The IRS should be locked up

I had heard tales of the USA's Inland Revenue Service but this is the first time I have come to grips with it. I have no doubt that if the IRS were an individual it would be locked up as insane. Look at this: "For Paperwork Reduction Act Notice, see separate instructions". All you folk who deal with this thing regularly have my deepest sympathy.

It took me several hours of searching to find out what I needed to know and what I needed to know is

An entity (but not an individual) that is claiming a reduced rate of withholding under an income tax treaty must represent that it:
Derives the item of income for which the treaty benefit is claimed, and

Meets the limitation on benefits provisions contained in the treaty, if any.

An item of income may be derived by either the entity receiving the item of income or by the interest holders in the entity or, in certain circumstances, both. An item of income paid to an entity is considered to be derived by the entity only if the entity is not fiscally transparent under the laws of the entity's jurisdiction with respect to the item of income. An item of income paid to an entity shall be considered to be derived by the interest holder in the entity only if:
The interest holder is not fiscally transparent in its jurisdiction with respect to the item of income, and

The entity is considered to be fiscally transparent under the laws of the interest holder's jurisdiction with respect to the item of income. An item of income paid directly to a type of entity specifically identified in a treaty as a resident of a treaty jurisdiction is treated as derived by a resident of that treaty jurisdiction.

If an entity is claiming treaty benefits on its own behalf, it should complete Form W-8BEN. If an interest holder in an entity that is considered fiscally transparent in the interest holder's jurisdiction is claiming a treaty benefit, the interest holder should complete Form W-8BEN on its own behalf and the fiscally transparent entity should associate the interest holder's Form W-8BEN with a Form W-8IMY completed by the entity.

That isn't the rules. It is the helpful guidance to the rules. So I still don't know.


Tax Professionals Full Employment Act

You don't understand U.S. economic history. Some years back, we had tax accountants and lawyers literally starving in the streets. The Tax Professionals Full Employment Act, by mandating obfuscatory and oxymoronic language throughout the IRS-administered tax code, has relieved these dire and tragic circumstances.

Surely you don't want to steal bread from the mouths of hungry accountants' children, do you? For that is what you are doing by trying to understand these matters by yourself.

Charles T. Betz

Strangely familiar

It reads just like the CMDBf specification! I hope it's because it mentions "items" 3 times per line just like CMDBf and not because of the clarity level...
BTW, I am one of the guilty parties in CMDBf.

the notorious William Vambenepe

yes you are already notorious around these parts :-D
Actually you are welcomed as a skeptical voice within CMDBf.

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