Notice 2022-42 gives taxpayers more certainty as to the United States (US) tax implications of an amendment made to their tax decrees in Puerto Rico.Foreign income tax paid or accrued to Puerto Rico under an existing tax decree amended on or before 31 December 2022, would generally not be treated as noncompulsory amounts under Treas. Reg. Section 1.901-2(e)(5). Under the new guidance in Notice 2022-42, taxpayers must still analyze whether entering into a new agreement would cause their tax liability to exceed their tax liability as determined under Puerto Rico’s generally applicable tax laws.In Notice 2022-42, the US Internal Revenue...