Under the Tax Cuts and Jobs Act, Sec. 965 requires U.S. shareholders to pay a transition tax on the untaxed foreign earnings of certain foreign corporations as if those earnings had been repatriated to the United States. This transition tax may have to be paid on 2017 tax returns. Please refer to IRS.gov for additional information.
Stay tuned to Intuit’s article “Sec. 965 Transition Tax,” which provides a guide to how each of the states are conforming, not conforming and addressing the federal 965 transition tax.