IRS Releases Additional Guidance on Section 965
The Treasury and the IRS have published Notice 2018-78, containing additional guidance on the proposed regulations for Section 965, which were published on August 9, 2018. The Notice provides that the final regulations (i) will not require taxpayers to make a binding basis election until at least 90 days after finalization of the proposed regulations; (ii) will permit all members of consolidated groups that are U.S. shareholders of a specified foreign corporation to be treated as a single U.S. shareholder for purposes of the exception to treating certain items as cash under proposed 1.965-3(b); and (iii) will postpone certain filing and election dates for taxpayers affected by Hurricane Florence. The deadline for comments on the proposed regulations is October 9, 2018.
Read More: IRS to Extend Basis Election Due Date in Proposed Transition Tax Regs