The New Tax Laws Governing Foreign Persons or Entities Sale of U.S. Partnership Interests
By Anthony Diosdi The passage of the Tax Cuts and Jobs Act brought about major changes to the Internal Revenue Code and international tax policy. Among one of many changes the Tax Cuts and Jobs Act made to tax law relates to the handling of the sale of partnership interests by foreign persons. The Tax Cuts and Jobs Act added two new sections to the Internal Revenue Code, Section 864(c)(8) and Section 1446(f). Prior to the enactment of the Tax Cuts and Jobs Act, withholding had not been required for the sale of a partnership interest by a foreign person. That all changed with the Tax Cuts and Jobs Act. Now, a purchaser of a partnership interest that is being sold by a foreign person is generally required to withhold…