The IRS has released a number of draft forms for 2018 tax years over the last few weeks, including several that may be used by U.S. based multinational corporations. Notable forms and their respective release dates are listed below:
- Form 1118, Foreign Tax Credit - Corporations (Aug. 7);
- Form 1120, U.S. Corporation Income Tax Return (Aug. 20);
- Forms 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI) and 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) (Aug. 22);
- Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System (Aug. 30) along with:
- Form 965 (Schedule A), U.S. Shareholder’s Section 965(a) Inclusion Amount
- Form 965 (Schedule B), Deferred Foreign Income Corporation’s Earnings and Profits (E&P)
- Form 965 (Schedule C), U.S. Shareholder’s Aggregate Foreign Earnings and Profits Deficit
- Form 965 (Schedule D), U.S. Shareholder’s Aggregate Foreign Cash Position
- Form 965 (Schedule E), U.S. Shareholder’s Aggregate Foreign Cash Position – Detail
- Form 965 (Schedule F), Foreign Taxes Deemed Paid by Domestic Corporation for tax years of foreign corporations whose last taxable year, beginning before January 1, 2018, ends during the shareholder’s 2018 tax year
- Form 965 (Schedule G), Foreign Taxes Deemed Paid by Domestic Corporation for tax years of foreign corporations whose last taxable year, beginning before January 1, 2018, ends during the U.S. shareholder’s 2017 tax year
- Form 965 (Schedule H), Amount Reported on Forms 1116 and 1118 and Disallowed Foreign Taxes
- Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts (Sept. 5).
All forms are watermarked with their release date and contain a warning that they in draft form and not intended for filing.
The draft Form 1120 provides some insight into how the Section 965(a) inclusion may be reported on a U.S. corporate income tax return for the 2018 tax year. Schedule C, Dividends, Inclusions and Special Deductions
, on the draft form contains a new line 15 (titled “Section 965(a) inclusion”) where it appears the Section 965(a) inclusion and corresponding section 965(c) deduction will be reported.
Partner, Washington National Tax Office
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Managing Director, Washington National Tax Office
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Senior Manager, Washington National Tax Office
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Mike Del Medico
Manager, Washington National Tax Office
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