Completing Form 8833 Treaty-Based Return Position Disclosure: Claiming Income Tax Treaty Benefits

The United States has current income tax treaties with over 60 countries. The treaties are intended to eliminate or reduce double income taxation or to reduce U.S. income tax liability by asserting a claim to a treaty benefit. A foreign person claiming a tax benefit under a U.S. income tax treaty may need to report the position on IRS Form 8833, Treaty-Based Return Disclosure Under Section 6114 or 7701(b).

Section 6114 requires that "any taxpayer who takes the position that a treaty of the United States overrules (or otherwise modifies) an internal revenue law of the United States shall disclose (in such manner as the Secretary may prescribe) such 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, obtain U.S. resident certification (Form 8802) 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.

1. Identifying whether a taxpayer has a requirement to file Form 8833
   1. Potential treaty-based positions under Section 6114
   2. Dual-residence taxpayers under Section 7701
2. Form 8833 specifics
   1. Identifying treaty articles
   2. Determining Section of Internal Revenue Code modified or overridden by the treaty article
   3. Limitation of benefits exemptions
3. Interrelation between Form 8833 requirements and other filing obligations
   1. W-8BEN
   2. Form 8802
   3. Form 1042
4. Impact of TCJA tax reform law on claiming a treaty-based position

The panel will discuss these and other important issues:

• Valid and invalid claims and scenarios
• Common residency provisions and tie breakers for dual residents
• Saving clauses applicable to U.S. citizens
• Exemptions for personal services income
• Treatment of interest and dividends
• How to complete Forms 8833, 8802, and W-8BEN with examples

Learning Objectives

After completing this course, you will be able to:

• Determine how to apply specific treaty articles and Code Sections to Form 8833
• Recognize how treaty structures' limitations of benefits impact treaty benefits a taxpayer may claim in a return
• Identify the impact of savings clauses on potential issues arising from interest limitations and BEAT provisions in the TCJA
• Discern the changes tax reform has made on the foreign tax credit system for individual taxpayers

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax returns, supervising other attorneys or accountants. Specific knowledge and understanding of foreign income tax rules, including U.S. tax disclosure and withholding requirements; familiarity with tax treaty structures and U.S. tax rules mitigating the impact of dual taxation on economic activities carried on by U.S. taxpayers in other countries and tax jurisdictions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).