[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5754 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5754

To amend the Internal Revenue Code of 1986 to provide that the foreign 
  tax credit not be redetermined with respect to refunds of unlawful 
   foreign taxes to taxpayers who successfully challenge those taxes.


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                    IN THE HOUSE OF REPRESENTATIVES

                           November 14, 2002

 Mr. Ramstad introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that the foreign 
  tax credit not be redetermined with respect to refunds of unlawful 
   foreign taxes to taxpayers who successfully challenge those taxes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Tax Credit Revenue 
Enhancement Act of 2002''.

SEC. 2. FOREIGN TAX CREDIT NOT REDETERMINED FOR TAXPAYER SUCCESSFULLY 
              CHALLENGING UNLAWFUL FOREIGN TAX.

    (a) In General.--Subsection (c) of section 905 of the Internal 
Revenue Code of 1986 (relating to adjustments to accrued taxes) is 
amended by adding at the end the following new paragraph:
            ``(6) Exception for taxpayers successfully challenging 
        unlawful taxes.--Paragraph (1) shall not apply to any taxpayer 
        to whom a tax is refunded in whole or in part if, pursuant to 
        an action brought by the taxpayer, such refund results from a 
        determination by a court of competent jurisdiction in the 
        country with respect to which such tax was imposed that such 
        tax is unlawful.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to refunds received in taxable years beginning after December 31, 2002.
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