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

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 ...