How do I pay my 965 Transition tax?

You may submit your section 965(h) net tax liability installment payment using any of the following payment options: EFTPS.gov (Web, IVR and Agent), credit cards, Direct Pay, bulk providers and batch providers.

What is the purpose of Form 965?

Purpose of Form This form is used to report a taxpayer’s net 965 tax liability for each tax year in which a taxpayer must report or pay section 965 amounts.

What is the repatriation tax rate?

Upon repatriation, the earnings would be subject to US taxation at a rate up to 35 percent, with a credit for foreign taxes paid. The repatriation typically resulted in a net US tax obligation because the US tax rate was usually higher than the foreign tax rate.

Who is required to pay transition tax under section 965?

Section 965 requires United States shareholders (as defined under section 951(b)) to pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States.

When did the IRS release SEC 965 guidance?

On Dec. 12, 2018, the IRS released a new set of questions and answers (available at that provides guidance on Sec. 965 reporting and payment requirements for 2018 tax returns, including obligations resulting from amounts included in income for the 2017 tax year.

Do you have to pay the SEC 965 toll charge?

That is, the amount of income tax properly due for the 2017 tax period, including the full Sec. 965 (h) liability, is the entire income tax liability for that period, even though a taxpayer may elect to pay the toll charge in installments.

What are the questions and answers about section 965?

The Questions and Answers section below is based on and is prepared pursuant to the IRS FAQ About Reporting Related to Section 965 on 2017 Tax Returns (available at: ) (last visited June 1, 2018).