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26 U.S.C. § 905 — Applicable rules
Federal law — U.S. Code and appendices · legal_authorities
**(a) Year in which credit taken** The credits provided in this subpart may, at the option of the taxpayer and irrespective of the method of accounting employed in keeping his books, be taken in the year in which the taxes of the foreign country or the possession of the United States accrued, subject, however, to the conditions prescribed in subsection (c). If the taxpayer elects to take such credits in the year in which the taxes of the foreign country or the possession of the United States accrued, the credits for all subsequent years shall be taken on the same basis, and no portion of any such taxes shall be allowed as a deduction in the same or any succeeding year.
**(b) Proof of credits** The credits provided in this subpart shall be allowed only if the taxpayer establishes to the satisfaction of the Secretary—
(1) the total amount of income derived from sources without the United States, determined as provided in part I,
(2) the amount of income derived from each country, the tax paid or accrued to which is claimed as a credit under this subpart, such amount to be determined under regulations prescribed by the Secretary, and
(3) all other information necessary for the verification and computation of such credits.
**(c) Adjustments to accrued taxes**
(1) **In general** — If—
(A) accrued taxes when paid differ from the amounts claimed as credits by the taxpayer,
(B) accrued taxes are not paid before the date 2 years after the close of the taxable year to which such taxes relate, or
(C) any tax paid is refunded in whole or in part,
the taxpayer shall notify the Secretary, who shall redetermine the amount of the tax for the year or years affected.
(2) **Special rule for taxes not paid within 2 years**
(A) *In general* — Except as provided in subpa
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Source location: Title 26, Chapter 1, § 905; chapter-001-normal-taxes-and-surtaxes.md
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**(a) Year in which credit taken** The credits provided in this subpart may, at the option of the taxpayer and irrespective of the method of accounting employed in keeping his books, be taken in the year in which the taxes of the foreign country or the possession of the United States accrued, subject, however, to the conditions prescribed in subsection (c). If the taxpayer elects to take such credits in the year in which the taxes of the foreign country or the possession of the United States accrued, the credits for all subsequent years shall be taken on the same basis, and no portion of any such taxes shall be allowed as a deduction in the same or any succeeding year.
**(b) Proof of credits** The credits provided in this subpart shall be allowed only if the taxpayer establishes to the satisfaction of the Secretary—
(1) the total amount of income derived from sources without the United States, determined as provided in part I,
(2) the amount of income derived from each country, the tax paid or accrued to which is claimed as a credit under this subpart, such amount to be determined under regulations prescribed by the Secretary, and
(3) all other information necessary for the verification and computation of such credits.
**(c) Adjustments to accrued taxes**
(1) **In general** — If—
(A) accrued taxes when paid differ from the amounts claimed as credits by the taxpayer,
(B) accrued taxes are not paid before the date 2 years after the close of the taxable year to which such taxes relate, or
(C) any tax paid is refunded in whole or in part,
the taxpayer shall notify the Secretary, who shall redetermine the amount of the tax for the year or years affected.
(2) **Special rule for taxes not paid within 2 years**
(A) *In general* — Except as provided in subparagraph (B), in making the redetermination under paragraph (1), no credit shall be allowed for accrued taxes not paid before the date referred to in subparagraph (B) of paragraph (1).
(B) *Taxes subsequently paid* — Any such taxes if subsequently paid—
(i) shall be taken into account for the taxable year to which such taxes relate, and
(ii) shall be translated as provided in section 986(a)(2)(A).
(3) **Adjustments** — The amount of tax (if any) due on any redetermination under paragraph (1) shall be paid by the taxpayer on notice and demand by the Secretary, and the amount of tax overpaid (if any) shall be credited or refunded to the taxpayer in accordance with subchapter B of chapter 66 (section 6511 et seq.).
(4) **Bond requirements** — In the case of any tax accrued but not paid, the Secretary, as a condition precedent to the allowance of the credit provided in this subpart, may require the taxpayer to give a bond, with sureties satisfactory to and approved by the Secretary, in such sum as the Secretary may require, conditioned on the payment by the taxpayer of any amount of tax found due on any such redetermination. Any such bond shall contain such further conditions as the Secretary may require.
(5) **Other special rules** — In any redetermination under paragraph (1) by the Secretary of the amount of tax due from the taxpayer for the year or years affected by a refund, the amount of the taxes refunded for which credit has been allowed under this section shall be reduced by the amount of any tax described in section 901 imposed by the foreign country or possession of the United States with respect to such refund; but no credit under this subpart, or deduction under section 164, shall be allowed for any taxable year with respect to any such tax imposed on the refund. No interest shall be assessed or collected on any amount of tax due on any redetermination by the Secretary, resulting from a refund to the taxpayer, for any period before the receipt of such refund, except to the extent interest was paid by the foreign country or possession of the United States on such refund for such period.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definition of surviving spouse**
(1) **In general** — For purposes of section 1, the term “surviving spouse” means a taxpayer—
(A) whose spouse died during either of his two taxable years immediately preceding the taxable year, and
(B) who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent (i) who (within the meaning of section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) is a son, stepson, daughter, or stepdaughter of the taxpayer, and (ii) with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151.
(2) **Limitations** — Notwithstanding paragraph (1), for purposes of section 1 a taxpayer shall not be considered to be a surviving spouse—
(A) if the taxpayer has remarried at any time before the close of the taxable year, or
(B) unless, for the taxpayer’s taxable year during which his spouse died, a joint return could have been made under the provisions of section 6013 (without regard to subsection (a)(3) thereof).
(3) **Special rule where deceased spouse was in missing status** — If an individual was in a missing status (within the meaning of section 6013(f)(3)) as a result of service in a combat zone (as determined for purposes of section 112) and if such individual remains in such status until the date referred to in subparagraph (A) or (B), then, for purposes of paragraph (1)(A), the date on which such individual died shall be treated as the earlier of the date determined under subparagraph (A) or the date determined under subparagraph (B):
(A) the date on which the determination is made under [section 556 of title 37](https://uscode.house.gov/view.xhtml?req=granuleid:
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2
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Federal law — U.S. Code and appendices · legal_authorities
If a domestic corporation chooses to have the benefits of subpart A of part III of subchapter N (relating to foreign tax credit) for any taxable year, an amount equal to the taxes deemed to be paid by such corporation under subsections (a) and (d) of section 960 (determined without regard to the phrase “90 percent of” in subsection (d)(1) thereof) for such taxable year shall be treated for purposes of this title (other than sections 245 and 245A) as a dividend received by such domestic corporation from the foreign corporation.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 78
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Rules for actual distributions and certain deemed distributions**
(1) **In general** — Any actual distribution (other than a distribution described in paragraph (2) or to which section 995(c) applies) to a shareholder by a DISC (or former DISC) which is made out of earnings and profits shall be treated as made—
(A) first, out of previously taxed income, to the extent thereof,
(B) second, out of accumulated DISC income, to the extent thereof, and
(C) finally, out of other earnings and profits.
(2) **Qualifying distributions** — Any actual distribution made pursuant to section 992(c) (relating to distributions to meet qualification requirements), and any deemed distribution pursuant to section 995(b)(1)(G) (relating to foreign investment attributable to producer’s loans), shall be treated as made—
(A) first, out of accumulated DISC income, to the extent thereof,
(B) second, out of the earnings and profits described in paragraph (1)(C), to the extent thereof, and
(C) finally, out of previously taxed income.
In the case of any amount of any actual distribution to a C corporation made pursuant to section 992(c) which is required to satisfy the condition of section 992(a)(1)(A), the preceding sentence shall apply to 16/17ths of such amount and paragraph (1) shall apply to the remaining 1/17th of such amount.
(3) **Exclusion from gross income** — Amounts distributed out of previously taxed income shall be excluded by the distributee from gross income except for gains described in subsection (e)(2), and shall reduce the amount of the previously taxed income.
**(b) Ordering rules for losses** If for any taxable year a DISC, or a former DISC, incurs a deficit in earnings and profits, such deficit shall be chargeable—
(1) first, to earnings and profi
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 996
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Federal law — U.S. Code and appendices · legal_authorities
Page 2141
TITLE 26—INTERNAL REVENUE CODE
§ 905
or credit taken into account prior to Mar. 23, 2018, for
purposes of determining liability for tax for periods
ending after Mar. 23, 2018, see section 401(e) of Pub. L.
115–141, set out as a note under section 23 of this title.
For provisions that nothing in amendment by section
11801(a)(31) of Pub. L. 101–508 be construed to affect
treatment of certain transactions occurring, property
acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after
Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set
out as a note under section 45K of this title.
APPLICABILITY
OF CERTAIN AMENDMENTS
BY PUB. L.
99–514
IN
RELATION
TO
TREATY
OBLIGATIONS
OF
UNITED STATES
For
applicability
of
amendments
by
sections
701(e)(4)(H) and 1201(a), (b), (d)(1)–(3) of Pub. L. 99–514
notwithstanding any treaty obligation of the United
States in effect on Oct. 22, 1986, and for nonapplication
of amendment by section 1211(b)(3) of Pub. L. 99–514 to
the extent application of such amendment would be
contrary to any treaty obligation of the United States
in effect on Oct. 22, 1986, with provision that for such
purposes any amendment by title I of Pub. L. 100–647 be
treated as if it had been included in the provision of
Pub. L. 99–514 to which such amendment relates, see
section 1012(aa)(2)–(4) of Pub. L. 100–647, set out as a
note under section 861 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1989
For provisions directing that if any amendments
made by subtitle A or subtitle C of title XI [§§ 1101–1147
and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L.
99–514 require an amendment to any plan,
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 905
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