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IRS Provides Guidance on Paying Repatriation Tax
The IRS posted information for taxpayers that have started paying their transition tax, also known as a repatriation tax, in installments.
In Q&A format, the agency advised taxpayers that it will “make every effort” to issue installment notices and payment vouchers for installments about six or eight weeks before the due dates. It provided instructions for making the payments and for handling transfer agreements and consent agreements.
The 2017 tax law created the transition tax, which applies to assets held overseas during the years since 1986. The tax, under tax code Section 965, can be paid in installments over eight years.
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