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A credit is allowed for foreign income taxes paid or accrued. The money is limited for that part of Ough.S. tax due to foreign source income. It is not refundable, but any excess credit the carried to other years to reduce tax. When big amounts of tax due are involved, this usually takes awhile for almost any compromise being agreed. Taxpayer should be suspicious with this situation, cibai since the device entails more expenses since a tax lawyer's service is inevitably needed.

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