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.