Exception:

In extremely rare cases, due to pass-through partnership claims, taxpayers could have an IRC 965 inclusion in 2020.

During the inclusion period (201712-201911) taxpayers could elect one or more of the following on the inclusion year return:

to pay the Section 965 transition tax in full,

eligible S Corporation shareholders could defer the assessment and payment of the Section 965 transition tax from the S Corporation until a triggering event occurred by making a 965(i) election, and/or

the taxpayer could defer the payment of the Section 965 transition tax over the course of 8 annual installments by making a 965(h) election,

eligible REITs could defer the reporting of Section 965 income over an 8-year period, and/or

eligible taxpayers could exclude 965 income when determining the net operating loss (NOL) deduction and when determining the amount of income that can be reduced by a NOL carryback or carry forward, thereby making the NOL available to offset the non-965 income only for the inclusion year return.

A person/entity that had income under section 965 of the Code for its 2017 taxable year included with its return an IRC 965 Transition Tax Statement signed under penalties of perjury and, in the case of an electronically filed return, in Portable Document Format (.pdf) with a filename of 965 Tax. Multiple IRC 965 Transition Tax Statements could have been combined into a single .pdf file.

In tax year 2018, Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, with Form 965-A , Individual Report of Net 965 Tax Liability, or Form 965-B , Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, replaced the 2017 IRC 965 Transition Tax Statement .pdf.

Any individual taxpayer or taxpayer taxed like an individual (i.e., Form 1041 filer) with a net IRC 965 tax liability remaining unpaid at any time during a tax year must file Form 965-A.