Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits
Join experienced attorney, Patrick McCormick, as he contextualizes the use of income tax treaties in the international tax area. The course begins with an overview of how the United States taxes nonresidents, both conceptually and under statutory rules. Then we provide historical background on United States tax treaties, the ongoing relevance of the U.S. model treaty, and interaction between statutory and treaty rules. The program then delves into specific treaty terms and where/how they are used, including compliance requirements for obtaining treaty benefits.
Publication Date: July 2022
Topics Covered
- Nonresidents — Income Tax
- Background Considerations
- Nonresidents — United States Trade or Business Income
- Nonresidents — FIRPTA
- FDAP Income
- Nonresidents — Income Tax Treaties
- Income Tax Treaties — Applicable Provisions
- Noncitizen Non-domiciliaries — Transfer Taxes
- Estate and Gift Tax Treaties
Learning Objectives
- Identify how the United States taxes nonresidents under statutory/regulatory rules
- Recognize how tax treaties alter statutory rules
- Describe how application of tax treaties to qualified taxpayers can significantly reduce American tax liabilities
- Recognize the capital gains tax on non-ECI U.S. sourced gains nonresidents are generally subject to
- Identify how FDAP income applies
- Recognize what the goal of asset use test and business activities test is to determine whether income is
- Describe roughly how many countries the United States maintains income tax treaties with
- Identify the maximum percentage rate of tax applicable regarding noncitizen non-domiciliaries, nonresident individuals receive a $60,000 estate tax exclusion
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Patrick McCormick
Patrick McCormick is an attorney with over a dozen years of experience, focusing his practice specifically on international taxation. Mr. McCormick represents both business and individual clients on all aspects of United States international tax rules, both from an income tax and estate/gift tax perspective. Having previously served as a partner at a large law firm, a midsized accounting firm, and a boutique tax law firm, Patrick’s client exposures have covered every conceivable area of American-side international tax matters. Patrick has also represented every type of taxpayer – from multibillion-dollar business enterprises and ultra-high net worth individuals to startups and individuals with complex questions but limited budgets.
Mr. McCormick has worked with clients located in over 90 countries on American tax considerations of multinational activities, cultivating specialized knowledge in every area of United States international tax rules. His explicit practice focus has facilitated an unparalleled expertise in the field; Patrick is trusted by clients and advisors around the world to obtain optimal results on international tax matters.
Mr. McCormick is a primary and prolific authority on tax matters. He has spoken on all aspects of international tax to hundreds of thousands of attendees around the globe, functioning as the primary international tax resource for many national organizations. Patrick has presented for the American Bar Association, the American Immigration Law Association, and state and local bar associations around the United States. He is a regular contributor to America’s premier tax law publications, including Tax Notes, Journal of Taxation, Tax Notes International, Law360, and Practical Tax Lawyer.
Mr. McCormick published his first treatise on international tax matters, Allocation and Apportionment Rules Under Secs. 861-865, for Thomson Reuters’ Catalyst platform, in October 2021. In late 2021, he also released a 15-hour digital course entirely dedicated to nonresident taxation, United States Tax Considerations for Nonresident Taxpayers. Mr. McCormick has been named a Super Lawyers Rising Star from 2016-2022.
Mr. McCormick counsels a range of clients from individuals to businesses with their international tax and legal needs. When counseling individual clients, Mr. McCormick assists with residency planning, asset ownership structuring, and minimization of global income tax bills for foreign-sourced income items. His business client representation includes an extensive scope of multinational transactions, including classification of foreign entities, options for structuring multinational transactions, and minimization of American anti-deferral tax mechanisms. Mr. McCormick’s specific and comprehensive practice allows him to assist clients when international factors are most relevant.