IRS admits to 'wrongly collecting millions of dollars' from US expats in France

American expats in France have won a seven-year legal battle as the US tax authority has accepted that French-resident US citizens can deduct certain previously disallowed income levies paid to France, against their US income tax bills. The Internal Revenue Service (IRS) in the United States has now admitted in US tax court that it had "wrongly collected millions of dollars" of US tax from Americans living in France due to its "improper interpretation" of a bilateral treaty. The change could save France-based Americans thousands of dollars each year, and lead to back-tax claims agains...