Despite NOL Carrybacks, IRS Continues to Deny Refunds of Section 965 Transition Tax Overpayments

By on April 29, 2020

In a series of frequently asked questions (FAQs) addressing the interaction of recently enacted net operating loss (NOL) carryback provisions and section 965, the IRS stated that taxpayers may not receive a refund of any section 965 tax payment unless and until the payment exceeds the “entire income tax liability for section 965.” The IRS further stated that such amount “includes all amounts to be paid in installments under section 965(h) in subsequent years.” This position – that taxpayers are not entitled to a refund of an overpayment of the section 965 tax liability unless and until the overpayment amount exceeds the full eight years of installment payments – is consistent with the IRS’s previously published position in PMTA 2018-016 (and as discussed in our prior analyses, here and here).

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Justin G. CrouseJustin G. Crouse
Justin G. Crouse focuses his practice on US and international tax matters. He has collaborated with clients from a range of industries to research and develop international tax planning opportunities, including global holding company structures, intellectual property migration, foreign tax credit planning and repatriation. Read Justin Crouse's full bio.

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