Chrysler Corporation - Page 7

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               was filed or 2 years from the time the tax was paid,                   
               whichever of such periods expires the later, * * *                     
                         *    *    *    *    *    *    *                              
                    (d) Special Rules Applicable to Income Taxes.--                   
                         *    *    *    *    *    *    *                              
                         (3) Special rules relating to foreign                        
                    tax credit.--                                                     
                              (A) Special period of                                   
                         limitation with respect to foreign                           
                         taxes paid or accrued.  If the                               
                         claim for credit or refund relates                           
                         to an overpayment attributable to                            
                         any taxes paid or accrued to any                             
                         foreign country or to any                                    
                         possession of the United States for                          
                         which credit is allowed against the                          
                         tax imposed by subtitle A in                                 
                         accordance with the provisions of                            
                         section 901 or the provisions of                             
                         any treaty to which the United                               
                         States is a party, in lieu of the                            
                         3-year period of limitation                                  
                         prescribed in subsection (a), the                            
                         period shall be 10 years from the                            
                         date prescribed by law for filing                            
                         the return for the year with                                 
                         respect to which the claim is made.                          
               Section 901(a) allows a taxpayer such as petitioner to elect           
          to credit income taxes owed to a foreign country in lieu of                 
          deducting them under section 164(a)(3).2  Respondent argues that            
          petitioner’s election was untimely.  Respondent asserts that the            
          phrases “for any taxable year” and “for such taxable year” that             

               2 While accrued foreign taxes must ultimately be paid to be            
          eligible for credit, see sec. 905(b); see also sec. 1.901-2(e),             
          Income Tax Regs., proof of payment is not at issue in this case.            

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Last modified: May 25, 2011