Daily Tax Update - September 10, 2015: IRS Releases International Practice Units on Inbound Liquidations

IRS Releases International Practice Units on Inbound Liquidations:  The IRS recently released two international practice units on inbound liquidations and the identification and pricing of intangibles and services associated with the sale of tangible property. International practice units provide IRS examiners with guidance on general international tax concepts and transactions.

TIGTA Report Recommends Improvements to Verify Taxpayer Claims for Social Security Tax Exemption Under Totalization Agreements:  In a July 17, 2015 report released today, the Treasury Inspector General for Tax Administration (TIGTA) recommended that the IRS coordinate with the Social Security Administration to identify U.S. citizens and resident aliens working in a foreign country and resident aliens working in the United States who may have improperly claimed exemption from U.S. Social Security taxes under a Totalization Agreement.  The United States has Totalization Agreements with 24 countries to eliminate double taxation with respect to social security taxes.