International Tax Blog

New IRS Practice Unit: Concepts of GILTI

Yesterday the IRS published a new practice unit titled “Concepts of Global Intangible Low-Taxed Income Under IRC 951A.” In addition, last week the IRS published a practice until titled “Partner’s Outside Basis.” Both of these practice units have been added to our Practice Units By Topic page. Read more →

13 New Charts Published

Today we published 13 new situational tax charts to AndrewMitchel.com (charts listed in topical order and charts listed in alpha-numeric order). We have over 1300 charts for FREE on our website. The recently published charts include: Rev. Rul. 68-289 (Merger of Partnerships: Deemed Transactions (Assets-Over Form)) Rev. Rul. 76-364 (Stock Redemption: Lost Control Where Acting In Concert With One Other Shareholder) Rev. Rul. 80-240 (Shareholder Treated As AgentTo Borrow Funds For Corp) Rev. Rul. 85-198... Read more →

130 New Tax Charts – LOB Active Trade or Business Test – Derived In Connection With

Today we published 130 new charts on andrewmitchel.com. The U.S. Treasury Department Technical Explanations for 26 treaties include 5 examples to illustrate the “derived in connection with” requirement under the active trade or business test regarding the limitation on benefits (“LOB”) provisions. The 130 charts are the 5 examples for each of the 26 treaties. Derived In Connection With An item of income is derived in connection with a trade or business if the income-producing... Read more →

New IRS Practice Unit: Allocation and Apportionment of Deductions

Yesterday the IRS published a new practice unit titled “Allocation and Apportionment of Deductions.” This practice unit discusses the allocation and apportionment of expenses and deductions for purposes of computing the foreign tax credit limitation. We have added this practice unit to our Practice Units By Topic page. Read more →

Famous Tax Quotes – A Detour to Crazy Town

Continuing our series on Famous Tax Quotes (quotes from court opinions and rulings with language that is colorful or that concisely states an important tax principle), in Caylor Land Development, Inc. v. Commr., T.C. Memo 2021-30, the Tax Court analyzed whether an Anguilla insurance company was providing “insurance.” It first held that there was no risk distribution, and therefore the company was not providing insurance. The Court also held, as an alternative ground, that what... Read more →

2021 1st Quarter Published Expatriates

Today the Treasury Department published the names of individuals who renounced their U.S. citizenship or terminated their long-term U.S. residency (“expatriated”) during the first quarter of 2021. The number of published expatriates for the quarter was 228. See the chart below for the quarterly expatriates from 2011 to the first quarter of 2021. For our prior coverage of expatriation, see all posts tagged Expatriation. Read more →

Famous Tax Quotes - Two-Way Street: Downhill for the IRS & Uphill for the Taxpayer

Continuing our series on Famous Tax Quotes (quotes from court opinions and rulings with language that is colorful or that concisely states an important tax principle) today’s tax quote is: [In Estate of Rogers v. Commissioner, T.C. Memo. 1970-192, we] accepted that “a taxpayer may go beyond what appears on the face of an agreement, just as the Commissioner may do so.” But, we observed, “the so-called ‘two-way street’ seems to run downhill for the... Read more →

New IRS Practice Units - FTC Carryback and Carryover & Liquidating Distributions of a Partner’s Interest in a Partnership

Last week the IRS published 2 new practice units related to international tax: FTC Carryback and Carryover Liquidating Distributions of a Partner’s Interest in a Partnership PDF We have added these practice units to our Practice Units By Topic page. Read more →

US Treaty Limitation on Benefits Status Map

We have created a map of the limitation on benefits (“LOB”) status of the 66 countries for which the US has income tax treaties. US treaties with 46 countries have full LOB rules. US treaties with six countries have no LOB rules (Greece, Hungary, Pakistan, Philippines, Poland, and Romania). The former USSR-US Income Tax Treaty, which applies to nine former republics of the USSR, also has no LOB rules (Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova,... Read more →

AM 2021-002 – Relevance & Check-the-Box Elections

Yesterday the IRS published AM 2021-002. This AM concludes that a foreign eligible entity is classified pursuant to Treas. Reg. §301.7701-3(b)(2) (“the default classification provision”) during the period in which its classification is not relevant. The AM states that this determination is made when the classification of the entity first becomes relevant, but the classification applies during the non-relevant period. The AM also concludes that the 60-month limitation rule does not apply if the election... Read more →