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Calling for Clarity On NRAs' Partnership SitusCalling for Clarity On NRAs' Partnership Situs
There are various theories proposed for determining situs of partnership interests for U.S. federal estate tax purposes when those interests are held by a non-resident alien (NRA)1 and the partnership is a domestic (U.S.) partnership or holds U.S.-situs assets or conducts business in the United States.2 When no applicable bilateral estate tax treaty speaks to the issue,3 there's a good deal of uncertainty
Dina Kapur Sanna
There are various theories proposed for determining situs of partnership interests for U.S. federal estate tax purposes when those interests are held by a non-resident alien (NRA)1 and the partnership is a domestic (U.S.) partnership or holds U.S.-situs assets or conducts business in the United States.2 When no applicable bilateral estate tax treaty speaks to the issue,3 there's a good deal of uncertainty about situs due to a lack of guidance in the Internal Revenue Code and Treasury regulations. The Internal Revenue Service's position, in an old revenue ruling, is that a partnership interest is a U.S.-situs asset if the partnership is engaged in business in the United States.4 But the ruling is based on scant reasoning a...
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