US foreign tax credit claims skyrocket

The Internal Revenue Service has reported a substantial increase in the number of US businesses and individuals claiming foreign tax credits on their returns.

Doug Shulman, commissioner of the IRS, said the 133% increase in the number of individuals claiming the credit between 2000 and 2007 was 'eye-popping', according to tax-news.com

During the same period, 71% of US companies claimed foreign tax credits.

He said the figures reflect the need for the US and global tax administrations to press on with efforts to police international tax.

'More businesses and individuals are using the global capital markets as a vehicle for investment, illustrating the opportunities presented by the development of capital markets, but also some of the challenges. Regulatory bodies and governments worldwide are wrestling with complex challenges without easy answers,' he said.

Further Reading:

IRS triumphs in transfer pricing dispute

US urged to abandon UBS tax case