5191 Natorp Boulevard Mason, OH 45040 October 23, 2020 Ms. Sonja Bishop Tile, Inc. 100 International Drive Tampa, FL 33620 Dear Ms. Bishop: This letter is in response to your request about information concerning a conflict between a U.S. treaty with Spain and a Section of the Internal Revenue Code (IRC). The major reasons for treaties between the United States and certain foreign countries is to eliminate double taxation and to render mutual assistance in tax enforcement. IRC 5 7852(d) provides that if a U.S. treaty is in conflict with a provision in the IRC, neither will take general precedence Rather, the more recent of the two will have precedence. In your case, the treaty with Spain takes precedence over the IRC Section A taxpayer must disclose on the tax return any positions where a treaty overrides a tax law. There is a penalty (per failure) for individuals who fail to disclose and a penalty (per failure) for corporations that fail to disclose. Previous Next > 5191 Natorp Boulevard Mason, OH 45040 October 23, 2020 Ms. Sonja Bishop Tile, Inc. 100 International Drive Tampa, FL 33620 Dear Ms. Bishop: This letter is in response to your request about information concerning a conflict between a U.S. treaty with Spain and a Section of the Internal Revenue Code (IRC). The major reasons for treaties between the United States and certain foreign countries is to eliminate double taxation and to render mutual assistance in tax enforcement. IRC 5 7852(d) provides that if a U.S. treaty is in conflict with a provision in the IRC, neither will take general precedence Rather, the more recent of the two will have precedence. In your case, the treaty with Spain takes precedence over the IRC Section A taxpayer must disclose on the tax return any positions where a treaty overrides a tax law. There is a penalty (per failure) for individuals who fail to disclose and a penalty (per failure) for corporations that fail to disclose. Previous Next >