Taxes Remitted to the U.S. Virgin Islands in Error Were Not Compulsory Payments

One of the common issues that comes up on audit is whether payments to foreign governments are creditable for purposes of the U.S. foreign tax credit (“FTC”). This often hinges on whether the payments were “compulsory.” There is little guidance as to what payments are compulsory. The court recently addressed this issue in Vento v. […]

The post Taxes Remitted to the U.S. Virgin Islands in Error Were Not Compulsory Payments appeared first on Houston Tax Attorney: Texas Lawyer.

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