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office or other fixed place of business in the United States"
unless the agent performs specified duties. The physical
location of the office of an agent, however, is only one factor
of five provided in section 1.864-7, Income Tax Regs., to be
considered in such a determination. Section 1.864-7(d)(1)(i),
Income Tax Regs., expressly provides that it applies for purposes
of section 864(c)(4)(B) and section 864(c)(4)(B)(iii), and the
regulations thereunder, but it does not expressly provide that it
is to apply for purposes of section 864(b)(2)(C). Nonetheless,
because both parties argue their respective positions based on
section 1.864-7(d)(1)(i), Income Tax Regs., and because those
regulations construe the phrase "office or other fixed place of
business in the United States", which is also found in section
864(b)(2)(C), we use those regulations in the instant case as a
framework to decide whether LTD has "an office or other fixed
place of business in the United States" for purposes of section
864(b)(2)(C).
Section 1.864-7(a)(2), Income Tax Regs., provides that, in
determining whether a taxpayer has "an office or other fixed
place of business in the United States" within the meaning of the
statute, "due regard shall be given to the facts and
circumstances of each case, particularly to the nature of the
taxpayer's trade or business and the physical facilities actually
required by the taxpayer in the ordinary course of the conduct of
his trade or business." The factors to consider include: (1)
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