I
104TH CONGRESS
1ST SESSION
H. R. 2355
To amend the Internal Revenue Code of 1986 to allow a corporation to
elect the pooling method of determining foreign tax credits in certain
cases, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 19, 1995
Mr. BASS 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 allow a
corporation to elect the pooling method of determining
foreign tax credits in certain cases, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ELECTION OF POOLING METHOD OF DETER-
MINING FOREIGN TAX CREDIT IN CERTAIN
CASES.
(a) IN GENERAL.—Section 902(c) of the Internal
Revenue Code of 1986 is amended by redesignating para-
under this paragraph in such manner as the
Secretary shall prescribe. Such election—
‘‘(i) shall be made on or before the
due date (including extensions) for filing
the return of tax for the taxable year for
which the election is being made,
‘‘(ii) shall apply to each foreign cor-
poration with respect to which the domes-
tic corporation may apply the rules of sec-
tion 902(a), and
‘‘(iii) once made, shall be irrevocable
for all subsequent taxable years.
‘‘(C) 
OWNERSHIP
REQUIREMENT.—The
ownership requirement of this subparagraph is
met with respect to any foreign corporation if
the domestic corporation owns within the mean-
ing of section 958(a), or is considered as own-
ing by applying the rules of ownership of sec-
tion 958(b), 80 percent or more of the total
combined voting power of all classes of stock
entitled to vote of such foreign corporation.’’.
(b) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by
this section shall apply with respect to taxable years
beginning after December 31, 1986.
(2) TIME FOR FILING ELECTION WHEN RETURN
FILED.—For any taxable year beginning after De-
cember 31, 1986, with respect to which a domestic
corporation has filed a return of income tax imposed
under chapter 1 of the Internal Revenue Code of
1986 prior to the date of enactment of this Act, a
domestic corporation may make the election allowed
under section 902(c)(7) of the Internal Revenue
Code of 1986 within 120 days of the date of enact-
ment of this Act, but only if for such taxable year
any one or more of the following conditions exists:
(A) The period of limitations for assess-
ment and collection, as defined in section
6501(a) of such Code, has not expired.
(B) If the limitations period described in
paragraph (1) has been extended by agreement
between the Secretary and the taxpayer pursu-
ant to section 6501(c)(4) of such Code, such ex-
tended period has not expired.
(C) The period of limitations for filing a
claim for refund pursuant to section 6511(a) of
such Code has not expired.
(D) The proper amount of tax due for the
taxable year is the subject of a petition to the
Tax Court pursuant to section 6213 of such
Code and a decision of the Tax Court on the
merits of the petition, if any, has not yet be-
come final.
(E) The proper amount of tax due for the
taxable year is the subject of a civil action for
refund before a Federal district pursuant to
section 1346(a) of title 28, United States Code,
or before the Federal Court of Claims pursuant
to section 1491(a)(1) of such title, and a deci-
sion on the merits of the refund action, if any,
has not yet become final.
Æ