S. 327 — HONOR Act

This section denies the foreign tax credit under IRC §901(j) to U.S. taxpayers for income taxes paid or accrued to Russia during the period beginning 30 days after enactment and ending on the date normal trade relations with Russia resume pursuant to section 4(b) of the Suspending Normal Trade Relations with Russia and Belarus Act (P.L. 117-76). It further denies the deduction for such Russian taxes paid or accrued (or deemed paid) after 90 days after enactment. (As background, §901(j) disallows foreign tax credits and deductions for taxes paid to countries that nationalize U.S. persons' property without compensation or impose certain trade restrictions.) Both denials apply on enactment and without regard to any U.S. tax treaty obligation with Russia.