Income tax treaties.

The United States is a party to a dizzying array of international agreements with other nations, including over 80 income tax treaties now in force or being negotiated. Even the best income tax advice can be thrown to the winds if the subject transaction is between taxpayers from different countries and the taxpayers fail to consider the effects of tax treaties that may exist between their nations. The language of the treaties, although a little stilted with the formulas of international legal expression, is generally understandable in context, and the goal of income tax treaties is clear: to harmonize and simplify tax laws between the two countries, promoting commerce, while avoiding double taxation and fiscal evasion. Each income tax treaty is a separate agreement between two nations who are a party to the agreement. [ABSTRACT FROM AUTHOR]