Daily Tax Report ®

Foreign Tax Credit Rules Answer Pressing Questions

Nov. 29, 2018, 9:01 AM

New rules that explain how companies can classify their overseas income and allocate expenses to get foreign tax credits offer some good news for multinationals.

The Internal Revenue Service aimed to ease some of companies’ concerns with the 2017 tax law.

In essence, the agency said “we’re not going to give you the solution you wanted,” said Jeffrey S. Korenblatt, a partner at Reed Smith LLP, told Bloomberg Tax Nov. 28. “But we’ll meet you part of the way.”

The Nov. 28 proposed regulations (REG-105600-18) answered a key question, confirming how much multinational companies can offset the...

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