Publication 54 |
2000 Tax Year |
Competent Authority Assistance
If you are a U.S. citizen or resident, you can request assistance
from the U.S. competent authority if you think that the actions of the
United States, a treaty country, or both, cause or will cause a tax
situation not intended by the treaty between the two countries. You
should read any specific treaty articles, including the mutual
agreement procedure article, that apply in your situation.
If your request provides a basis for competent authority
assistance, the U.S. competent authority will consult with the treaty
country competent authority on how to resolve the situation.
The U.S. competent authority cannot consider requests involving
countries with which the United States does not have an applicable tax
treaty.
It is important that you make your request for competent authority
consideration as soon as you have been denied treaty benefits or the
actions of both the United States and the foreign country have
resulted in double taxation or will result in taxation not intended by
the treaty.
In addition to a timely request for assistance, you should take the
following measures to protect your right to the review of your case by
the competent authorities.
- File a timely protective claim for credit or refund of U.S.
taxes on Form 1040X
to preserve your right to a foreign
tax credit if you do not qualify for the treaty benefit in
question.
- Take appropriate action under the procedures of the foreign
country to avoid the lapse or termination of your right of appeal
under the foreign country's income tax law.
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Your request for competent authority consideration should be
addressed to:
Internal Revenue Service
Director, International
LM:IN:T
950 L'Enfant Plaza South, SW
Washington, DC 20024.
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The request should contain all essential items of information
including the following items.
- The facts from which the issue arises.
- The amounts of income and tax involved.
- A description of the issue and identification of the
relevant treaty provisions.
- The respective positions taken by you and the foreign
country.
- Copies of any protests, briefs, or other pertinent
documents.
Additional details on the procedures for requesting competent
authority assistance are included in Revenue Procedure 96-13,
which is in Cumulative Bulletin 1996-1.
More information on treaties and problems.
Publication 901
contains an explanation of treaty provisions that
apply to amounts received by teachers, students, workers, and
government employees and pensioners who are alien nonresidents or
residents of the United States. Since treaty provisions generally are
reciprocal, you can usually substitute "United States" for the
name of the treaty country whenever it appears, and vice versa when
"U.S." appears in the treaty exemption discussions in Publication 901.
Publication 597
contains an explanation of a number of frequently
used provisions of the United States-Canada income tax treaty.
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