Good news for French tax residents in the United States. They will now be able to deduct from their US taxes the CSG-CRDS levied in France.
They also have ten years to claim from the US tax authorities the repayment of sums improperly collected by the IRS. "This ten-year period runs from the moment taxpayers declare their taxes regardless of the tax extensions", Says Roland Lescure, the French deputy of North America, who"welcomes"In a statement of this"change of tax doctrine".
The reason for this change of course on the part of the IRS (Internal Revenue Service)? The admission by this administration that it unfairly considered the Generalized Social Contribution (CSG) and the Contribution to the Reimbursement of Social Debt (CRDS) as social contributions and not taxes, which did not allow taxpayers to deduct them from their taxes. The United States was one of the only countries in the world to treat CSG-CRDS in this way.
The IRS made this surprising admission in court documents released June 14 in Washington as part of a lawsuit initiated by a couple of US taxpayers in France.
Roland Lescure states that "the technical modalities"Will be communicated to taxpayers"when they have been specified by the US tax authorities".
