FROM THE OFFICE OF PUBLIC AFFAIRS

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Today, the Treasury Department and the IRS issued guidance concerning the application of the U.S.-Germany income tax treaty to a nonresident partner in a service partnership that conducts activities in the United States.   Revenue Ruling 2004-3 makes clear that a nonresident partner is subject to U.S. income taxation on his share of income from the partnership to the extent that such income is attributable to the partnership’s activities in the United States, without regard to whether the partner performs services in the United States.  The guidance in this revenue ruling also applies in the case of other U.S. income tax treaties that contain applicable provisions regarding independent personal services like the provisions in the U.S.-Germany income tax treaty. 

Related Documents:

• The text of the Revenue Ruling