IRS Calls Treaty-Based Positions for Malta Pensions Listed Transactions


For lovers of tax controversy, disputes between taxpayers and the IRS over Malta pension plans should be legendary. In short, taxpayers followed the letter of the law (i.e., the specific terms of the US-Malta treaty), the IRS detested the result, and now the IRS is implementing aggressive measures, including some that supposedly have retroactive effect. This article explores general U.S. tax treatment of foreign retirement plans, key concepts of the treaty, positions claimed by U.S. taxpayers, initial enforcement actions by the IRS, significance of the Competent Authority Arrangement, effect of the Proposed Regulations on various persons, and potential paths for taxpayers at this juncture.

Read the full article here.

About Hale E. Sheppard
HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a partner in the Tax Controversy Section of Chamberlain Hrdlicka.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.

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