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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