SECTION 222 OF THE REVENUE ACT OF 1926

CREDIT FOR TAXES IN CASE OF INDIVIDUALS

Suc. 222. (a) The tax computed under Parts I
and II of this title shall be credited with:

(1) In the case of a citizen of the United States
the amount of any income, war-profits, and excess-
profits taxes paid or accrued during the taxable year
to any foreign country or to any possession of the
United States; and

(2) In the case of a resident of the United States,
the amount of any such taxes paid or accrued during
the taxable year to any possession of the United
States; and

(3) In the case of an alien resident of the United
States, the amount of any such taxes paid or accrued
during the taxable year to any foreign country, if
the foreign country of which such alien resident is a
citizen or subject, in imposing such taxes, allows
a similar credit to citizens of the United States resid-
ing in such country; and

(4) In the case of any such individual who is a
member of a partnership or a beneficiary of an
estate or trust, his proportionate share of such taxes
of the partnership or the estate or trust paid or
accrued during the taxable year to a foreign coun-
try or to any possession of the United States, as the
case may be.

(5) The above credits shall not be allowed in the
case of a citizen entitled to the benefits of section
262; and in no other case shall the amount of credit
taken under this subdivision exceed the same pro-
portion of the tax (computed on the basis of the
taxpayer’s net income without the deduction of any
income, war-profits, or excess-profits tax any part
of which may be allowed to him as a credit by this
section), against which such credit is taken, which
the taxpayer’s net income (computed without the
deduction of any such income, war-profits, or excess-
profits tax) from sources without the United States
bears to his entire net income (computed without
such deduction) for the same taxable year.

(6) If accrued taxes when paid differ from the
amounts claimed as credits by the taxpayer, or if
any tax paid is refunded in whole or in part, the
taxpayer shall notify the Commissioner, who shall
redetermine the amount of the tax due under Parts
I and II of this title for the year or years affected,
and the amount of tax due upon such redetermina-
tion, if any, shall be paid by the taxpayer upon
notice and demand by the collector, or the amount
of tax overpaid, if any, shall be credited or refunded
to the taxpayer in accordance with the provisions of
section 281. In the case of such a tax accrued but
not paid, the Commissioner as a condition preced-
ent to the allowance of this credit may require the
taxpayer to give a bond with sureties satisfactor
toand to be approved by the Commissioner in suc
sum as the Commissioner may require, conditioned
upon the payment by the taxpayer of any amount
of tax found due upon any such redetermination;
and the bond herein prescribed shall contain such
further conditions as the Commissioner may require.

(c) The credits provided for in subdivision (a) of
this section 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 subdivision (5) of this sec-
tion. 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 upon
the same basis.

(d) These credits shall be allowed only if the
taxpayer furnishes evidence satisfactory to the Com-
missioner showing the amount of income derived
from sources without the United States, and all
other information necessary for the verification and
computation of such credits.

INSTRUCTIONS

Wuen Crepir ror Taxes May sy Taxen.—The credit for taxes provided by section 222 (a) may
ordinarily be taken either in the return for the year in which the taxes accrued or in which the taxes were
paid, dependent upon whether the accounts of the taxpayer are kept and his returns filed upon the accrual
basis or upon the cash receipts and disbursements basis. Section 222 (c) allows the taxpayer, at his option
and irrespective of the method of accounting employed in keeping his books, to take such credit for taxes as
may be allowable in the return for the year in which the taxes accrued. An election thus made under this
section or under section 222 (c) of the Revenue Act of 1924 must be followed in returns for all subsequent.

years.

1.8, covansnese raisiNe OFFICE: 1s? 214493


rm 1116
‘U.S, INTERNAL REVENUE

CLAIM FOR CREDIT ON INDIVIDUAL INCOME TAX RETURN FOR TAXES PAID OR ACCRUED
TO A FOREIGN COUNTRY OR A POSSESSION OF THE UNITED STATES

TO BE FILED BY AN INDIVIDUAL, PARTNERSHIP, OR FIDUCIARY
For Taxable Year 1927

‘To be filled in if claimant is an individual

Claim for eredit is hereby made by the taxpayer named above, who is a citizen or subject of...

and is a resident of _.. , on the attached income tax return, which is based on

income . . for the taxable year begun. , 192, and ended . 192
(Received or accrued)

for taxes... .!, as follows:

(Paid or acoraedy

SCHEDULE A—Tax Paid or Accrued to a Possession of the United States?

Character of tax -...

Name of possession of U. 8. -.

(income, war profits, or excess profits)

Statute imposing tax ..

(io be named fully and clearly so as to be easily identified)

Date of acerual -. .. Date of payment (if paid)

(To be given even if claim is based on accrual)

(To be given even if claim
1. Amount of tax® (evidenced by attached receipt or return) ..

based on payment)

vhich (converted

(in foreign money)

at an exchange rate of ... ..--*) equals in dollars ..

2. Income from sources in this possession which (converted at an exchange

rate of .... _-5) equals in dollars (Reported on attached Form 1040, as Item ...

SCHEDULE B—Tax Paid or Accrued to a Foreign Country®

Name of foreign country Character of tax...

(ncome, war profits, or excess profits)

Statute imposing tax .

(Go be named fuily and clearly so a8 to be easily identified)

Date of accrual __ Date of payment (if paid) —. -
‘ment) (Po be given even if claim is based on accrual)

1. Amount of tax’ (evidenced by attached receipt or return) __ 4, which (converted at an.

exchange rate of 5) equals in dollars ..

2. Income from sources in this foreign country -.
Gin foreign money)

..°) equals in dollars (Reported on attached Form 1040, as Item

rate of ...

SCHEDULE C—Tax Withheld Under a Law of a Foreign Country® or Possession of the United States?

Character of tax __.

Name of foreign country or possession of U.S. «
(Income, war profits, or excess profits)

Statute imposing tax ..

‘0 be named fully and clearly so as to be easily identified)
Date of withholding

Name of withholding agent -..

1. Amount of tax withheld (evidenced by attached receipts or statement from withholding agent) 4,
(ln forvign taoneyy

which (converted at an exchange rate of .. 5) equals in dollars...

2. Income from sources in above-named country or possession, which is not included in any other schedule on

this form ..... ...‘, which (converted at an exchange rate of -... 5)
ig v)
equals in dollars (Reported on attached Form 1040, as Item -_....-..) -
(See References on page 2) 214493

qa)


SCHEDULE D—Income from Sources Without the United States on which no Income or Profits Taxes Were Imposed

1. Name of country _

2. Amount of income ..

4, which (converted at an exchange rate

(in foreign money)

of .. 5) equals in dollars (Reported on attached Form 1040, as Item -..

SCHEDULE E—Tax Paid or Accrued to a Foreign Country or a Possession of the United States by a Partnership, Estate, or
Trust, in which Claimant has an Interest

Partnership, estate, or trust ..

(Wane) (Address)

Fiduciary (if estate or trust) -.

(Name) (Address)
Character and extent of claimant’s interest in partnership, estate, or trust

Character of tax -.
(Income, war profits, or excess profits)

Name of foreign country or possession of U. 8

Statute imposing tax

(o be named fully and clearly so as to be casily identified)

.- Date of payment (if paid) - 7 -.
(To be given even if ciaim is based on payment) (To be given even if claim is based on accrual)

1. Total tax paid by partnership or fiduciary . 4, which (converted at an exchange rate of

Date of accrual

(in foreign money)

5) equals in dollars ..

2. Claimant’s share of such tax as reported on partnership or fiduciary return .

3. Total net income derived from partnership or fiduciary (Reported on Form 1040, as Item 4).

4, That portion of such income which was derived from sources without the United States -..

‘To be filled in if the claimant is a partnership or fiduciary

SCHEDULE F—Tax Paid or Accrued to a Foreign Country or Possession of the United States by a Partnership, Estate, or Trust

Partnership, estate, or trust ..

(Name) (Address)

Fiduciary (if estate or trust) —.

(Name) (Address)

- return is based on income
(Partnership or fiduciary) (Received or accrued)

., 192, and ended . _-, 192

The attached .. during the taxable

year begun ..

Name of foreign country or possession of U. S.

. Character of tax
(ineome, war profits, or excess profits)

Statute imposing tax

(To be namied fully and clearly so as to be easily identified)

Date of accrual __. Date of payment (if paid) _.

(fo be given even if claim is based on payment) — (Go be given even if claim is based on accrual)

1. Total amount of this tax payment or accrual (evidenced by attached receipt or return) . a4,
(i ioreign money)

which (converted at an exchange rate of _. 5) equals in dollars -..

2. Total net income reported on attached partnership or fiduciary return __.

3. That portion of such income which was derived from sources without the United States -..

REFERENCES,

1If attached income return is based on income “accrued,” or you elect under Section 222\(c) to claim credit for taxes accrued, write “accrued” in the space provided.
(See Section 222 (c) and Instructions on page 4.)

2'To secure credit for taxes paid or accrued to possessions of the United States, claimant must be a citizen other than a citizen entitled to benesits of Section 262, or
resident of the United States. (See Section 222 (a) on page 4.)

2A mount of tax" means tax proper, excluding any amount that represents interest or penalties. If the tax has been actually paid in full, the amount of the tax
(excluding interest and penalties) so paid is the amount to be entered in this blank, even though the claim be based on the acerual of the tax.

«State this amount in the currency of the foreign country or possession of the United States (e. g., pounds, francs, marks).

4 Give the rate of exchange used and attach a statement describing in reasonable detail why and how this particular rate was determined.

© To secure credit for taxes paid or accrued to a foreign country, claimant must be a citizen other than a citizen entitled to benefits of Section 262, or resident of the

United States. Moreover, if he is an alten resident, he must be a citizen or subject of a foreign country which allows ‘‘a similar eredit to citizens of the United States
residing in such country.”” (See Section 222 (a) on page 4.)

# Where there is more than one possession of the United States or ono foreign country to which taxes are paid by claimant individually, or by partnership, estate,
or trust in which claimant has an interest, additional schedules should be attached, and the credit claimed on each such schedule should be included in this Summary.

(2) 214403


SUMMARY?’ OF INCOME RECEIVED AND TAXES PAID, AS SHOWN IN SCHEDULES A TO E ON PAGES 1 AND 2
Column A Column B
Tneome ‘Taxes paid or accrued?

Schedule A, Item 2... Schedule A, Item 1...

Schedule B, Item 2...

Schedule B, Item 1.

Schedule C, Item Schedule C, Item 1...

‘Taxes paid oF accrued

9 on behalf of claimant's

Schedule D, Item 2.. - interest in partnership,
estate, or trust

Schedule B, Item 4...
‘Total...

Schedule E, Ttem 2...

- $.

Total.

I. Total income from sources without United States (total Column A)...

IL. Tota: tax paid or accrued to possessions of United States or foreign countries (total Column B).....-

ILI. Total net income, from sources without United States (computed without deductions for any income,

war profits, and excess profits taxes imposed by any foreign country or possession of United States)

IV. Total net income from all sources (computed without deduction for any income, war profits, and excess

profits taxes imposed by any foreign country or possession of United States)...

V. Ratio of income from sources without United States to total income from all sources (Item III divided
by Item IY)...

VI. Total tax on Item IV...

VII. Amount of tax which may be claimed as credit against total tax due United States (amount equal to
Item VI multiplied by Item V, unless Item II is less than such amount, in which case Item II

should be entered here) _-
(To be entered on the attached income tax return Form 1040 A as Item 15, Form 1040 or Form 1040 FY as Item 52)

AFFIDAVIT
I swear (or affirm) that the above is to the best of my knowledge and belief a true and complete statement of facts in con-

nection with the claim for credit for taxes above made.

Sworn to (or affirmed) and subscribed before me this

--) 1928.

jgnature of eleimant or agent)

(Address of agent)

(ificial capacity)

(See References on page 2) 214408

(3)