International Taxation
Professor Jeffrey M. Colón
Spring 2002

Syllabus	

International Tax Home

  1. Introduction to U.S. International Tax law and Policy--Overview


    1. Promulgation, Enforcement, and Interpretation of the Internal Revenue Code (HO)
    2. U.S. International Tax Matrix (HO)
    3. Overview of U.S. Federal Income Taxation of Cross-Border Transactions (HO)
    4. Joint Committee on Taxation, Overview of Present-Law Rules and Economic Issues in International Taxation, JCX-13-99 (March 9, 1999) [JCT Int'l Tax] (HO)
    5. U.S.-Luxembourg Income Tax Treaty [Treaty] (HO) and Treasury Technical Explanation

  2. United States Jurisdiction to Tax--Nationality and Tax Residence--Overview


    1. Citizens

      1. Cook v. Tait, 265 U.S. 47 (1924)
      2. Benitez Rexach v. U.S., 390 F.2d 631 (1st Cir. 1968)
      3. U.S. v. Lucienne D'H. de Benitez Rexach, 558 F.2d 37 (1st Cir. 1977)
      4. Rev. Rul. 75-82,1975-1 C.B. 5
      5. Rev. Rul. 92-109, 1992 C.B. 3

      6. IRC: 877(skim) and 911(skim); for a discussion of the Expatriate Tax Provision, see Colon, Changing U.S. Tax Jurisdiction: Expatriates, Immigrants, and the Need for a Coherent Tax Policy 34 San Diego Law Review 1 (1997)
      7. Regs: 1.1-(a)(1); 1.1(b) and (c).

    2. Resident aliens

      1. IRC: 6851(d) and 7701(b)
      2. Regs:1.6851-2; 301.7701(b)-1,-2,-3(a),-3(b)(4),-3(b)(5),-8(a)(1),-8(d) (resident aliens)

      3. Treaty: Articles 1 and 4

    3. Juridical Entities: Corporations, Partnerships, and Trusts

      1. Rev. Rul. 93-4, 1993 C.B. 225 (skim for historical background of Regs. 301.7701-2 through 5); skim Explanation of the Provisions (a.k.a. the Preamble) to Check-the-box Regulations (HO)

      2. IRC: 7701(a)(1)-(10); 7701(a)(30); and 7701(a)(31)
      3. Regs: 301.7701-1, -2, -3 and -5; Note, these regulations are very important

      4. Treaty: Articles 3 and 4

  3. Sources of International Income and Source Basis Taxation


    1. Single Source Income

      1. IRC: 861, 862, 863, 865, 871, 881, 1441, 1442, 1445, and 6114
      2. Regs: 1.861-1 through -7 (skim); 1.863-1(d); 1.863-7, 1.871-7 (skim); 1.865-2(a)(1), (2); 1.861-18; 1.1441-1 through -9 (skim)
      3. Treaty: Articles 10-19

        1. Interest and dividends

          1. Regs. 1.861-2(a)(7), 1.861-3(a)(7), 1.871-7(b)(2), and 1.894-1(c)

        2. Compensation for services

          1. Stemkowski v. CIR, 690 F.2d 40 (2d. Cir. 1981)
          2. Korfund v. CIR, 1 T.C. 1180 (1943)
          3. Rev. Rul 74-108, 1974-1 C.B. 248
          4. Piedras Negras v. CIR, 43 B.T.A. 297 (1941)
          5. Piedras Negras v. CIR, 127 F.2d 260 (5th Cir. 1942)
          6. FSA 199947028

        3. Rents and royalties

          1. Rev. Rul. 68-443, 1968-2 C.B. 304
          2. Rev. Rul. 80-362, 1980-2, C.B. 208
          3. SDI Dutch B.V. v. CIR, 107 T.C. 161 (1996)
          4. Ingram v. Bowers, 47 F.2d 925 (SDNY 1931), aff'd 57 F.2d 65 (2nd. Cir. 1932)
          5. Boulez v. CIR, 83 T.C. 584 (1984)
          6. Rev. Rul. 74-555, 1974-2 C.B. 202
          7. FSA 1999-790

        4. Sale of property

          1. Rev. Rul. 84-78, 1984-1 C.B. 173
          2. Cook v. US, 599 F.2d 400 (Ct. Cl. 1979)
          3. International Multifoods Corp. v. CIR, 108 T.C. 25 (1997)
          4. Regs. 1.865-2(a)(1), (2)

        5. Miscellaneous

          1. BOA v. US, 680 F.2d 142 (Ct. Cl. 1982)
          2. Reg. 1.863-1(d) [Scholarships]
          3. Reg. 1.861-18 and Preamble to proposed Regs. 1.861-18 (for background) (HO) [Software]

      4. Compound Source Income

        1. Reg. 1.863-3

  4. Trade or Business Income of Foreign Persons


    1. IRC: 864, 871(b), 872(a), 874, 875, 882(a), 882(b), and 882(c)
    2. Regs: 1.864-2, -3, -4, -5, -6, -7 (skim)

    3. Treaty: Articles 5, 6, 7, 14, 15-21

    4. Pinchot v. CIR, 113 F.2d 718 (1940)
    5. Neill v. CIR, 46 B.T.A. 197 (1942)
    6. U.S. v. Balanovski, 236 F.2d 298 (1956)
    7. Rev. Rul. 73-522, 1973-2 C.B. 226
    8. Rev. Rul. 91-7, 1991-1 C.B. 110
    9. Taisei Fire and Marine Insurance v. CIR, 104 T.C. 535 (1995)

    10. Dept. of Treasury, "Selected Tax Policy Implications of Global Electronic Commerce," Nov. 21, 1996
    11. J. Clifton Fleming, Jr., US Taxation of Profits form Internet Software Sales--An Electronic Commerce Case Study
    12. OECD Committee on Fiscal Affairs, "Clarification on the Application of the Permanent Establishment Definition in E-Commerce: Changes to the Commentary on the Model Tax Convention on Article 5," (Dec. 22, 2000)[Adobe File]

  5. Sales of U.S. Real Property Interests


    1. IRC: 897
    2. Regs: 1.897-1, -2 (Skim)
    3. Treaty: Articles 6 & 14

  6. Branch Profits Tax


    1. IRC: 884
    2. Regs. 1.884-1 (skim)
    3. Treaty: Article 10, par. 5; Article 11

  7. Foreign Tax Credit

    1. Direct Foreign Tax Credit

      • Isenbergh, 123-132, 135-144

      1. IRC: 901(a) and (b)(1); 903; 904; Regs: 1.901-2 (skim)
      2. Riggs Nat'l Corp. v. CIR, (1999)
      3. Rev. Rul. 87-39, 1987-1 C.B. 180

    2. Indirect Foreign Tax Credit

      • Isenbergh, 150-166

      1. IRC: 902(a), (b), and (c); 78
      2. Revenue Ruling 71-141, 1971-1 C.B. 211

  8. U.S. Taxation of the Earnings of Foreign Corporations: Anti-Deferral Regimes

    1. Foreign Personal Holding Companies
      1. IRC: 551, 552, 553, 554, 555, 556, and 557

    2. Controlled Foreign Corporations ("CFC")

      • Isenbergh, 169-178

      1. Definition of CFC (IRC: 957 and 958)

      2. Inclusion of Subpart F Income (IRC 951)

      3. Definition of Subpart F Income (IRC 952(a) and (b))

        1. Foreign Base Company Income (IRC 954(a) and (b))
        2. Foreign Personal Holding Company Income (IRC 954(c))
        3. Foreign Base Company Sales Income (IRC 954(d))
        4. Foreign Base Company Services Income (IRC 954(e))

      4. Distribution of Previously Taxed Earnings (IRC 959)

      5. Foreign Tax Credit Rules (IRC 960)

      6. Basis Adjustments for Subpart F Inclusions (IRC 961)

      7. Gains on Dispositions of Stock of a CFC (IRC 1248)

    3. Passive Foreign Investment Companies (IRC 1291-1297)

      • Isenbergh, 181-183

    4. Foreign Tax Credit Limitations--Baskets (IRC 904(d))

      • Isenbergh, 145-150

    5. Intercompany Transactions (IRC: 482, 6038A)

      • Isenbergh, 57-67