Letter: Biden Admin’s Botched Rollout of Foreign Tax Credit Regulations Threatens Double Taxation
With American businesses at risk of double taxation, Ways and Means Republicans, led by Republican Leader Rep. Kevin Brady (R-TX), raised their concerns with the rollout of the Biden Administration’s foreign tax credit (FTC) regulations.
Highlighting the “undue burdens” the Treasury Department has levied against Americans with the unclear and disruptive FTC regulations, the members urged Secretary Yellen to provide a more reasonable implementation timeline:
“Treasury’s delay in providing necessary clarifying guidance has levied undue burdens on taxpayers attempting to comply with the final regulations. Lack of clarity in the final regulations has undermined the integrity of public financial reporting and affected investment decisions. These problems are compounded each fiscal quarter that guidance is delayed and businesses and financial auditors try to guess Treasury’s final landing spot. […]
“Because of Treasury’s significant delays in providing necessary clarifying guidance, we respectfully request that Treasury extend the implementation window for the final foreign tax credit regulations.”
CLICK HERE to read the full letter.
- On June 8, 2022, in a full committee hearing with Treasury Secretary Janet Yellen, members from both sides of the aisle raised their concerns with the Administration’s FTC regulations.
- In April 2022, 10 Ways and Means members, led by Rep. Kevin Hern (R-OK) sent a bipartisan letter to the Treasury detailing their concerns with the regulations and urging an extension of the implementation timeline.