‘Stakes Are High’ for Companies’ Transition Tax Calculations

Companies considering whether to amend their tax returns to reflect final IRS rules on the transition tax should be aware that miscalculations could result in acceleration—a tax bill due immediately instead of in installments over eight years as planned.

• “You would want to take into account that if an acceleration event occurs, the stakes could be high because you don’t get the eight years,” Brenda Zent, senior adviser on international taxation at Treasury’s Office of Tax Policy, said at a Feb. 26 District of Columbia Bar event.
• “It’s a data point to think about in terms of how you analyze ...