Tax News

CCH (cch.taxgroup.com) reports:

The IRS has obsoleted Rev. Rul. 75-425, 1975-2 CB 291, since it is no longer determinative. Rev. Rul. 75-425 provided guidance regarding the effect of an alien individual, employed by a foreign government or international organization in the United States, signing a waiver under section 247(b) of the Immigration and Nationality Act. Generally, an alien individual employed by a foreign government or international organization who files the waiver is no longer entitled to exemption from income tax under Code Sec. 893 with respect to compensation received from such foreign government or international organization. However, the waiver has no effect on any income tax exemption derived from the provisions of an income tax treaty, consular agreement, or other international agreement to the extent the application of the exemption is not dependent upon the internal revenue laws of the United States. Rev. Rul. 75-425 also sets forth the application of the above rules with respect to a list of foreign countries with which the United States had an income tax treaty or consular agreement and a list of international organizations with respect to which the United States was a signatory to the international agreement creating the international organization(s) at the time of publication of the revenue ruling. Because many of those income tax treaties, consular agreements, and international agreements have been modified, superseded, or are no longer in force, and because the facts on which the ruling position was based no longer exist or are not sufficiently described to permit clear application of the currently applicable legal provisions and agreements, the IRS has concluded that Rev. Rul. 75-425 is no longer determinative with respect to foreign government and international organization employees of any foreign country.
Rev. Rul. 2007-60, 2007FED ¶46,616
Other References:
Code Sec. 893
CCH Reference - 2007FED ¶27,050.47
CCH Reference - 2007FED ¶27,622.1095
Tax Research Consultant
CCH Reference - TRC INTL: 12,150