FROM THE OFFICE OF PUBLIC AFFAIRS To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. July 27, 2004 Treasury and IRS Issue Regulations on the Foreign Tax Credit Today Treasury and the IRS issued temporary and proposed regulations regarding the treatment of charitable deductions for foreign tax credit purposes. The new rules adopt a simpler and more favorable method of allocating and apportioning charitable deductions than the methods in current regulations or in regulations that were proposed in 1991. Generally, the new rules provide that a contribution that is deductible pursuant to the Internal Revenue Code is allocated and apportioned solely to U.S.-source income for foreign tax credit purposes. "These new regulations provide clear rules for the treatment of charitable contributions," said Greg Jenner, Acting Assistant Secretary for Tax Policy. "By adopting the straightforward approach of allocating contributions that are deductible for A taxpayer generally may deduct a contribution made to a charitable organization provided that the contribution is to be used in the
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