The IRS clarifies how to claim a refund for previously noncreditable French taxes.

July 30, 2019

U.S. employers may not file for refunds claiming the foreign tax credit (FTC) for the previously noncreditable French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociale (CRDS) taxes withheld on behalf of their employees.

However, individuals can claim FTCs in prior years related to the CSG and CRDS taxes. Taxpayers may file amended returns, using Form 1040-X, to include accompanying Form 1116, “Foreign Tax Credit,” going back to 2009. The taxpayer must write “French CSG/CRDS Taxes” in red at the top of Forms 1040-X, and file them with accompanying Forms 1116.