SECTION 11. DETERMINATION OF

CREDITABLE TAXES

For purposes of determining the amount of tax creditable under sections 901, 902 and 932 of the Code, any amounts paid to possession tax authorities that would not have been due if the possession had made a correlative adjustment may not constitute a creditable tax. See Treas. Reg. § 1.901–2(e)(5)(i) and Rev. Rul. 92–75, 1992–2 C.B. 197. Acts or omissions by the taxpayer that preclude effective competent authority assistance, including failure to take protective measures as described in section 9 of this revenue procedure or failure to seek competent authority assistance, may constitute failure to exhaust all effective and practical remedies as may be required to claim a credit. See, e.g., Treas. Reg. § 1.901–2(e)(5)(i). Further, the fact that the taxpayer has sought competent authority assistance but obtained no relief, either because the competent authorities failed to reach an agreement or because the taxpayer rejected an agreement reached by the competent authorities, generally will not, in and of itself, demonstrate that the taxpayer has exhausted all effective and practical remedies to reduce the taxpayer’s liability for possession tax (including liability pursuant to a possession tax audit adjustment). Any determination within the IRS of whether a taxpayer has exhausted the competent authority remedy must be

made in consultation with the U.S. competent authority.