Guidance Announced on Accounting Period Changes Under Transition Tax
IR-2018-25
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2018-7424
- Tax Analysts Electronic Citation2018 TNT 31-232018 WTD 31-25
IRS Issues Guidance on Changes in Accounting Periods Related to the Transition Tax
Feb. 13, 2018
WASHINGTON — The Treasury Department and the Internal Revenue Service (IRS) today announced modifications to the procedures for changing the accounting period of foreign corporations owned by U.S. shareholders that are subject to the transition tax under the Tax Cuts and Jobs Act.
On Dec. 29, 2017, the Treasury Department and the IRS provided initial guidance on computing the transition tax in Notice 2018-07. On Jan. 19, 2018, the Treasury Department and the IRS provided additional guidance in Notice 2018-13.
Today's revenue procedure (Rev. Proc. 2018-17) prevents changes to the annual accounting periods of certain foreign corporations in 2017 under either the existing automatic or general procedures if such change could result in the avoidance, reduction, or delay of the transition tax.
Rev. Proc 2018-17 will be published in IRB 2018-09 on Feb. 26, 2018. The Treasury media contact for this matter is Marisol Garibay, Deputy Assistant Secretary for Public Affairs, 202-622-6490.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2018-7424
- Tax Analysts Electronic Citation2018 TNT 31-232018 WTD 31-25