FedEx Scores Win Over IRS Regulation in $89 Million Tax Case (1)

FedEx Corp. convinced a federal judge in Tennessee to set aside an IRS regulation that the company says has blocked hundreds of millions of dollars in foreign tax credits for itself and other taxpayers.

The March 31 order from the US District Court for the Western District of Tennessee strikes a blow against the Treasury Department and IRS, which issued the regulation (T.D. 9846) to forbid credits for foreign taxes paid on certain earnings that were offset by losses. Treasury argued that the credits were designed to mitigate double taxation, and its regulation fit into that overall design. ...