The Christensen's Case: A Foreign Tax Credit Against the NIIT {AKA "Obamacare" Tax}.
Photo by raouf meftah: https://www.pexels.com/photo/aerial-view-of-port-de-nice-in-france-17200665/ Twenty twenty-three was a landmark year for court cases involving various foreign compliance requirements for tax residents/ citizens/ Green Card holders in the United States. Bittner, Farhy and the pending Moore case in the Supreme Court are some examples. We wrote about them here . Court cases that involve interpretation of Tax Treaties are always fun! Especially if the interpretation is in the taxpayer's favor. In the field of foreign and cross-border tax matters, bringing good news when going over onerous tax filings & penalties for non-compliance is a small silver lining. In the case of Christensen v. United States, the court interpreted the US-France income tax treaty to allow US citizens residing in France to claim a treaty based foreign tax credit ( more on mechanics of the FTC in our post here ) against the US Net Investment Income tax or NIIT for income tax imposed
