Alan Horowitz comments on a certiorari petition to the Supreme Court that has attracted the attention and support of several notable economists and tax practitioners who have filed amicus briefs urging review. At issue is the interpretation of regulations under section 901 that allow a credit for foreign taxes that have the predominant character of an income tax that reaches net gain. Following a circuit split on the issue, PPL Corp., the taxpayer in one of the cases, filed a petition for certiorari in July.

"The government will make a judgment about whether to acquiesce based on its assessment of its own interests, including the effect on the public fisc, the future importance of the issue, and its view of the prospects of prevailing," Horowitz said, adding that the government's approach "will carry considerable weight with the court, though it won't necessarily be dispositive."