IRS Asked to Ease Reporting Burden in Foreign Tax Credit Rules

The IRS needs to make it easier for companies to offset U.S. taxes with foreign tax credits by simplifying final tax rules, tax practitioners and a trade group said during a hearing.

The National Foreign Trade Council and representatives from two law firms spoke to IRS officials at a Wednesday hearing via teleconference on proposed foreign tax credit rules the IRS released in December. Tax professionals have said the IRS could rewrite the rules to reduce compliance requirements and increase the availability of foreign tax credits that are essential to multinationals hoping to boost liquidity through U.S. tax savings.