August 11, 2024 Tax Court holds that non-US partnership is liable for withholding taxes for 2009 tax year after finding same for 2006-2008 in earlier proceeding In YA Global Investments LP v. Commissioner, T.C. Memo. 2024-78 (Aug. 8, 2024), the Tax Court held that a foreign partnership was engaged in a US trade or business and is liable for withholding tax for tax year 2009 under IRC Section 1446 on the portion of its taxable income that was effectively connected with that trade or business and allocable to foreign partners. The Tax Court also held that the withholding tax liability should take into account the foreign special purpose vehicles' shares of the partnership' effectively connected taxable income. The Tax Court had previously upheld the IRS's claims for tax years 2006 - 2008 (see Tax Alert 2023-1943). A Tax Alert is forthcoming.
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