In the more than 100 years that U.S. withholding tax has been imposed on payments of U.S.-source income to foreign persons, the definition of a "withholding agent" has remained virtually unchanged.
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International Tax
IRS Proposes to Define Active Conduct of a Trade or Business Under PFIC Rules
Proposed regulations would clarify the circumstances under which investment income a foreign insurance company earned is derived in the active conduct of an insurance business for determining whether the income is passive income, and thus the extent to which the company’s assets are treated as passive assets in determining whether the company is a passive foreign investment company.
Indirect Taxes in India: Time for Reform?
This item provides an overview of the current indirect tax system in India and highlights changes proposed by a newly elected government, which, if adopted, would become effective in April 2016.
BEPS Country-by-Country Reporting: The Practical Impact for Corporate Tax Departments
The OECD’s Action Plan on Base Erosion and Profit Shifting included the highly anticipated final version of its recommended country-by-country reporting template.
Reports of the Double Irish’s Death Are Greatly Exaggerated
Ireland amended its statutes to provide that new companies incorporated in Ireland will be treated as Irish tax residents by default. However, a closer examination of this change and other untouched areas of Irish law illuminates another route by which companies may be able to achieve benefits similar to the Double Irish structure.
FATCA: A New World of Terminology and Compliance
FATCA introduced a new reporting and tax withholding regime, effective July 1, 2014, that is directed at both foreign financial institutions and nonfinancial foreign entities to prevent tax evasion by U.S. citizens and residents through use of offshore accounts.
IRS Intends to Amend Rules So Refunds Match Foreign Withholding Payments
The IRS proposed that taxpayers that are subject to withholding under Ch. 3 or 4 and that make claims for refunds or credits of the withheld tax be prevented from obtaining them where a withholding agent failed to deposit the required amounts.
Proposed PFIC Rules Would Define “Active Conduct” of an Insurance Business
Proposed regulations would clarify the circumstances under which investment income earned by a foreign insurance company is derived in the active conduct of an insurance business for purposes of determining whether the income is passive income.
Guiding Clients Through the Offshore Voluntary Disclosure Program
This item provides a synopsis of the steps and procedures involved in initiating and completing a successful voluntary disclosure through the OVDP.
FIRPTA Rules Impact U.S. Real Estate Transactions
Prospective purchasers should be aware of withholding tax obligations and tax reporting requirements under the Foreign Investment in Real Property Tax Act.
Selling Partnerships That Own CFCs: A Potential Trap for the Unwary
Should gain recognized on a sale of a partnership that owns CFC stock be treated as capital gain or ordinary income?
Taxpayer Was a Bona Fide Resident of U.S. Virgin Islands
Taxpayer who had filed tax returns with the U.S. VIBIR was a bona fide resident of the U.S. Virgin Islands, and the statute of limitation on assessment had expired on the U.S. returns.
Offshore Disclosure Program a Success, Will Remain Open
The IRS stated that it intends to keep its Offshore Voluntary Disclosure Program (OVDP) open until it announces otherwise.
Form 5472 Regulations Are Finalized Prohibiting Filing Form Separately
Final regulations issued by the IRS remove the provision allowing Form 5472 to be timely filed separately from the corporation’s tax return if that return is filed late.
Final Regulations Address Gain Recognition Agreements and Other Cross-Border Transfer Reporting
Final regulations revise the reporting rules applicable to stock and property transfers under Secs. 367 and 6038B, including Sec. 367(a) gain recognition agreements.
OECD’s Draft Proposal on Treaty Shopping, Treaty Abuse Situations
The OECD recently issued a report that includes proposed changes to the Model Tax Convention, which are intended to prevent treaty abuse, and commentary on the changes.
IRS Opens Secure Portal for FATCA Reporting
Financial institutions and tax administrators that have an obligation under U.S. tax law to report account information to the IRS now have a secure online site where they can transmit that information, the IRS announced.
Regulations on Reporting Specified Foreign Financial Assets Are Finalized
Individuals who are required to report interests in foreign financial assets to the IRS got guidance on the process in the form of final regulations. The regulations finalize temporary regulations issued in 2011, with some changes.
Final Rules Govern Foreign Tax Credit Splitter Arrangements
The IRS issued regulations that prohibit taxpayers from taking a foreign tax into account for federal foreign tax credit purposes before the tax year in which the taxpayer takes the related income into account.
IRS Offers New Options for Taxpayers Who Failed to File International Information Returns
This item is an overview of the ways a taxpayer can deal with the failure to file required international information returns.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
