The Internal Revenue Code’s plain language provides FedEx the ability to claim an $84 million tax credit for “offset earnings” paid on its foreign subsidiaries, and the lower court decision overturning the IRS’s rejection of those credits should be upheld, FedEx told the Sixth Circuit.
FedEx is entitled to credits for foreign taxes its international affiliates paid on foreign earnings and repatriated back to the domestic company because it met the three requirements established under IRC Section 960(a)(3) for a US shareholder to do so, FedEx told the US Court of Appeals for the Sixth Circuit Monday in a brief ...