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Changes to documenting and calculating the foreign tax credit

Presented By:
Robert Piwonski Lisa Roelofs Jay Woods
Date:
Thursday, Aug. 25, 2022
Time:
11 a.m. - 12 p.m. EDT
Anticipated CPE:
1, Tax
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New IRS regulations are significantly impacting the process of documenting and calculating foreign tax credit (FTC) claims for U.S. taxpayers. Our international tax experts discuss what you need to know.
Busy city view with a beautiful sun settingThe Internal Revenue Code has long permitted U.S. taxpayers to take a dollar-for-dollar credit against their taxes for qualifying taxes paid to foreign governments and localities, known as the foreign tax credit (FTC). For years, the FTC focused on certain types of income taxes, but recent IRS regulations have called into question many of the assumptions that have driven the calculation of the credit for U.S. businesses paying taxes overseas.

The updated regulations have changed what qualifies as a creditable tax, along with some additional changes that limit the ability to take the credit. Our international tax experts will walk through these changes and discuss what taxpayers need to know to stay up to date.

Learning objectives: 

  • Identify taxes that are eligible for the foreign tax credit (FTC)
  • Understand the 901 cost attribution and cost recovery rules, and the 903 withholding tax requirements
  • Develop some next steps an organization can take to help ensure its international tax plans are up to date
Plante & Moran, PLLC, is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417 or by visiting the website: nasba.org.

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