Managing Director, American Tax Returns Ltd American Tax Returns Ltd
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Jeb Bush releases tax returns; but foreign tax claims are wrong!

12th Jul 2015
Managing Director, American Tax Returns Ltd American Tax Returns Ltd
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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.

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