There are a number of pitfalls that beset taxpayers seeking to access MAP and to implement MAP resolutions.
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Treaties
Tax credit did not independently arise under treaties
Given the proliferation of use of the model treaty language, most U.S. citizens living abroad will continue to find a foreign tax credit unavailable against their net investment income, even when that income is taxed by other countries.
Tax treaties do not provide a foreign tax credit against net investment income tax
A U.S. taxpayer living abroad was not entitled to take a foreign tax credit against her net investment income tax based on provisions in the United States–France and United States–Italy tax treaties.
Foreign pension plans and the US-UK tax treaty
Whether contributions, earnings, and distributions are includible in the taxpayer’s income depends on the type of foreign pension plan and whether a tax treaty exempts an event that is otherwise taxable.
US-Mexico-Canada Agreement to replace NAFTA
The proposed USMCA covers new areas such as labor, the environment, anti-corruption, and regulatory policy, among others
Researchers and scholars claim tax treaty benefits
Three recent cases provide tips to decide if it’s worth the time and effort to appeal to the Tax Court.
Failure to abandon U.S. residency leads to tax liability
A German citizen’s failure to establish that he was a resident of Germany meant he was a “covered expatriate” liable for tax on stock sale gains.
Tax treaty benefits for U.S. citizens and residents
Treaties may have exceptions to saving clauses that benefit U.S. persons in terms of their U.S. income taxes.
How inbound real estate investors are treated under the Tax Cuts and Jobs Act
This column discusses the portions of the act likely to affect the typical inbound real estate investment structure.
Treaty benefits on FDAP income derived by hybrid entities
This item discusses treaty benefit limitations on U.S.-source FDAP income with respect to hybrid
entities and procedural requirements of obtaining treaty benefits.
The Authorized OECD Approach to a U.S. Permanent Establishment
This item provides an overview of applying U.S. domestic tax law and a U.S. income tax treaty to a foreign corporation.
Tax Court Needs to Do More Work in Interpreting Totalization Agreement
The meaning of the terms “amend” or “supplement” must be determined in light
of the full text of a social security totalization agreement and the shared expectations of the
contracting governments.
Foreign-Owned Disregarded Entities Would Be Required to Report
U.S. disregarded entities owned by foreign persons would be treated as domestic corporations under regulations proposed by the IRS.
The Evolution of U.S. Reporting Requirements for Canadian Retirement Accounts
This item explains the evolution of the IRS reporting requirements for Canadian registered retirement savings plans and registered retirement income funds.
Prop. Regs. Would Impose Reporting Requirements on Foreign-Owned Disregarded Entities
Foreign-owned disregarded entities, such as LLCs, would be required to report transactions with their owner and keep records under rules proposed by the Internal Revenue Service.
Anti-Tax Avoidance Directives Issued by European Commission
The European Commission issued two proposed directives regarding international taxation.
German Who Gave Up U.S. Residency Liable for Exit Tax
A taxpayer had expatriated in November 2010 when he surrendered his legal permanent resident status and therefore was subject
to Sec. 877A.
IRS Issues Updated Guidance on Requesting and Obtaining an APA
The IRS has issued updated guidance on requesting and obtaining an advance pricing agreement, modifying somewhat its proposed
revenue procedure published in Notice 2013-79.
Revised Procedures for Obtaining Assistance From U.S. Competent Authority, Including Discretionary Relief
The IRS published guidance on the process
of requesting and obtaining assistance under U.S. tax treaties from the U.S. competent authority.
Totalization Agreements: Taking Exception to Social Security
A totalization agreement is intended to eliminate dual social taxation and to provide additional benefit protection for workers who have worked in both the United States and another country.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
