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Interpreting Tax Treaties: Tax-Free Interest, Foreign Tax Credits and Form 8833

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
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Tuesday, June 3, 2025

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, May 9, 2025

or call 1-800-926-7926
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This course will provide tax advisers, professionals, and preparers with a solid overview and explanation of key income tax treaty provisions needed to determine whether their clients may take treaty-based return positions. The panel will discuss income tax treaties that exist between the U.S. and over 66 of its trading partners. The talk will focus on why treaties are so important to U.S. businesses as well as to U.S. investors in foreign securities. The panel will talk about one or two specific treaties to illustrate the value of treaties in general.

Description

The United States has income tax treaties in force with over 66 countries. The treaties are intended to eliminate or reduce double income taxation. Benefits are available to nonresident aliens (and, to a limited extent, to U.S. citizens living abroad) concerning U.S. federal income taxes and to U.S. citizens and residents relating to foreign country income taxes. Tax advisers working with nonresident aliens with U.S. investments or business activities and U.S. individuals with foreign source income need to know the procedures for claiming and reporting treaty-based return positions.

While each income tax treaty has its specific terms and requirements, common themes and terminology are found in all U.S. income tax treaties. Under most income tax treaties, U.S. taxpayers may claim exemption from source country taxation for personal services income. Other provisions include reduction or waiver of withholding taxes on interest and dividends.

A foreign person claiming a tax benefit under a U.S. income tax treaty may report the position on IRS Form 8833. Alternatively, a taxpayer may take a silent treaty position. Failure to file Form 8833 with the IRS may result in a $1,000 penalty for each year an individual fails to disclose their treaty position. The disclosure must include specific information about the treaty, including the article of the treaty that applies, and the Internal Revenue Code section changed by the claimed treaty position.

Listen as the panel provides comprehensive guidance on how to read and interpret key income tax treaty provisions, report treaty-based positions on Form 8833, how to claim reduction or exemption from foreign income taxation under a treaty, and complete Forms W-8BEN and W-8BEN-E to establish an exemption from U.S. withholding taxes.

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Outline

  1. Basic structure of income tax treaties
  2. Common features of tax treaties
  3. Persons who can benefit from an income tax treaty
  4. Application of the "savings clause" to U.S. citizens
  5. Personal services income
  6. Interest and dividends
  7. Compliance and forms

Benefits

The panel will discuss these and other critical matters:

  • Purposes of income tax treaties
  • Persons who can claim benefits
  • Common residency provisions and tie-breakers for dual residents
  • Savings clauses applicable to U.S. citizens
  • Exemptions for personal services income
  • Treatment of interest and dividends
  • How to complete Forms 8833 and W-8BEN with examples

Faculty

McCormick, Patrick
Patrick J. McCormick, J.D., LL.M.
Partner
Rimon Law

Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has...  |  Read More

Patel, Arti
Arti Patel, CPA
Manager, Global Mobility Tax
CliftonLarsonAllen

Ms. Patel is an experienced Tax Manager at CLA, where she leads the delivery of comprehensive tax solutions...  |  Read More

Auberie Silvain, Esq., LL.M.
Auberie Silvain, Esq., LL.M.
Attorney
Greenberg Glusker Fields Claman & Machtinger

Ms. Silvain is an Associate in the Private Client Services Group, specializing in cross-border U.S. tax planning...  |  Read More

Attend on June 3

Early Discount (through 05/09/25)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend June 3?

Early Discount (through 05/09/25)

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.