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U.S. Citizens in France Win 7-Year Fight With the IRS

  • IRS finally agrees that CSG is tax, not a social charge
  • U.S. filing ends 7-year legal battle, could cost ‘millions’

The U.S. government will stop contesting a tax deduction sought by Americans living in France, according to a law firm involved in a seven-year legal battle over the levy.

The Internal Revenue Service said in court filings last week that it should have allowed U.S. taxpayers resident in France to deduct so-called Generalized Social Contribution taxes, a levy imposed on income in France, said Stuart Horwich, a U.S. lawyer at Horwich Law in London. He estimated that roughly $100 million could be at stake and some people could seek refunds dating back 10 years.