terrorist tax technicalities

Dave Long dl@silcom.com
Tue, 15 Jan 2002 11:07:16 -0800

It's that time of year again, and
for some reason I thought I'd try
the IRS forms instead of TurboTax.

Under "foreign tax credits" there
is language that's probably always
been there, but I've passed over
in the mice type in prior years:
don't take credits for taxes paid
to terrorism-supporting (or just
plain unrecognized*) countries.

Well, I'm pretty sure I haven't
paid any taxes to a country which
supports terrorists, but where is
the list?  I pull down form 1116,
since I need that anyway, but it
only says to check pub. 514 for
the complete list.

To save some of you all the paper
chase, here is the list for 2001:

cuba, iran, iraq, libya, north
korea, sudan, syria

(interestingly enough, it looks
like afghanistan hasn't been on
the list since 1994)


I'm half tempted to fire up TT to
see if typing 'cuba' into a form
1116 tickles an error dialogue.


* except, of course, for the good
unrecognized countries:

> You cannot claim a foreign tax credit ... if the income ... is for a
> period ... during which: ... 3) The United States does not recognize
> the country's government, unless that government is eligible to
> purchase defense articles or services under the Arms Export Control
> Act.

has a (possibly outdated) list of
governments which are ineligible.
Does this mean that Bulungi has a
government which is eligible even
though unrecognized?