Treasury Mulling a New Foreign Tax Credit Rule Framework

The Treasury Department is still mulling how to tweak final foreign tax credit regulations that are currently on hold following companies’ and tax practitioners’ concerns about compliance, a Treasury official said Monday.

The department was “still considering how to address” the foreign tax credit rules, said Isaac Wood, attorney-advisor in Treasury’s Office of Tax Policy, speaking at a Tax Executives Institute Midyear Conference. He added the government was debating between “sticking with the framework” of the regulations it issued in early 2022 “and addressing the issues that have arisen,” or “coming up with a new framework.”

However, he said, “no ...