Possible Foreign Tax Credit Fix to Come After Minimum Tax Guidance

The IRS plans to go ahead with guidance on how foreign tax credit regulations interact with the new global minimum tax even though it’s still considering whether and how those regulations might be modified, an IRS official said Monday.

But that approach of clarifying the currently-suspended foreign tax credit rules even though they might be modified further is “something that is on our mind,” said Hayley Rassuchine, an attorney in the IRS Office of Chief Counsel. She was speaking at a Palo Alto, Calif., tax conference sponsored by the Tax Executives Institute and San Jose State University.

The guidance ...