Important information to taxpayers impacted by the 2017 Section 965, Transition Tax, a.k.a. Repatriation Tax.
In the last several days due to the health and economic crisis posed by the COVID-19 pandemic, the IRS has issued notices allowing taxpayers to postpone tax payments and filing of extensions due on April 15, 2020.
Today IRS released Filing and Payments Deadlines Questions and Answers related to COVID-19 relief. FAQ #8 addressed Section 965 transition tax installment payments. Specifically, the IRS says that this relief does indeed apply to Section 965 payments for taxpayers whose tax return was due April 15, 2020, and was extended to July 15, 2020. In this instance, the Section 965 Installment payment due date also moves from April 15, 2020, to July 15, 2020.
Note: Transition Tax payments are to be paid separately either via EFTPS, Federal Wire, or Separate Check mailed to the IRS. Please reach out to Withum’s International Tax Service Team for more guidance on this or any related matter.
Note: Transition Tax payments are to be paid separately either via EFTPS, Federal Wire, or Separate Check mailed to the IRS.