The IRS and Treasury has issued Notice 2018-13, providing additional guidance on the deemed repatriation provision in the new GOP tax law.

The notice announced the IRS and Treasury’s intention to issue further regulation on rules to address the calculation of earnings under the transition tax, among other things.

The notice also:

  • Makes a modification to the prior notice issued on Dec. 29, 2017, regarding the repatriation of earnings subject to the transition tax.
  • Issues guidance regarding difficulties with measurement dates (Nov. 2 or Dec. 31, 2017)
  • Clarifies the allocation of hovering deficits
  • Provides taxpayers targeted relief from certain unintended regulatory and reporting consequences arising from a change to existing stock attribution rules in the 2017 Tax Act.

The IRS and Treasury have requested public comments to the notice and on what additional guidance should be issued to assist taxpayers in computing the transition tax. No deadline was specified.