Source of Income Rules


Internal Revenue Code

Treasury Regulations

Proposed Regulations (Source of Service Income - August 5, 2004)


Court Decisions


International Multifoods Corp. v. Commissioner, 108 T.C. 579 (1997)

Bowater v. Commissioner, 100 F.3d 12 (1997), rev'g 101 T.C. 207 (1993) (section 861; interest expense allocation)

SDI Netherlands B.V. v. Commissioner, 107 T.C. 161 (1996) (cascading royalties)

Chevron Corp. v. Commissioner, 104 T.C. 719 (1995) (section 861; state tax allocation and apportionment)

Phillips Petroleum Co. v. Commissioner, 101 T.C. 78 (1993), aff'd, 70 F.3d 1282 (10th Cir. 1995) (section 863)

Intel Corp. v. Commissioner, 100 T.C. 616 (1993), aff'd, 67 F.3d 1445 (9th Cir. 1995) (section 863)


Other Materials


PLR 200426001 (Source of pension payments from domestic plan to nonresident alien individual)

Rev. Proc. 2004-37, 2004-26 I.R.B. 1 (Source of Pension Payment to Nonresident Alien Individual)

PLR 200406007 (Distributions by qualified plan to German participants in connection with termination of plan entirely

PLR 200403033 (Loan assistance payments to foreign persons employed outside U.S. are foreign source income)

Structuring Cross-Border Software Transactions

Karlin & Smith, On-Line, Off Base: The Computer Program Final Regulations Miss an Opportunity, 10 J. Int'l Tax'n 8 (1999)

Revision of the Commentary on Article 12 Concerning Software Payments, September 29, 1998


Illustrations


Sales of Produced Inventory - Section 863 Sales

Sales of Personal Property by Nonresidents

Sales of Purchased Inventory by Nonresidents

Sales of Produced Inventory by Nonresidents - Interpretation A

Sales of Produced Inventory by Nonresidents - Interpretation B


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