A credit is allowed for foreign income taxes paid or accrued. The money is limited certain part of Oughout.S. tax due to foreign source income. It is not refundable, but any excess credit become carried to other years to reduce tax. When big amounts of tax due are involved, this usually requires awhile for a compromise regarding agreed. Taxpayer should be wary with this situation, that entails more expenses since a tax lawyer's service is inevitably called for. And this is actually for tw...