Merci, Mercy Me: Foreign Tax Credit Allowed Against §1411 Tax

In Christensen v. United States, the Court of Federal Claims decided that a US couple living in France could claim a foreign tax credit against the net investment income tax (NIIT) under the US-France income tax treaty (as amended, the “Treaty”) (No. 20-935T (Fed. Cl. Sept. 13, 2023)). The decision came as a bit of a surprise, especially on the heels of the Tax Court’s contradictory conclusion under the same Treaty just a couple years ago in Toulouse v. Commissioner, 157 T.C. 49 (2021). All too soon, “things ain’t what they used to be,” as Mr. Gaye wrote ...