CCA 201028038: Chief Counsel identified the treaty article that most likely governed pension income

Plain-English summary

Chief Counsel Advice considered which article of an unnamed income tax treaty applied to pension or similar remuneration. It stated that Article 3(2) would apply the U.S. definition of “pensions and other similar remuneration.” Although Article 18(1) was a possible argument, the advice concluded that, based on the information available, Article 15(1) was the better view. The advice did not identify the taxpayer or express a broader conclusion beyond the question presented.

Ruling snapshot

• Question: Which treaty article governed the pension or similar remuneration described in the request?
• Outcome: advice given
• Key authorities: IRC § 894; treaty Articles 3(2), 15(1), and 18(1)

Full text (IRS public release)

ID: CCA_2010061408375619 Number: 201028038
Release Date: 7/16/2010
Office: ------------
UILC: 894.11-00

From: ---------------------
Sent: Monday, June 14, 2010 8:37:59 AM
To: --------------------------------------------------------------------
Cc: ---------------------------------------------------------------------------------------------------------------------------
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Subject: Treaty question

Under Art 3(2), the U.S. definition of "pensions and other similar remuneration" would
apply. There's an argument that Art 18(1) might apply. However, based on the
information we have, I think the much better view is that Art 15(1) applies.

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