- 8 -
appear in section 901(a) refer to petitioner’s 1980, 1981, and
1982 taxable years rather than petitioner’s 1985 taxable year.
Petitioner argues that its election was timely. Because section
904(c) allows a taxpayer to carry over a foreign tax credit for
up to 5 years, petitioner asserts, section 901(a), when read in
the light of section 6511(d)(3)(A), generally allows a taxpayer
up to 15 years to elect or change its election under section
901(a). Petitioner concludes that the relevant phrases refer to
the year for which the overpayment is claimed on account of the
foreign taxes; here, 1985. Petitioner asserts that its
conclusion comports with Congress’ intent for section 901(a),
i.e., to avoid subjecting a taxpayer’s foreign earnings to
taxation by both the foreign country and the United States, and
that its conclusion is consistent with the application of section
6511(d)(3)(A).
We agree with respondent that the 10-year period under
section 901(a) is measured from the years for which P elected the
foreign tax credits; i.e., 1980, 1981, and 1982.3 We read the
3 At the outset, we note that petitioner relies in part on
legislative actions (including the release of committee reports)
that occurred many years after the enactment of sec. 901(a) to
construe the legislative intent underlying that section. We do
not do likewise. As we stated in Central Reserve Life Corp. &
Subs. v. Commissioner, 113 T.C. 231, 238 (1999) (citations and
quotation marks omitted):
It is emphatically the province and duty of the
judicial department to say what the law is, and the
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011