Jeb Bush releases tax returns; but foreign tax claims are wrong!

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Jeb, you recently released 33 years of tax returns; more than any other candidate in history. If you, as a Presidential candidate, cannot even understand all of the boxes on all of the pages, what chance is there for the average American abroad?

Jeb, you claimed credit for foreign tax that you paid on foreign source income.  This should be fine. However your US tax returns include two separate IRS Forms 1116 (the correct form for claiming foreign tax credit). One of these forms claimed credit for foreign tax that you “paid” and a separate form claimed a credit for foreign taxes that you “accrued”.  Using both “paid” and “accrued” claims is simply a “no-no”.  Naughty you Jeb, the claim you made is not in line with the law; and you’d like to be the President soon in charge signing all laws in future!

Sadly for you Jeb, the foreign tax credit claim that you made is contrary to Internal Revenue Code section 905(a). This obscure section of the Internal Revenue Code is actually quite important to over seven million Americans living overseas. It states that once a claim has been made to claim for foreign taxes on the accrued basis, that this election applies to all claims for foreign tax credits and that it is irrevocable, so the claim on your recent US tax returns for foreign tax that you “paid” must be wrong.

Jeb, take a few minutes out of the campaign, review and amend your US tax returns to correct the mistake.  I’d be only too glad to prepare the forms for you; just feel free to ask me.

About David Treitel

About David Treitel

American Tax Returns Ltd is a leading firm of dually US and UK qualified tax advisers which prepares both US and UK tax returns and provides sensible practical “joined-up” American and British tax advice; all for a simple fee agreed before starting. The firm is led by David Treitel, one of the best known dually US and UK qualified tax advisers in the UK who serves at committee level with both the ICAEW and the CIOT, the UKs leading professional accounting and tax bodies.

Clients include people from all walks of life where there is an American connection. The kind of people we take care of is truly diverse ranging from academics, entrepreneurs and expatriate employees to those of independent wealth as well as many who are now retired but find that tax has never quite gone away! While most of our clients are up to date, we can and do frequently handle any worries that come from being behind with tax returns.

We specialise in helping make US and UK tax easily understandable for those in the UK. Tax returns can be complicated, confusing, time-intensive and even a tiny bit scary. With over thirty years of practical experience there are simply no forms that we won’t help you to complete, no questions that we can’t answer and no tax that we can’t help you save. No wonder we are often called “the tax expert’s expert”!

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