PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Business Coalition Letter to U.S. Treasury/IRS Commissioner Rettig Requesting Guidance on Deferred Section 965 Tax Liabilities

By at 9 October, 2018, 10:20 am

SBE Council joined 30 business organizations and signed a letter to IRS Commissioner Charles Rettig requesting that the Treasury Department revise relevant guidance to allow taxpayers with deferred §965 tax liabilities to choose how their tax overpayments are applied. As noted by the groups in the letter current guidance is inconsistent with Congressional intent and with the letter of the Tax Cuts and Jobs Act.

The October 9, 2018 letter reads:

“Congress explicitly gave taxpayers the election to defer – for eight years for C corporation shareholders and indefinitely for S corporation shareholders – their tax liabilities under §965. The guidance issued by the IRS and the subsequent memorandum from the Chief Counsel’s Office seek to overturn this policy without any statutory authority.

U.S. taxpayers routinely overpay their estimated taxes because there are substantial tax penalties for underpayment. The policy IRS articulated regarding §965 liabilities would establish a new penalty for taxpayers who overpay their taxes. It is contrary to Congressional intent and it is contrary to a plain reading of the law. We respectfully request that the IRS revise its guidance and restore to allowing taxpayers the full deferral of their §965 tax liabilities, as Congress intended.”

Read full letter here.  

 

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