Notice2025-22608
Agency Information Collection Activities; Comment Request on Provisional Foreign Tax Credit Agreement
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 12, 2025
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
In accordance with the Paperwork Reduction Act of 1995, the IRS is inviting comments on the information collection request outlined in this notice.
Full Text
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<title>Federal Register, Volume 90 Issue 237 (Friday, December 12, 2025)</title>
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[Federal Register Volume 90, Number 237 (Friday, December 12, 2025)]
[Notices]
[Pages 57816-57817]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22608]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Agency Information Collection Activities; Comment Request on
Provisional Foreign Tax Credit Agreement
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of information collection; request for comments.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, the
IRS is inviting comments on the information collection request outlined
in this notice.
DATES: Written comments should be received on or before February 10,
2026 to be assured of consideration.
ADDRESSES: Direct all written comments to Andres Garcia, Internal
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC
20224, or by email to <a href="/cdn-cgi/l/email-protection#215153400f424e4c4c444f5552614853520f464e57"><span class="__cf_email__" data-cfemail="225250430c414d4f4f474c5651624b50510c454d54">[email protected]</span></a>. Include ``OMB Control No.
1545-2296'' in the subject line of the message.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of this collection should be directed to Kerry Dennis, (202)
317-5751.
SUPPLEMENTARY INFORMATION: The IRS, in accordance with the Paperwork
Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the
general public and Federal agencies with an opportunity to comment on
proposed, revised, and continuing collections of information. This
helps the IRS assess the impact and minimize the burden of its
information collection requirements. Comments submitted in response to
this notice will be summarized and/or included in the request for OMB
approval. All comments will become a matter of public record, and
viewable on relevant websites. For this reason, please do not include
in your comments information of a confidential nature, such as
sensitive personal information. Comments are invited on: (a) Whether
the collection of information is necessary for the proper performance
of the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology; and (e) estimates
of capital or start-up costs and costs of operation, maintenance, and
purchase of services to provide information.
Title: Provisional Foreign Tax Credit Agreement.
OMB Control Number: 1545-2296.
Form Number: 7204.
Abstract: Internal Revenue Code (IRC) sections 901 and 905 allow a
taxpayer to claim a foreign tax credit for foreign income taxes paid or
accrued in a taxable year, depending on taxpayer's method of accounting
for such taxes. However, regardless of the year in which the credit is
allowed based on
[[Page 57817]]
taxpayer's method of accounting, the foreign tax credit is allowed only
to the extent the foreign income taxes are ultimately both owed and
actually remitted to the foreign country. For accrual method taxpayers,
IRC section 461(f) (flush language), section 1.461-2(a)(2)(i), and
section 1.905-1(d)(3) provide that a foreign income tax liability that
is contested does not accrue and is not creditable until the contest is
resolved. For cash method taxpayers, a foreign income tax liability
that is contested is not a reasonable approximation of the taxpayer's
final foreign income tax liability and, thus, under section 1.901-
2(e)(2)(i), is not considered an amount of tax paid for purposes of
section 901 until the contest is resolved. However, sections 1.905-
1(c)(3) and 1.905-1(d)(4) allow taxpayers to make an election to claim
a provisional foreign tax credit for a contested foreign income tax
liability to the extent that the taxpayer has remitted the contested
tax to the foreign country. As a condition for making this election,
the taxpayer must enter into a provisional foreign tax credit
agreement, in which the taxpayer gives the IRS information regarding
the contested foreign income tax liability and agrees to comply with
the conditions of the election, including agreeing to not to assert the
statute of limitations on assessment as a defense to assessment of
taxes and interest by the IRS with respect to the contested tax for a
period of three years from the year in which taxpayer notifies the IRS
of the resolution of the contest. See section 1.905-1(d)(4)(ii). Form
7204 must be used for elections to claim a provisional credit for
contested foreign income taxes as provided in Regulations sections
1.905-1(c)(3) and 1.905-1(d)(4).
Current Actions: There is no change to the paperwork burden
previously approved by OMB.
Type of Review: Extension of a currently approved collection.
Affected Public: Individuals or households, business or other for-
profit organizations.
Estimated Number of Responses: 11.400.
Estimated Time per Response: 2 hours.
Estimated Total Annual Burden Hours: 22,800 hours.
Dated: December 8, 2025.
Kerry Dennis,
Tax Analyst.
[FR Doc. 2025-22608 Filed 12-11-25; 8:45 am]
BILLING CODE 4830-01-P
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