A three-judge Federal Circuit panel appeared hesitant Tuesday to reverse a lower court’s decision allowing a couple to rely on a 1994 treaty between the US and France to use a foreign tax credit to offset a tax created under the Affordable Care Act.
During oral arguments, the US Court of Appeals for the Federal Circuit judges focused on the resourcing rule contained in Article 24(2)(b) of the treaty and whether it’s subject to the Internal Revenue Code’s limitations on foreign tax credits. The rule delineates certain types of income that are considered sourced to France instead of the US ...