IRC Section 965 Transition Tax Services

The Inter­nal Rev­enue Code (IRC) Sec­tion 965 was amend­ed as a result of the U.S. tax reform and imposed manda­to­ry repa­tri­a­tion (tran­si­tion tax) on many indi­vid­ual and cor­po­rate U.S. Share­hold­ers of for­eign cor­po­ra­tions. The tax is retroac­tive for some U.S. share­hold­ers and puni­tive. Lim­it­ed guid­ance has been issued by the Depart­ment of Trea­sury and the Inter­nal Rev­enue Ser­vice (IRS), with more guid­ance and reg­u­la­tions to come.

U.S. Tax IQ is here to help. We have both U.S. tax lawyers and U.S. accoun­tants on the team, which puts us in a unique posi­tion to assist our clients in nav­i­gat­ing the com­plex world of inter­na­tion­al tax­a­tion and, more specif­i­cal­ly, the IRC Sec­tion 965 tran­si­tion tax. Whether you are a U.S. share­hold­er of a Cana­di­an or for­eign cor­po­ra­tion, a Cana­di­an tax accoun­tant or Cana­di­an lawyer who believes your clients may be sub­ject to the tran­si­tion tax, but may ben­e­fit from a bet­ter under­stand­ing of how the new law oper­ates, we are here to help.

IRC Section 965 Transition Tax Services

  • Deter­mi­na­tion of the tax year with respect to which the tran­si­tion tax should be cal­cu­lat­ed;
  • Review of client’s orga­ni­za­tion­al and cor­po­rate struc­tures to iden­ti­fy tax plan­ning oppor­tu­ni­ties;
  • Review of client’s facts, orga­ni­za­tion­al and cor­po­rate struc­tures, to deter­mine if the tran­si­tion tax applies;
  • Deter­mi­na­tion of for­eign tax cred­it applic­a­ble per­cent­age amount and its avail­abil­i­ty for reduc­ing the IRC Sec­tion 965 tran­si­tion tax, if applic­a­ble;
  • Earn­ings and prof­its stud­ies, a deter­mi­na­tion of post-1986 accu­mu­lat­ed earn­ings and prof­its for U.S. fed­er­al income tax pur­pos­es to ensure cor­rect amount of IRC Sec­tion 965 inclu­sion;
  • Plan­ning strate­gies on mit­i­gat­ing the tax impact of the tran­si­tion tax;
  • Prepa­ra­tion and fil­ing of U.S. tax returns for all cat­e­gories of fil­ers sub­ject to the IRC Sec­tion 965 tran­si­tion tax;
  • Devel­op­ing and doc­u­ment­ing tax fil­ing posi­tions for the 2017 and 2018 tax years rel­e­vant to the IRC Sec­tion 965 report­ing and elec­tions;
  • Assis­tance with elec­tions under IRC Sec­tion 965;
  • Rep­re­sen­ta­tion of clients on IRS audit and at Appeals.
  • Deter­mi­na­tion of the tax impact of the IRC Sec­tion 965 tran­si­tion tax on U.S. tax expa­tri­a­tion, rel­e­vant to U.S. cit­i­zens renounc­ing or relin­quish­ing their U.S. cit­i­zen­ship or Green card hold­ers (long-term res­i­dents) aban­don­ing their Green cards;
  • Devel­op­ing tax posi­tions and doc­u­ment­ing them in mem­o­ran­da and tax opin­ions to pro­tect clients from penal­ties;

Please feel free to set up a con­sul­ta­tion on the top right cor­ner of our web­site, to speak with one of our tax pro­fes­sion­als. We can assist in sup­ple­ment­ing your tax knowl­edge to assist your clients, help pre­pare the cal­cu­la­tions and help cre­ate the nec­es­sary state­ments that are required to be filed with your tax return.