Connected Income c. Effectively Connected Earnings and Profits (ECEP) d. Dividend Equivalent Amount (DEA) e. Calculation and Payment of Tax
b. Effectively Connected Income
c. Effectively Connected Earnings and Profits (ECEP)
d. Dividend Equivalent Amount (DEA)
e. Calculation and Payment of Tax
4. Coordination with Income Tax Treaties 5. Branch Profits Tax in Business Terminations and Restructurings
4. Coordination with Income Tax Treaties
5. Branch Profits Tax in Business Terminations and Restructurings
a. Business Terminations b. Corporate Restructurings
a. Business Terminations
b. Corporate Restructurings
6. Coordination with Second Level Dividend Withholding Tax 7. Branch Level Tax on Interest Paid or Deducted
6. Coordination with Second Level Dividend Withholding Tax
7. Branch Level Tax on Interest Paid or Deducted
a. In General b. Calculating the Tax Base c. Rate and Collection of Branch Level Interest Tax
b. Calculating the Tax Base
c. Rate and Collection of Branch Level Interest Tax
¶120.03. Taxation of Foreign Persons’ Income Not Effectively Connected with a U.S. Trade or Business
A. Overview B. Income Not Effectively Connected with a U.S. Trade or Business
A. Overview
B. Income Not Effectively Connected with a U.S. Trade or Business
1. Gain from the Sale of Capital Assets 2. Interest
1. Gain from the Sale of Capital Assets
2. Interest
a. General b. Original Issue Discount c. Portfolio Investment Interest d. Interest on Deposits e. Interest Paid by U.S. Business of a Foreign Corporation f. Conduit Financing Arrangements
b. Original Issue Discount
c. Portfolio Investment Interest
d. Interest on Deposits
e. Interest Paid by U.S. Business of a Foreign Corporation
f. Conduit Financing Arrangements
3. Dividends
a. General b. Dividends from an 80-20 Corporation c. Dividends of Foreign Corporations
b. Dividends from an 80-20 Corporation
c. Dividends of Foreign Corporations
4. Rent 5. Certain Salary and Other Compensation for Personal Services 6. Annuities 7. Pensions 8. Social Security Benefits 9. Timber, Coal and Iron Ore Disposal Payments 10. Contingent Gain from Certain Intangibles 11. Residual REMIC Income 12. Gamble Winnings 13. Miscellaneous Fixed or Determinable Income
4. Rent
5. Certain Salary and Other Compensation for Personal Services
6. Annuities
7. Pensions
8. Social Security Benefits
9. Timber, Coal and Iron Ore Disposal Payments
10. Contingent Gain from Certain Intangibles
11. Residual REMIC Income
12. Gamble Winnings
13. Miscellaneous Fixed or Determinable Income
C. U.S. Source Gain or Loss from the Disposition of Capital Assets
1. Foreign Corporations 2. Nonresident Alien Individuals
1. Foreign Corporations
2. Nonresident Alien Individuals
a. General b. Nonresident Aliens Present in This Country 183 Days or More c. Treaty Provisions
b. Nonresident Aliens Present in This Country 183 Days or More
c. Treaty Provisions
¶120.04. Exempt Income
A. In General B. Certain Annuities Received Under Qualified Plans C. Certain Gambling Winnings D. Income from International Operation of Ships and Aircraft E. Income from Railroad Rolling Stock F. Income from Communications Satellites G. Compensation Received by Participants in Training or Exchange Program H. Certain U.S. Savings Bond Income I. Income Exempt Under Treaty J. Exempt Income of Foreign Governments and International Organizations K. Exempt Income of Employees of Foreign Governments and International Organizations L. Exempt Income of Foreign Central Bank of Issue
A. In General
B. Certain Annuities Received Under Qualified Plans
C. Certain Gambling Winnings
D. Income from International Operation of Ships and Aircraft
E. Income from Railroad Rolling Stock
F. Income from Communications Satellites
G. Compensation Received by Participants in Training or Exchange Program
H. Certain U.S. Savings Bond Income
I. Income Exempt Under Treaty
J. Exempt Income of Foreign Governments and International Organizations
K. Exempt Income of Employees of Foreign Governments and International Organizations
L. Exempt Income of Foreign Central Bank of Issue
¶120.05. Income from Disposition of an Interest in U.S. Real Property
A. Overview B. Foreign Persons Affected C. U.S. Real Property Interests
B. Foreign Persons Affected
C. U.S. Real Property Interests
1. In General 2. Real Property 3. Real Property Interests
2. Real Property
3. Real Property Interests
a. In General b. Direct Interests c. Aggregation of Interests d. Ownership Through a Corporation e. U.S. Real Property Holding Corporations
b. Direct Interests
c. Aggregation of Interests
d. Ownership Through a Corporation
e. U.S. Real Property Holding Corporations
D. Dispositions of U.S. Real Property Interests by Foreign Persons
1. Overview 2. Sales of U.S. Real Property Interests
2. Sales of U.S. Real Property Interests
a. General b. Installment Sales
b. Installment Sales
3. Sale of Interest in a Partnership, Trust or Estate 4. Sale of U.S. Real Property Interest by a Partnership, Trust or Estate 5. Certain Transactions Involving Foreign Corporations
3. Sale of Interest in a Partnership, Trust or Estate
4. Sale of U.S. Real Property Interest by a Partnership, Trust or Estate
5. Certain Transactions Involving Foreign Corporations
a. Contributions to Capital b. U.S. Real Property Interests Distributed by Foreign Corporations
a. Contributions to Capital
b. U.S. Real Property Interests Distributed by Foreign Corporations
6. Certain Distributions by U.S. Corporations to Foreign Shareholders
a. Overview b. Basis Limitation on In-Kind Dividend Distribution c. Distributions Treated as Taxable Exchanges of Stock d. Certain Liquidations of Controlled U.S. Real Property Holding Corporations
b. Basis Limitation on In-Kind Dividend Distribution
c. Distributions Treated as Taxable Exchanges of Stock
d. Certain Liquidations of Controlled U.S. Real Property Holding Corporations
7. Coordination with General Code Nonrecognition Provisions
a. Overview b. Nonrecognition Exchanges
b. Nonrecognition Exchanges
8. Election by Foreign Corporation to Be Treated as a Domestic Corporation 9. Real Estate Investment Trusts and Regulated Investment Companies 10. Application of Tax Treaties to U.S. Real Property Interests 11. Real Property Interests in the Virgin Islands
8. Election by Foreign Corporation to Be Treated as a Domestic Corporation
9. Real Estate Investment Trusts and Regulated Investment Companies
10. Application of Tax Treaties to U.S. Real Property Interests
11. Real Property Interests in the Virgin Islands
E. Computation of Gain or Loss from the Disposition of U.S. Real Property Interests F. Computation of Tax and Rates G. Special Application of Branch Profits Tax H. Withholding Tax on Disposition Payments to Foreign U.S. Real Property Interest Holders
E. Computation of Gain or Loss from the Disposition of U.S. Real Property Interests
F. Computation of Tax and Rates
G. Special Application of Branch Profits Tax
H. Withholding Tax on Disposition Payments to Foreign U.S. Real Property Interest Holders
¶120.06. Withholding Tax at Source
A. Overview B. Withholding Agent
B. Withholding Agent
1. Described 2. Liability for Tax
1. Described
2. Liability for Tax
C. Persons Subject to Withholding D. Income Subject to Withholding
C. Persons Subject to Withholding
D. Income Subject to Withholding
1. In General 2. Fixed or Determinable Income 3. Exceptions and Special Rules
2. Fixed or Determinable Income
3. Exceptions and Special Rules
a. Effectively Connected Income: Personal Services b. Certain Corporate Distributions c. Certain Interest Payments d. Undue Administrative Burden e. Qualified Plan Annuities f. Amount of Certain Taxable Gain Unknown g. Certain Gambling Winnings h. Income Owned by Foreign Governments and International Organizations i. Interest Owned by Foreign Central Banks j. Interest on Tax-Free Covenant Bonds k. Payments to Possessions Corporations l. Certain Insurance Premiums m. Payments to Foreign Tax-Exempt Organizations and Private Foundations n. Dividends Paid by RICs o. Reduced Withholding Rate for Scholarship Payments p. Treaty Exemptions in General q. Statement of Exemption from Withholding r. Personal Exemptions
a. Effectively Connected Income: Personal Services
b. Certain Corporate Distributions
c. Certain Interest Payments
d. Undue Administrative Burden
e. Qualified Plan Annuities
f. Amount of Certain Taxable Gain Unknown
g. Certain Gambling Winnings
h. Income Owned by Foreign Governments and International Organizations
i. Interest Owned by Foreign Central Banks
j. Interest on Tax-Free Covenant Bonds
k. Payments to Possessions Corporations
l. Certain Insurance Premiums
m. Payments to Foreign Tax-Exempt Organizations and Private Foundations
n. Dividends Paid by RICs
o. Reduced Withholding Rate for Scholarship Payments
p. Treaty Exemptions in General
q. Statement of Exemption from Withholding
r. Personal Exemptions
E. Partnerships
1. General 2. Withholding Tax on Foreign Partner’s Share of Partnership Effectively Connected Income
1. General
2. Withholding Tax on Foreign Partner’s Share of Partnership Effectively Connected Income
a. General b. Identification of Foreign Partners c. Effectively Connected Taxable Income d. Amount of Tax e. Effect on Partners’ Tax Liabilities f. Publicly Traded Partnerships
b. Identification of Foreign Partners
c. Effectively Connected Taxable Income
d. Amount of Tax
e. Effect on Partners’ Tax Liabilities
f. Publicly Traded Partnerships
F. Trusts and Estates
1. General 2. Foreign Grantor Trust
2. Foreign Grantor Trust
G. Withholding on Gain from the Disposition of a U.S. Real Property Interes 1. Overview
G. Withholding on Gain from the Disposition of a U.S. Real Property Interes
2. Determination of Amount to Be Withheld 3. Cases in Which No Withholding Is Required
2. Determination of Amount to Be Withheld
3. Cases in Which No Withholding Is Required
a. No Tax Due b. Certain Options c. General Exemptions
a. No Tax Due
b. Certain Options
c. General Exemptions
4. Installment Payments 5. Withholding on Distributions by Entities
4. Installment Payments
5. Withholding on Distributions by Entities
a. Dispositions of U.S. Real Property Interests by Domestic Partnerships, Trusts and Estates b. Taxable Distributions by Domestic or Foreign Partnerships, Trusts or Estates c. Disposition of an Interest in a Partnership, Trust or Estate d. Certain Distributions by Foreign Corporations e. Distributions by a U.S. Real Property Holding Corporation
a. Dispositions of U.S. Real Property Interests by Domestic Partnerships, Trusts and Estates
b. Taxable Distributions by Domestic or Foreign Partnerships, Trusts or Estates
c. Disposition of an Interest in a Partnership, Trust or Estate
d. Certain Distributions by Foreign Corporations
e. Distributions by a U.S. Real Property Holding Corporation
6. Qualifying Statements and Withholding Certificates
a. Qualifying Statements b. Withholding Certificate
a. Qualifying Statements
b. Withholding Certificate
7. Withholding by Real Estate Investment Trusts and Publicly Traded Partnerships and Trusts 8. Treatment of Agents and Closing Attorneys/Title Companies
7. Withholding by Real Estate Investment Trusts and Publicly Traded Partnerships and Trusts
8. Treatment of Agents and Closing Attorneys/Title Companies
H. Foreign Person’s Treatment of Tax Withheld I. Foreign Persons Claiming Exemption from Withholding J. Backup Withholding K. 1997 Final Withholding Regulations
H. Foreign Person’s Treatment of Tax Withheld
I. Foreign Persons Claiming Exemption from Withholding
J. Backup Withholding
K. 1997 Final Withholding Regulations
¶120.07. Overview of Treaty Provisions Applicable to Foreign Persons
A. Residence B. Permanent Establishment C. Passive Investment Income D. Certain Compensation E. Dispute Resolution F. Information Exchange G. Nondiscrimination Clauses H. Savings Clauses
A. Residence
B. Permanent Establishment
C. Passive Investment Income
D. Certain Compensation
E. Dispute Resolution
F. Information Exchange
G. Nondiscrimination Clauses
H. Savings Clauses
¶120.08. Summary of U.S. Taxation of Foreign Persons
A. Taxation of Resident Alien Individuals B. Taxation of Nonresident Alien Individuals
A. Taxation of Resident Alien Individuals
B. Taxation of Nonresident Alien Individuals
1. In General 2. Computation of Taxable Income 3. Tax Rates 4. Minimum Tax 5. Credits Against Tax 6. Return Required 7. Miscellaneous
2. Computation of Taxable Income
3. Tax Rates
4. Minimum Tax
5. Credits Against Tax
6. Return Required
7. Miscellaneous
a. Resident Alien Election: Joint Return b. Community Property Income c. Social Security Benefits d. Self-Employment Taxes e. Dual Status Aliens
a. Resident Alien Election: Joint Return
b. Community Property Income
c. Social Security Benefits
d. Self-Employment Taxes
e. Dual Status Aliens
C. Alien Resident of Certain U.S. Possessions D. Taxation of Certain Former U.S. Citizens and Long-Term Residents
C. Alien Resident of Certain U.S. Possessions
D. Taxation of Certain Former U.S. Citizens and Long-Term Residents
1. General Rule 2. Expatriations After June 16, 2008 3. Expatriations Before June 17, 2008
1. General Rule
2. Expatriations After June 16, 2008
3. Expatriations Before June 17, 2008
a. Determining Whether Principal Purpose of Expatriation Was U.S. Tax Avoidance – Expatriations Before June 4, 2004 b. Objective Income Tax/Asset Test – Expatriations After June 3, 2004 and Before June 17, 2008
a. Determining Whether Principal Purpose of Expatriation Was U.S. Tax Avoidance – Expatriations Before June 4, 2004
b. Objective Income Tax/Asset Test – Expatriations After June 3, 2004 and Before June 17, 2008
4. Modified Tax Rules
a. Expatriations After June 16, 2008 b. Expatriations Before June 17, 2008
a. Expatriations After June 16, 2008
b. Expatriations Before June 17, 2008
5. Reporting Requirements
a. Reporting upon Expatriation b. Annual Reporting
a. Reporting upon Expatriation
b. Annual Reporting
E. Taxation of Foreign Corporations
1. In General 2. Computation of Taxable Income 3. Tax Rates 4. Minimum Tax 5. Credits Against Tax 6. Return Required: Consolidated Returns 7. Branch Profits Tax 8. Accumulated Earnings Tax
6. Return Required: Consolidated Returns
7. Branch Profits Tax
8. Accumulated Earnings Tax
a. In General b. U.S. Owned Foreign Corporations
b. U.S. Owned Foreign Corporations
9. Personal Holding Company Tax 10. Related Party Factoring Income
9. Personal Holding Company Tax
10. Related Party Factoring Income
F. Foreign Partners and Partnerships
1. Foreign Partnerships
a. General b. Credit for Foreign Taxes c. Partnership Returns d. Withholding
b. Credit for Foreign Taxes
c. Partnership Returns
d. Withholding
2. Treatment of Foreign Partners
G. Foreign Trusts, Estates and Beneficiaries
1. General 2. Foreign Trusts 3. Foreign Grantor Trusts 4. Foreign Estates 5. Foreign Beneficiaries
2. Foreign Trusts
3. Foreign Grantor Trusts
4. Foreign Estates
5. Foreign Beneficiaries
H. Foreign Insurance Companies 1. In General 2. Computation of Tax
H. Foreign Insurance Companies
1. In General 2. Computation of Tax
2. Computation of Tax
I. Foreign Governments and International Organizations J. Foreign Exempt Organizations K. Tax on Gross Transportation Income
I. Foreign Governments and International Organizations
J. Foreign Exempt Organizations
K. Tax on Gross Transportation Income
¶130. U.S. Persons’ Foreign Activities
¶130.01. Taxation of Worldwide Income
¶130.02. Foreign Earned Income and Housing Cost Exclusions
A. Overview B. Basic Qualifications C. Foreign Tax Home 1. Bona Fide Resident Test a. Complete Taxable Year b. Exception
B. Basic Qualifications
C. Foreign Tax Home
1. Bona Fide Resident Test
a. Complete Taxable Year b. Exception
a. Complete Taxable Year
b. Exception
c. Break in Residence
2. Foreign Presence Test a. 12-Month Period b. 330 Full Days Test D. Excludable Foreign Earned Income 1. General Rules 2. Excludable Amount a. Part-Year Proration b. Treatment of Income Not Received in Same Year as Earned c. Excludable Income of Married Couples
2. Foreign Presence Test
a. 12-Month Period b. 330 Full Days Test
a. 12-Month Period
b. 330 Full Days Test
D. Excludable Foreign Earned Income
1. General Rules
2. Excludable Amount
a. Part-Year Proration b. Treatment of Income Not Received in Same Year as Earned c. Excludable Income of Married Couples
a. Part-Year Proration
b. Treatment of Income Not Received in Same Year as Earned
c. Excludable Income of Married Couples
3. Treatment of Deductions Attributable to Earned Income 4. Disallowance of Foreign Tax Credit E. Treatment of Foreign Housing Costs F. Electing Exclusions G. Filing Returns While Foreign Status Is in Doubt H. Related Matters
3. Treatment of Deductions Attributable to Earned Income 4. Disallowance of Foreign Tax Credit
3. Treatment of Deductions Attributable to Earned Income
4. Disallowance of Foreign Tax Credit
E. Treatment of Foreign Housing Costs
F. Electing Exclusions
G. Filing Returns While Foreign Status Is in Doubt
H. Related Matters
1. Moving Expenses 2. Meals and Lodging Costs 3. U.S. Wage Taxes 4. Self-Employment Tax 5. Employees of U.S. Government and Its Agencies I. Illustrative Example
1. Moving Expenses 2. Meals and Lodging Costs 3. U.S. Wage Taxes 4. Self-Employment Tax 5. Employees of U.S. Government and Its Agencies
1. Moving Expenses
2. Meals and Lodging Costs
3. U.S. Wage Taxes
4. Self-Employment Tax
5. Employees of U.S. Government and Its Agencies
I. Illustrative Example
¶130.03. Foreign Tax Credit
¶130.04. Tax Avoidance Foreign Corporations Owned by U.S. Persons
A. Foreign Personal Holding Companies B. Controlled Foreign Corporations 1. U.S. Shareholders’ Current Income Inclusion 2. Gain on Sale or Liquidation 3. Temporary Dividends Received Deduction C. Passive Foreign Investment Companies D. Disposition of Stock in Foreign Investment Companies E. Accumulated Earnings Tax on Foreign Corporations
A. Foreign Personal Holding Companies
B. Controlled Foreign Corporations
1. U.S. Shareholders’ Current Income Inclusion 2. Gain on Sale or Liquidation 3. Temporary Dividends Received Deduction
1. U.S. Shareholders’ Current Income Inclusion
2. Gain on Sale or Liquidation
3. Temporary Dividends Received Deduction
C. Passive Foreign Investment Companies
D. Disposition of Stock in Foreign Investment Companies
E. Accumulated Earnings Tax on Foreign Corporations
¶130.05. Tax Incentive Devices for U.S. Persons’ Foreign Operations
A. Foreign Sales Corporations B. Extraterritorial Income Exclusion C. Interest Charge Domestic Sales Corporations
A. Foreign Sales Corporations
B. Extraterritorial Income Exclusion
C. Interest Charge Domestic Sales Corporations
¶130.06. Commercial Transactions Between Commonly Controlled U.S. and Foreign Persons
¶130.07. Organization of Foreign Corporations and Other Outbound Transfers
A. Organization of Foreign Corporations: Section 367 B. Other Outbound Transfers 1. Transfers on or After August 5, 1997, to Noncorporate Foreign Persons 2. Deferral by Agreement
A. Organization of Foreign Corporations: Section 367
B. Other Outbound Transfers
1. Transfers on or After August 5, 1997, to Noncorporate Foreign Persons 2. Deferral by Agreement
1. Transfers on or After August 5, 1997, to Noncorporate Foreign Persons
2. Deferral by Agreement
a. Transfers by U.S. Persons of Foreign Stock or Securities to Foreign Corporations b. Transfers by U.S. Persons of U.S. Stock or Securities to Foreign Corporations c. Terms and Conditions of IRS Gain Recognition Agreements
a. Transfers by U.S. Persons of Foreign Stock or Securities to Foreign Corporations
b. Transfers by U.S. Persons of U.S. Stock or Securities to Foreign Corporations
c. Terms and Conditions of IRS Gain Recognition Agreements
3. Limitations on Expatriated Entities
¶130.08. Liquidations of Foreign Corporations and Other Inbound Transfers
¶130.09. Reorganizations of Foreign Corporations and Other Foreign-to-Foreign Transfers
¶130.10. Other Transfers and Similar Events Involving Foreign Persons
A. Indirect Transfers in Domestic Corporate Reorganizations B. Termination of Foreign Corporation’s Election to Be Treated as a Domestic Corporation C. Transfers Involving Partnerships D. Transfers Involving Trusts and Estates
A. Indirect Transfers in Domestic Corporate Reorganizations
B. Termination of Foreign Corporation’s Election to Be Treated as a Domestic Corporation
C. Transfers Involving Partnerships
D. Transfers Involving Trusts and Estates
¶130.11. Foreign Currency Transactions and Translation of Earnings
A. In General B. Transactions in Nonfunctional Currency C. Translation of Income and Foreign Taxes Paid D. Blocked Foreign Income
B. Transactions in Nonfunctional Currency
C. Translation of Income and Foreign Taxes Paid
D. Blocked Foreign Income
¶130.12. Restrictions on Foreign Activities
A. Boycott Participation Penalties B. Foreign Bribes and Kickbacks
A. Boycott Participation Penalties
B. Foreign Bribes and Kickbacks
¶140. U.S. Income Tax Treaties
¶140.01. The U.S. Treaty System
A. Introduction 1. Purposes of Treaties 2. Negotiation and Ratification of Income Tax Treaties a. The Negotiation Process b. Ratification c. Changes in Treaties 3. U.S. Statutory Law vs. Treaty Provisions a. Electing Out of Treaty Application b. Inconsistent Code and Treaty Provisions c. Disclosing Treaty-Based Return Positions B. Primary Bases for Bilateral Treaties 1. Accommodation Between Source and Residence Methods of Taxation a. Tax Incentives of Investment in the United States b. Tax Incentives for Foreign Investment (Tax Sparing) 2. Elimination of Tax Evasion a. Exchange of Information b. Anti-Treaty Shopping Provisions c. Conduit Financing Arrangements
1. Purposes of Treaties 2. Negotiation and Ratification of Income Tax Treaties
1. Purposes of Treaties
2. Negotiation and Ratification of Income Tax Treaties
a. The Negotiation Process b. Ratification c. Changes in Treaties 3. U.S. Statutory Law vs. Treaty Provisions a. Electing Out of Treaty Application b. Inconsistent Code and Treaty Provisions c. Disclosing Treaty-Based Return Positions
a. The Negotiation Process b. Ratification c. Changes in Treaties
a. The Negotiation Process
b. Ratification
c. Changes in Treaties
3. U.S. Statutory Law vs. Treaty Provisions
a. Electing Out of Treaty Application b. Inconsistent Code and Treaty Provisions c. Disclosing Treaty-Based Return Positions
a. Electing Out of Treaty Application
b. Inconsistent Code and Treaty Provisions
c. Disclosing Treaty-Based Return Positions
B. Primary Bases for Bilateral Treaties
1. Accommodation Between Source and Residence Methods of Taxation a. Tax Incentives of Investment in the United States b. Tax Incentives for Foreign Investment (Tax Sparing) 2. Elimination of Tax Evasion a. Exchange of Information b. Anti-Treaty Shopping Provisions c. Conduit Financing Arrangements
1. Accommodation Between Source and Residence Methods of Taxation
a. Tax Incentives of Investment in the United States
b. Tax Incentives for Foreign Investment (Tax Sparing)
2. Elimination of Tax Evasion
a. Exchange of Information b. Anti-Treaty Shopping Provisions c. Conduit Financing Arrangements
a. Exchange of Information
b. Anti-Treaty Shopping Provisions
c. Conduit Financing Arrangements
¶140.02 Income Tax Treaties: General Application
A. Foreign Persons in the United States 1. Source Based Taxation 2. Business Profits a. Progressive Tax b. Corporate Branch Profits Tax 3. Services Performed in the United States 4. U.S. Real Estate Investments B. U.S. Persons’ Income from Without the United States 1. Non-U.S. Source Investment Income 2. Foreign Business Profits 3. Service Performed Outside the United States 4. U.S. Foreign Tax Credit a. Income Tax Base b. Expense Base c. Creditable Taxes d. Method of Calculation 5. Harmonizing Economic Results with Foreign Imputation Tax Systems
A. Foreign Persons in the United States
1. Source Based Taxation 2. Business Profits a. Progressive Tax b. Corporate Branch Profits Tax 3. Services Performed in the United States 4. U.S. Real Estate Investments
1. Source Based Taxation
2. Business Profits
a. Progressive Tax b. Corporate Branch Profits Tax
a. Progressive Tax
b. Corporate Branch Profits Tax
3. Services Performed in the United States
4. U.S. Real Estate Investments
B. U.S. Persons’ Income from Without the United States
1. Non-U.S. Source Investment Income 2. Foreign Business Profits 3. Service Performed Outside the United States 4. U.S. Foreign Tax Credit a. Income Tax Base b. Expense Base c. Creditable Taxes d. Method of Calculation 5. Harmonizing Economic Results with Foreign Imputation Tax Systems
1. Non-U.S. Source Investment Income
2. Foreign Business Profits
3. Service Performed Outside the United States
4. U.S. Foreign Tax Credit
a. Income Tax Base b. Expense Base c. Creditable Taxes d. Method of Calculation
a. Income Tax Base
b. Expense Base
c. Creditable Taxes
d. Method of Calculation
5. Harmonizing Economic Results with Foreign Imputation Tax Systems
¶140.03. U.S. Model Income Tax Treaty Provisions
¶140.04. Exchange of Information Under Treaties
¶140.05. Caribbean Basis and U.S. Possessions Information Exchange Agreements
¶140.06. Other Tax Agreements
A. Shipping and Aircraft Agreements B. Possessions Tax Implementation Agreements C. Mutual Legal Assistance Agreements
A. Shipping and Aircraft Agreements
B. Possessions Tax Implementation Agreements
C. Mutual Legal Assistance Agreements
¶140.07. Termination of Treaties
¶140.08. Tax Treaty Tables
A. List of U.S. Income Tax Treaties B. Table of Treaty Withholding Rates for Income Other Than Personal Service Income C. Table of Personal Service Income Exempt from Withholding and Income Tax Under Treaties
A. List of U.S. Income Tax Treaties
B. Table of Treaty Withholding Rates for Income Other Than Personal Service Income
C. Table of Personal Service Income Exempt from Withholding and Income Tax Under Treaties
¶140.09. Effect on the Branch Profits Tax
A. Qualified Resident Corporations Not Subject to Branch Profits Tax B. Treaties That Allow Imposition of Branch Profits Tax C. Treaty Prohibition or Limitation of Taxation of Interest Paid by a Branch
A. Qualified Resident Corporations Not Subject to Branch Profits Tax
B. Treaties That Allow Imposition of Branch Profits Tax
C. Treaty Prohibition or Limitation of Taxation of Interest Paid by a Branch
¶140.10. Guidance on Claims for Certain Income Tax Treaty Benefits
¶150. Withholding and Compliance
¶150.01. U.S. Withholding Agent’s Responsibilities
A. Statutory Framework B. Withholding Agent’s Obligation to Withhold C. Establishing Requirement to Withhold D. Establishing Exemptions from Withholding E. Application of Treaties F. Payee Taxpayer Identification Number G. Determination and Payment of Tax by the Withholding Agent
A. Statutory Framework
B. Withholding Agent’s Obligation to Withhold
C. Establishing Requirement to Withhold
D. Establishing Exemptions from Withholding
E. Application of Treaties
F. Payee Taxpayer Identification Number
G. Determination and Payment of Tax by the Withholding Agent
¶150.02. Returns and Information Returns
A. General B. U.S. Persons 1. Individual U.S. Citizens and Resident Aliens a. Individual Income Tax Return: Form 1040 b. Report of Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Foreign Earned Income: Forms 673 and 2555 d. Transfer of Property to Foreign Corporations: Form 926 e. Departing Alien’s Return: Forms 1040C and 2063 f. Certificate of Alien Claiming U.S. Residence: Form 1078 g. Foreign Tax Credit Computation: Form 1116 h. Creation of or Transfers to Certain Foreign Trusts: form 3520 i. Information with Respect to a Foreign Corporation: Form 5471 j. International Boycott Report: Form 5713 k. Ownership Changes in Foreign Partnerships: Form 8865
A. General
B. U.S. Persons
1. Individual U.S. Citizens and Resident Aliens
a. Individual Income Tax Return: Form 1040 b. Report of Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Foreign Earned Income: Forms 673 and 2555 d. Transfer of Property to Foreign Corporations: Form 926 e. Departing Alien’s Return: Forms 1040C and 2063 f. Certificate of Alien Claiming U.S. Residence: Form 1078 g. Foreign Tax Credit Computation: Form 1116 h. Creation of or Transfers to Certain Foreign Trusts: form 3520 i. Information with Respect to a Foreign Corporation: Form 5471 j. International Boycott Report: Form 5713 k. Ownership Changes in Foreign Partnerships: Form 8865
a. Individual Income Tax Return: Form 1040
b. Report of Foreign Bank and Financial Accounts: Form TD F 90-22.1
c. Foreign Earned Income: Forms 673 and 2555
d. Transfer of Property to Foreign Corporations: Form 926
e. Departing Alien’s Return: Forms 1040C and 2063
f. Certificate of Alien Claiming U.S. Residence: Form 1078
g. Foreign Tax Credit Computation: Form 1116
h. Creation of or Transfers to Certain Foreign Trusts: form 3520
i. Information with Respect to a Foreign Corporation: Form 5471
j. International Boycott Report: Form 5713
k. Ownership Changes in Foreign Partnerships: Form 8865
2. U.S. Corporations a. Corporate Return: Form 1120 b. Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Transfers of Property to Foreign Corporations: Form 926 d. Foreign Tax Credit Computations: form 1116 e. Creation of or Transfers to Certain Foreign Trusts: Form 3520 f. Information with Respect to a Foreign Corporation: Form 5471 g. Foreign Owned Corporation Information Return: Form 5472 h. International Boycott Report: Form 5713 i. Ownership Changes in Foreign Partnerships: Form 8865 3. U.S. Partnerships a. Partnership Return: Form 1065 b. Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Transfers of Property to Foreign Corporations: Form 926 d. Creation of or Transfers to Certain Foreign Trusts: Form 3520 e. Information with Respect to a Foreign Corporation: Form 5471 f. International Boycott Report: Form 5713 g. Ownership Changes in Foreign Partnerships: Form 8865 4. U.S. Trust or Estate a. Fiduciary Return: Form 5713 b. Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Transfers of Property to Foreign Corporations: Form 926 d. Foreign Tax Credit Computation: Form 1116 e. Creation of or Transfers to Certain Foreign Trusts: Form 3520 f. Information with Respect to a Foreign Corporation: Form 5471 g. International Boycott Report: Form 5713 h. Ownership Changes in Foreign Partnerships: Form 8865 5. Interest Charge Domestic International Sales Corporation a. IC-Disc Return: Form 1120-IC-DISC b. Election to Be Treated as an Interest Charge Domestic International Sales Corporation: Form 4876-A c. International Boycott Report: Form 5713 d. Shareholder Report of Interest Charge: Form 8404 6. Electing Possessions Corporation 7. Withholding Agent’s Returns a. General: Forms 1042 and 1042S b. Establishing Exemptions from General Withholding c. Dispositions of U.S. Real Property Interests: Forms 8288, 8288-A and 8288-B d. Partnership Withholding on Effectively Connected Income e. Exemption from Withholding on Income of Foreign Governments and International Organizations: Form W-8EXP 8. Currency Transaction Reports 9. License to Collect Foreign Items
2. U.S. Corporations
a. Corporate Return: Form 1120 b. Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Transfers of Property to Foreign Corporations: Form 926 d. Foreign Tax Credit Computations: form 1116 e. Creation of or Transfers to Certain Foreign Trusts: Form 3520 f. Information with Respect to a Foreign Corporation: Form 5471 g. Foreign Owned Corporation Information Return: Form 5472 h. International Boycott Report: Form 5713 i. Ownership Changes in Foreign Partnerships: Form 8865
a. Corporate Return: Form 1120
b. Foreign Bank and Financial Accounts: Form TD F 90-22.1
c. Transfers of Property to Foreign Corporations: Form 926
d. Foreign Tax Credit Computations: form 1116
e. Creation of or Transfers to Certain Foreign Trusts: Form 3520
f. Information with Respect to a Foreign Corporation: Form 5471
g. Foreign Owned Corporation Information Return: Form 5472
h. International Boycott Report: Form 5713
i. Ownership Changes in Foreign Partnerships: Form 8865
3. U.S. Partnerships
a. Partnership Return: Form 1065 b. Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Transfers of Property to Foreign Corporations: Form 926 d. Creation of or Transfers to Certain Foreign Trusts: Form 3520 e. Information with Respect to a Foreign Corporation: Form 5471 f. International Boycott Report: Form 5713 g. Ownership Changes in Foreign Partnerships: Form 8865
a. Partnership Return: Form 1065
d. Creation of or Transfers to Certain Foreign Trusts: Form 3520
e. Information with Respect to a Foreign Corporation: Form 5471
f. International Boycott Report: Form 5713
g. Ownership Changes in Foreign Partnerships: Form 8865
4. U.S. Trust or Estate
a. Fiduciary Return: Form 5713 b. Foreign Bank and Financial Accounts: Form TD F 90-22.1 c. Transfers of Property to Foreign Corporations: Form 926 d. Foreign Tax Credit Computation: Form 1116 e. Creation of or Transfers to Certain Foreign Trusts: Form 3520 f. Information with Respect to a Foreign Corporation: Form 5471 g. International Boycott Report: Form 5713 h. Ownership Changes in Foreign Partnerships: Form 8865
a. Fiduciary Return: Form 5713
d. Foreign Tax Credit Computation: Form 1116
g. International Boycott Report: Form 5713
h. Ownership Changes in Foreign Partnerships: Form 8865
5. Interest Charge Domestic International Sales Corporation
a. IC-Disc Return: Form 1120-IC-DISC b. Election to Be Treated as an Interest Charge Domestic International Sales Corporation: Form 4876-A c. International Boycott Report: Form 5713 d. Shareholder Report of Interest Charge: Form 8404
a. IC-Disc Return: Form 1120-IC-DISC
b. Election to Be Treated as an Interest Charge Domestic International Sales Corporation: Form 4876-A
c. International Boycott Report: Form 5713
d. Shareholder Report of Interest Charge: Form 8404
6. Electing Possessions Corporation
7. Withholding Agent’s Returns
a. General: Forms 1042 and 1042S b. Establishing Exemptions from General Withholding c. Dispositions of U.S. Real Property Interests: Forms 8288, 8288-A and 8288-B d. Partnership Withholding on Effectively Connected Income e. Exemption from Withholding on Income of Foreign Governments and International Organizations: Form W-8EXP
a. General: Forms 1042 and 1042S
b. Establishing Exemptions from General Withholding
c. Dispositions of U.S. Real Property Interests: Forms 8288, 8288-A and 8288-B
d. Partnership Withholding on Effectively Connected Income
e. Exemption from Withholding on Income of Foreign Governments and International Organizations: Form W-8EXP
8. Currency Transaction Reports
9. License to Collect Foreign Items
C. Foreign Persons 1. Nonresident Aliens a. Individual Return: Form 1040NR b. Certificate of Foreign Status: Form W-8 c. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN d. Departing Alien’s Return: Form 1040C and 2063 e. Estimated Tax for Nonresident Alien: Form 1040-ES (NR) f. Foreign Tax Credit Computation: Form 1116 g. Effectively Connected Income Certificate: Form W-8ECI h. International Boycott Report: Form 5713 i. Nonresident Alien’s Independent Personal Services: Form 8233 j. Dispositions of U.S. Real Property Interests: Forms 8288-A and 8288-B 2. Foreign Corporations a. Corporate Return: Form 1120F b. Personal Holding Companies: Form 1120, Schedule PH c. Foreign Tax Credit Computation: Form 1116 d. Effectively Connected Income Certificate: Form W-8ECI e. Foreign Owned Corporation Information Return: Form 5472 f. International Boycott Report: Form 5713 g. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B 3. Foreign Sales Corporation a. Corporate Return: Form 1120-FSC b. International Boycott Report: Form 5713 4. Foreign Partnership a. Return for Foreign Partnership Engaged in a U.S. Trade or Business: form 1065 b. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN c. Disposition of U.S. Real Property Interest: Form 8288-A and 8288-B 5. Foreign Trust or Estate a. Individual Return: Form 1040NR b. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN c. Return of Foreign Trust with U.S. Beneficiaries: Form 3520-A d. Effectively Connected Income Certificate: Form W-8ECI e. Nonresident Alien’s Independent Personal Services: Form 8233 f. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B 6. Exemption from Withholding on Income of Foreign Governments and International Organizations: Form W-8EXP 7. Foreign Person’s Application for Taxpayer Identification Number: Forms SS-4 and SS-5
C. Foreign Persons
1. Nonresident Aliens a. Individual Return: Form 1040NR b. Certificate of Foreign Status: Form W-8 c. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN d. Departing Alien’s Return: Form 1040C and 2063 e. Estimated Tax for Nonresident Alien: Form 1040-ES (NR) f. Foreign Tax Credit Computation: Form 1116 g. Effectively Connected Income Certificate: Form W-8ECI h. International Boycott Report: Form 5713 i. Nonresident Alien’s Independent Personal Services: Form 8233 j. Dispositions of U.S. Real Property Interests: Forms 8288-A and 8288-B 2. Foreign Corporations a. Corporate Return: Form 1120F b. Personal Holding Companies: Form 1120, Schedule PH c. Foreign Tax Credit Computation: Form 1116 d. Effectively Connected Income Certificate: Form W-8ECI e. Foreign Owned Corporation Information Return: Form 5472 f. International Boycott Report: Form 5713 g. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B 3. Foreign Sales Corporation a. Corporate Return: Form 1120-FSC b. International Boycott Report: Form 5713 4. Foreign Partnership a. Return for Foreign Partnership Engaged in a U.S. Trade or Business: form 1065 b. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN c. Disposition of U.S. Real Property Interest: Form 8288-A and 8288-B 5. Foreign Trust or Estate a. Individual Return: Form 1040NR b. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN c. Return of Foreign Trust with U.S. Beneficiaries: Form 3520-A d. Effectively Connected Income Certificate: Form W-8ECI e. Nonresident Alien’s Independent Personal Services: Form 8233 f. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B 6. Exemption from Withholding on Income of Foreign Governments and International Organizations: Form W-8EXP 7. Foreign Person’s Application for Taxpayer Identification Number: Forms SS-4 and SS-5
1. Nonresident Aliens
a. Individual Return: Form 1040NR b. Certificate of Foreign Status: Form W-8 c. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN d. Departing Alien’s Return: Form 1040C and 2063 e. Estimated Tax for Nonresident Alien: Form 1040-ES (NR) f. Foreign Tax Credit Computation: Form 1116 g. Effectively Connected Income Certificate: Form W-8ECI h. International Boycott Report: Form 5713 i. Nonresident Alien’s Independent Personal Services: Form 8233 j. Dispositions of U.S. Real Property Interests: Forms 8288-A and 8288-B
a. Individual Return: Form 1040NR
b. Certificate of Foreign Status: Form W-8
c. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN
d. Departing Alien’s Return: Form 1040C and 2063
e. Estimated Tax for Nonresident Alien: Form 1040-ES (NR)
f. Foreign Tax Credit Computation: Form 1116
g. Effectively Connected Income Certificate: Form W-8ECI
i. Nonresident Alien’s Independent Personal Services: Form 8233
j. Dispositions of U.S. Real Property Interests: Forms 8288-A and 8288-B
2. Foreign Corporations
a. Corporate Return: Form 1120F b. Personal Holding Companies: Form 1120, Schedule PH c. Foreign Tax Credit Computation: Form 1116 d. Effectively Connected Income Certificate: Form W-8ECI e. Foreign Owned Corporation Information Return: Form 5472 f. International Boycott Report: Form 5713 g. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B
a. Corporate Return: Form 1120F
b. Personal Holding Companies: Form 1120, Schedule PH
c. Foreign Tax Credit Computation: Form 1116
d. Effectively Connected Income Certificate: Form W-8ECI
e. Foreign Owned Corporation Information Return: Form 5472
g. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B
3. Foreign Sales Corporation
a. Corporate Return: Form 1120-FSC b. International Boycott Report: Form 5713
a. Corporate Return: Form 1120-FSC
b. International Boycott Report: Form 5713
4. Foreign Partnership
a. Return for Foreign Partnership Engaged in a U.S. Trade or Business: form 1065 b. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN c. Disposition of U.S. Real Property Interest: Form 8288-A and 8288-B
a. Return for Foreign Partnership Engaged in a U.S. Trade or Business: form 1065
b. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN
c. Disposition of U.S. Real Property Interest: Form 8288-A and 8288-B
5. Foreign Trust or Estate
a. Individual Return: Form 1040NR b. Certificate of Foreign Status of Beneficial Owner: Form W-8BEN c. Return of Foreign Trust with U.S. Beneficiaries: Form 3520-A d. Effectively Connected Income Certificate: Form W-8ECI e. Nonresident Alien’s Independent Personal Services: Form 8233 f. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B
c. Return of Foreign Trust with U.S. Beneficiaries: Form 3520-A
e. Nonresident Alien’s Independent Personal Services: Form 8233
f. Disposition of U.S. Real Property Interest: Forms 8288-A and 8288-B
6. Exemption from Withholding on Income of Foreign Governments and International Organizations: Form W-8EXP
7. Foreign Person’s Application for Taxpayer Identification Number: Forms SS-4 and SS-5
¶150.03. Return Filing and Payment of Tax
A. General B. Filing Returns 1. Selected Special Rules a. Individuals b. Corporations c. Foreign Estates, Trusts and Beneficiaries d. Partnerships 2. Time for Filing Returns 3. Extensions of Time for Filing 4. Signing Returns by Foreign Persons 5. Where to File Returns by Foreign Persons 6. Payment of Tax a. Estimated Tax b. Time for Payment of Regular Tax c. Payment of Tax by Withholding Agents d. Form of Payment C. Disclosure of Return Positions Under a Treaty
B. Filing Returns
1. Selected Special Rules a. Individuals b. Corporations c. Foreign Estates, Trusts and Beneficiaries d. Partnerships 2. Time for Filing Returns 3. Extensions of Time for Filing 4. Signing Returns by Foreign Persons 5. Where to File Returns by Foreign Persons 6. Payment of Tax a. Estimated Tax b. Time for Payment of Regular Tax c. Payment of Tax by Withholding Agents d. Form of Payment
1. Selected Special Rules
a. Individuals b. Corporations c. Foreign Estates, Trusts and Beneficiaries
c. Foreign Estates, Trusts and Beneficiaries
d. Partnerships
2. Time for Filing Returns
3. Extensions of Time for Filing
4. Signing Returns by Foreign Persons
5. Where to File Returns by Foreign Persons
6. Payment of Tax
a. Estimated Tax b. Time for Payment of Regular Tax c. Payment of Tax by Withholding Agents d. Form of Payment
a. Estimated Tax
b. Time for Payment of Regular Tax
c. Payment of Tax by Withholding Agents
d. Form of Payment
C. Disclosure of Return Positions Under a Treaty
¶150.04. Refunds
A. Regular Income Tax B. Withholding Tax 1. Foreign Taxpayer 2. Withholding Agent
A. Regular Income Tax
B. Withholding Tax
1. Foreign Taxpayer 2. Withholding Agent
1. Foreign Taxpayer
2. Withholding Agent
¶150.05. Selected Compliance Issues
A. Screening for Audit Incoming Returns with Foreign Characteristics B. International Enforcement Program 1. In General 2. Extraterritorial Compliance Activities 3. Simultaneous Examinations 4. Other Exchanges of Information 5. Criminal Matters 6. Illustrative Issues a. Section 482 Examinations b. Subpart F Examinations c. Boycott Issues d. Foreign Tax Credit Issues e. Availability of Foreign Books and Records 7. Currency Transactions and Financial Accounts C. Treaty Competent Authority Procedures D. U.S. Citizen and Resident Status Information Returns E. Departing Alien Procedures
A. Screening for Audit Incoming Returns with Foreign Characteristics
B. International Enforcement Program
1. In General 2. Extraterritorial Compliance Activities 3. Simultaneous Examinations 4. Other Exchanges of Information 5. Criminal Matters 6. Illustrative Issues a. Section 482 Examinations b. Subpart F Examinations c. Boycott Issues d. Foreign Tax Credit Issues e. Availability of Foreign Books and Records 7. Currency Transactions and Financial Accounts
2. Extraterritorial Compliance Activities
3. Simultaneous Examinations
4. Other Exchanges of Information
5. Criminal Matters
6. Illustrative Issues
a. Section 482 Examinations b. Subpart F Examinations c. Boycott Issues d. Foreign Tax Credit Issues e. Availability of Foreign Books and Records
a. Section 482 Examinations
b. Subpart F Examinations
c. Boycott Issues
d. Foreign Tax Credit Issues
e. Availability of Foreign Books and Records
7. Currency Transactions and Financial Accounts
C. Treaty Competent Authority Procedures
D. U.S. Citizen and Resident Status Information Returns
E. Departing Alien Procedures