On January 26, 1993, the United States and Israel signed a protocol to the income tax convention between the two countries which had been signed on November 20, 1975 (the "Proposed Treaty"). Although the Proposed Treaty had been amended by an earlier protocol signed on May 30, 1980 (the "First...

Due to the Lack of A Tax-Sparing Provision, the Treaty Does Not Reduce Taxes For U.S. Investors, and For Many, Operating Through A Branch Will Continue to be the Best Option. Israel and the U.S. began negotiations on a tax treaty almost 30 years ago. Two treaties signed in the 1960s never...

Inversion or expatriation transactions are often prompted by financial institutions, such as private equity owners and hedge funds that own or control companies in which they have invested and that desire to reduce U.S. corporate taxes they must pay. This article explains the basic steps and...

This paper describes some of the possible structuring alternatives a foreign investor may use to limit his or her U.S. tax exposure with respect to the ownership and subsequent disposition of U.S. real estate. In explaining the structures, this paper also describes some of the relevant U.S....

The Service's assault on back-to-back royalties was dealt a serious blow by a recent Tax Court decision which suggests that royalties paid by one foreign person to another cannot ever be U.S.-source income even if the rights are licensed for use in the U.S. The court expressed concern with...

This article describes the basic principles of U.S. federal income tax liability under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) and the withholding mechanism that ensures collection of the tax. In addition, it sets forth some structuring alternatives to limit a foreign...

The authors analyze the regulations proposed in September 2003 and offer suggestions for making the Service's approach more workable.Proposed regulations issued in September 2003 provide rules for the implementation of Section 1446's requirement that a partnership pay to the IRS taxes on behalf...

Until recently, foreign persons could enter into transactions that were economically similar to investment in U.S. stocks or securities but avoid the U.S. withholding tax that would have been owed on any payment of dividends or interest had such persons actually acquired U.S. stock or...

On July 26, 1994, Governor Cuomo signed legislation which will permit limited liability companies to be formed in New York State. When the law became effective October 24, 1994, New York was the 42nd state to enact an LLC statute. The limited liability company (“LLC”) is a new form of doing...

During the course of the 1990s, a succession of lawyers at the office of Associate Chief Counsel (International) of the Internal Revenue Service led a wise and ultimately successful effort to modernize the regulations under § § 1441 and 1442, dealing with the withholding of tax on investment...