Go to the IRS website, and research the latest IRS “Publication 514” Foreign Tax Credit for Individuals.

• Imagine you are a tax advisor assisting a client with international tax planning, and the client has excess foreign tax credits.
• Propose a scenario to reduce your client’s tax liability by changing U.S. source income into foreign source income in a way that will not generate any additional foreign tax.
• Provide specific examples of how your client can use tax laws to reduce source income and identify the applicable tax laws that support your recommendation.

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1 Publication 514 discusses the credit or itemized deduction you may be able to take if you paid or accrued foreign taxes to a foreign country on foreign source income and you are subject to US tax on ... View the full answer