ADVANCE RULINGS RELATING TO FOREIGN INCOME, FOREIGN TAXPAYERS, AND THE FOREIGN TAX CREDIT

SECTION 1. BACKGROUND

Rev. Proc. 83-22, 1983-1 C.B. 680, sets forth areas in which advance rulings or determination letters will not be issued by the Internal Revenue Service. Section 4 of Rev. Proc. 83-22 is entitled "Areas In Which Rulings Or Determination Letters Will Not Ordinarily Be Issued."

SECTION 2. PURPOSE

Rev. Proc. 83-22 is hereby amended by adding to section 4 the following new sections:

Section 864.--Definitions--Whether a taxpayer is engaged in trade or business within the United States.

Section 894.--Income Affected by Treaty.--Whether a taxpayer has a permanent establishment in the United States for the purpose of any United States Income Tax Treaty.

Section 901.--Taxes of Foreign Countries and of Posessions of United States.--Whether a person claiming credit has established, based on all of the relevant facts and circumstances, the amount, if any, paid by the dual capacity taxpayer pursuant to the qualifying levy, that is not paid in exchange for a specific economic benefit. Section 1.901-2A(c)(2) of the regulations.

SECTION 3. EFFECTIVE DATE

This revenue procedure will apply to all ruling requests on hand in the National Office on February 27, 1984, the date of publication of this revenue procedure in the Internal Revenue Bulletin, as well as to requests received thereafter.

SECTION 4. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 83-22 is amplified.