This Comment argues that Section 864(c)(6) taxes the deferred income of all nonresident aliens, whether independent contractors or dependent employees, by analyzing the tax treatment of nonresident aliens subject to the Dutch and Swiss Treaties. Part I discusses the general rules for taxing aliens for compensation earned in the United States. Part II discusses TAMRA's amendments to the Code sections that are relevant to tax treaties. Part III argues that while the language of Section 864(c)(6) is ambiguous, its legislative history and the principles of other Code sections indicate that Section 864(c)(6) provides for a net tax of a nonresident alien's deferred compensation. This Comment concludes that the United States should tax deferred compensation of nonresident aliens on a net basis, regardless of whether the taxpayer is an independent contractor or a dependent employee.
The Taxation of Deferred Compensation Under I.R.C. § 864(c)(6) and Income Tax Treaties: A Rose is Not Always a Rose,
19 Fordham Int'l L.J. 736
Available at: http://ir.lawnet.fordham.edu/ilj/vol19/iss2/26