IRS Provides Q&A for Tax Year 2018 Reporting and Payments under Section 965
The Internal Revenue Service this week provided additional information in a question and answer format to help taxpayers meet their filing and payment requirements for the section 965 transition tax.
The Tax Cuts and Jobs Act requires various taxpayers that have untaxed foreign earnings and profits to pay a tax as if those earnings and profits had been repatriated to the United States. The new law outlines details on the tax rates, and how taxpayers elect to pay the transition tax over eight years.
The Questions and Answers provide information related to tax year 2018 filing and payment obligations rising from section 965 — including reporting and payment obligations resulting from amounts included in income for the 2017 tax year.