Department of the Treasury (DY), Internal Revenue Service 6009 Oxon Hill Rd, 7th Fl. Conste. Centre M:P:I:E Oxon Hill, Md. 20745

70 -- FOREIGN TAX CREDIT SOFTWARE SOL IRS-95-0098 POC Margaret M Hunt, Contracting Officer, 202-283-1232. The Internal Revenue Service (IRS) intends to negotiate with Electronic Tax Systems, Inc. on a sole source basis under the authority of FAR Subpart 6.302-1, to acquire foreign tax credit software for 40 of IRS' International Examiners. The software modules to be purchased are as follows: System 5 Foreign Sales Corporation (FSC) software and System 5 Possessions Corporation Credit (PCC) Software. The FSC software is analysis and compliance software for analysis of the issues related to the use of an FSC to obtain partial exemption from U.S. tax of export profits. The PCC software is for analysis of the Section 936 possession tax credit available to possession corporations. This software will aid the International Examiners in auditing complex computational issues involving foreign sales corporation entities and possession corporations. The IRS believes that Electronic Tax Systems, Inc. is the only source that can provide this software, which must be compatible with existing foreign tax credit software competitively acquired through Electronic Tax Systems, Inc. in 1994. Refer to Note 22. (0192)

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