The United States and Poland have signed a new income tax treaty replacing the 1974 income tax treaty. The 1974 treaty was one of the few remaining US income tax treaties that did not contain a limitation on benefits article (LOB) and accommodated international investment. As expected, the new treaty, signed on February 13, 2013, includes a modern LOB article. Unlike other recent treaties, the new US-Poland treaty does not eliminate source state taxation on intercompany dividends, certain types of interest, or royalties. For withholding provisions, the treaty will be effective the first day of the second month following the date on which the treaty enters into force. For all other taxes, the treaty will be effective for taxable periods beginning on or after the first day of January of the next taxable year following the date on which the treaty enters into force. The treaty will enter into force on the date that Poland and the United States both have notified each other that they have complied with their applicable internal procedures. The treaty does not include a transition rule. Therefore, taxpayers presently entitled to treaty benefits may lose those benefits once the treaty's provisions take effect.