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IRS Says 90-Day Extension Applies to 2017 Transition Tax Bill

March 24, 2020, 8:46 PM

Transition tax installment payments are covered under the IRS 90-day payment extension, even though they originated from the 2017 tax year.

The question was answered in an FAQ updated Tuesday. It was a major outstanding question for tax professionals and companies after the agency announced tax payments originally due April 15 are now due July 15.

  • The payments are tied to the repatriation tax under Section 965. The tax applies at a rate of 15.5% on cash and cash assets, and 8% on illiquid assets.
  • The IRS issued final regulations on the tax after companies had filed their...

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