Josephine is considering taking a 6-month rotation in Paris for her job.Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Question

Quizplus · Accepted Answer

Tax treaties are agreements between two countries that address the tax treatment of residents and citizens of each country, as well as transactions between the two countries. Given Josephine's situation, a tax treaty between the United States and France would be useful in determining the tax consequences of her job in Paris. The tax treaty may provide rules to eliminate double taxation, provide for tax credits or exemptions, or allocate taxing rights between the United States and France.

Josephine Is Considering Taking a 6-Month Rotation in Paris for Her