A credit is allowed for foreign income taxes paid or accrued. The financing is limited to that particular part of U.S. tax due to foreign source income. It's not at all refundable, but any excess credit may be carried to other years to reduce tax. Form 843 Tax Abatement - The tax abatement strategy is reasonably creative. The typically employed by taxpayers who've failed transfer pricing back taxes for a few years. In these a situation, the IRS will often assess taxes to the patient based...