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taxmap/pubs/p54-023.htm#TXMP25195ebd Competent   Authority Assistance

Competent Authority Assistance

If you are a U.S. citizen or resident alien, 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 treaty articles, including the mutual agreement procedure article, that apply in your situation.

The U.S. competent authority cannot consider requests involving countries with which the United States does not have a tax treaty.

taxmap/pubs/p54-023.htm#TXMP105f6bcf Effect of request for assistance.

If your request provides a basis for competent authority assistance, the U.S. competent authority generally will consult with the treaty country competent authority on how to resolve the situation.

taxmap/pubs/p54-023.htm#TXMP4a8dd80f How to make your request.

It is important that you make your request for competent authority consideration as soon as either of the following occurs.

• You are denied treaty benefits.
• Actions taken by both the United States and the foreign country result in double taxation or will result in taxation not intended by the treaty.

In addition to making a request for assistance, you should take steps so that any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. Some of the steps you should consider taking include the following.

• Filing a protective claim for credit or refund of U.S. taxes.
• Delaying the expiration of any period of limitations on the making of a refund or other tax adjustment.
• Avoiding the lapse or termination of your right to appeal any tax determination.
• Complying with all applicable procedures for invoking competent authority consideration.
• Contesting an adjustment or seeking an appropriate correlative adjustment with respect to the U.S. or treaty country tax.

Taxpayers can consult with the U.S. competent authority to determine whether they need to take protective steps and when any required steps need to be taken.

The request should contain all essential items of information, including the following items.

• A reference to the treaty and the treaty provisions on which the request is based.
• The years and amounts involved in both U.S. dollars and foreign currency.
• A brief description of the issues for which competent authority assistance is requested.

A complete listing of the information that must be included with the request can be found in Revenue Procedure 2006-54, 2006-49 I.R.B. 1035, available at www.irs.gov/pub/irs-irbs/irb06-49.pdf.

Your request for competent authority consideration should be addressed to:   n   Deputy Commissioner (International)   Large and Mid-Size Business Division   Attn: Office of Tax Treaty   Internal Revenue Service   1111 Constitution Avenue, NW   Routing MA3-322A   Washington, DC 20224

taxmap/pubs/p54-023.htm#TXMP2232ccf3 Additional filing.

In the case of U.S.- initiated adjustments, you also must file a copy of the request with the IRS office where your case is pending. If the request is filed after the matter has been designated for litigation or while a suit contesting your relevant tax liability is pending in a United States court, a copy of the request also must be filed with the Office of Associate Chief Counsel (International), lnternal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224, with a separate statement attached identifying the court where the suit is pending and the docket number of the action.

Additional details on the procedures for requesting competent authority assistance are included in Revenue Procedure 2006-54.

taxmap/pubs/p54-023.htm#TXMP4365036d More information on treaties.

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.

Previous Page:  Publication 54 - Tax Guide for U.S. Citizens and Resident Aliens Abroad - Common Benefits Next Page:  Publication 54 - Tax Guide for U.S. Citizens and Resident Aliens Abroad - Obtaining Copies of Tax Treaties Use     to find additional instances of index items.