Rev. Rul. 80-94

1980-1 C.B. 170, 1980-14 I.R.B. 10.

                       Internal Revenue Service
                                 Revenue Ruling

               SOCIAL SECURITY TAXES; FEDERAL REPUBLIC OF GERMANY

                            Published: April 7, 1980

26 CFR 1.901-1: Allowance of credit for taxes.

(Also Section 164; 1.164-1.)

  Social security taxes; Federal Republic of Germany. No deduction or credit is allowable under section 164(a) or section 901(b) of the Code for social security taxed paid or accrued to the Federal Republic of Germany on or after December 1, 1979.

ISSUE

  Is a deduction or a credit allowable under section 164(a) or section 901(b) of the Internal Revenue Code for social security taxes paid or accrued to the Federal Republic of Germany on or after December 1, 1979?

FACTS AND LAW

  On December 1, 1979, pursuant to section 233(a) of the Social Security Act, 42 U.S.C. section 433 (1979), the United States entered into an agreement with the Federal Republic of Germany establishing a totalization arrangement between the United States social security system and the German social security system for the purpose of establishing an individual's entitlement to and the amount of benefits on the basis of such individual's period of coverage under both systems.

  Section 317(b)(4) of the Social Security Amendments of 1977, Pub. L. 95-216, 1978-1 C.B. 462, 467, provides that, notwithstanding any other provision of law, social security taxes paid by any individual to a foreign country shall not be deductible by, or creditable against the income tax of, any such individual where an agreement pursuant to section 233 of the Social Security Act has been entered into between such foreign country and the United States.

HOLDING

  Neither a deduction nor a credit is allowable under section 164(a) or section 901(b) of the Code for social security taxes paid or accrued to the Federal Republic of Germany on or after December 1, 1979.

Rev. Rul. 80-94, 1980-1 C.B. 170, 1980-14 I.R.B. 10.