SEVENTIETH CONGRESS . SEss. I . CH. 852. 1928 .
829 prec edin g t ax ab le years, exceeds 90 per centum of the taxpayer's net income for each such year, as computed withou t the be nefit of section 23(n), then the 15 per centum l imit imposed by such section shall not be applicable . INCOME TAX Supplement C-Credits Against Tax
Credits against tax . [Supplementary to Subtitle B, Part III] Ta'es of foreign coun- SEC. 131. TA XES OF FOR EIGN CO UNT RIES AND POSSESSIONS OF Foes,a United States UNITED STATES . (a) Allo wance of credit . The tax imposed by this title shall be Allowances . credited with :
To citizens and do- (1) CITIZEN AND DOMESTIC CORPORATION .-In the case of a citi- mestic corporations, of taxes to foreign coun- zen of the United States and of a domestic corporation, the tries. 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
Residents, to United (2) RESIDENT OF UNITED STATES .-In the case of a resident of states possessions . the United States, the amount of any such taxes paid or accrued dur ing the taxable year to any poss ession of the United States ; and
Alien residents, to (3) ALIEN RESIDENT OF UNITED STATES.-In the case of an alien foreign countries allow- resident of the United States, the amount of any such taxe s paid ing similar credit . or accrued during the taxable year to any foreign country, if the for eign c ountry of whic h such alien resident is a ci tizen or subject, in imposing such taxes, allows a similar cre dit to ci tiz ens of the United States residing in such country ; and
Partnerships, or trust (4) PARTNERSHIPS AND ESTATES .-In the case of any such indi- bene fici aries , to fore ign vidual who is a memb er of a partnership or a beneficiary of an countries . estate or trust, his proportionate share of su ch t ax es of t he p art - nership or the estate or trust paid or accrued during the taxable year to a fore ign country or to any possession of the United States, as the case may be .
Limitatio n of credits . (b) Limit on credit .-In no case shall the amount of credit taken under this section exceed the same proportion of the tax (computed on the basis of the taxpayer's net income without the deduction of any inco me, war-p rofi ts, o r ex cess- prof its 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 ded uction o f any su ch incom e, war-p rofits, 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 .
Adjustments if tax (e) Adjustments on payment of accrued taxes .-If accrued taxes Paid differ from credits when paid differ from the amounts claimed as credits by the tax- claimed' payer, or if any tax paid is refunded in whole or in part, the taxpayer shall notify the C ommissioner, who shall redetermine the amount of the tax for the year or years affected, and the amount of tax clue upon such redeterm ination, 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 If tax accrued but not in accordance with the provisions of section 322. In the case of such paid. a tax accrued but not paid, the Commiss ioner as a cond itio n preced ent to t he allow ance of this cre dit may require the taxpayer Bo nd requ ired . to give a bond with sureties satisfactory to and to be approved by the Commissioner in such sum as the Commi ssioner may r equire, 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 .
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