French Prélèvements Sociaux (CSG & CRDS) – allowable as Foreign Tax Credits for US filers

It has been agreed between the US and France that the CSG & CRDS (Contribution Sociale Generalisée and Contribution au Remboursement de la Dette Sociale) taxes will no longer be regarded as « social taxes » and, as a result, US filers will be able to claim such taxes paid in France as a foreign tax credit when determining their US income tax liabilities.

This change in practice by the IRS will mean that US filers can amend their returns to claim these French taxes as a foreign tax credit. The time limit for such claims is 10 years from the normal filing date (excluding extensions). So, if appropriate, an individual can go back to 2009.

Any indiviual wishing to file a 1040X (amended return) to take advantage of this change in policy, should write in red across the top of the form :

French CSG/CRDS Taxes

If you are interested in filing an US amended return to make a foreign tax credit claim, then please contact [email protected]