Ezel / IRS Rulings / 1025059
Chief Counsel Advice 1025059 Released June 25, 2010 Advice

IRS identified the applicable treaty article for a described arrangement

Apply this to your situation

This page covers one taxpayer's ruling from 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The IRS advised that a list in a new treaty protocol applied only to rules concerning contributions and undistributed earnings. It did not apply to rules concerning distributions. Based on the arrangement described in the request, the IRS concluded that Article 18(1) did not apply and that Article 15 was the applicable treaty provision.

Ruling snapshot

  • Question: Which treaty article applies to the described arrangement?
  • Outcome: Advice given
  • Key authorities: IRC § 894; treaty Articles 15 and 18(1).

Full text (IRS public release)

ID: CCA_2010052511112519 Number: 201025059
Release Date: 6/25/2010
Office: ------------
UILC: 894.11-00

From: ---------------------
Sent: Tuesday, May 25, 2010 11:11:28 AM
To: ---------------------
Cc: --------------------------------------------
Subject: treaty question

The list that you mention is from the new protocol. It is intended to apply only for purposes of the rules
relating to contributions and undistributed earnings and not for purposes of the rules relating to
distributions. Nevertheless, I think the arrangement that you describe would not fall under Article 18(1).
The applicable article would be Article 15.

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2010, and it can't be cited as precedent. Ezel checks the current Internal Revenue Code and IRS guidance and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.