The New York State Department of Taxation and Finance recently released notices on the tax treatment of IRC § 965 repatriation amounts for tax year 2017 for corporations and flow-through entities.
The Tax Cuts and Jobs Act requires certain U.S. taxpayers to recognize mandatory deemed repatriation income as Subpart F income. N-Notice 18-7 contains instructions for reporting these IRC § 965 amounts on 2017 New York State tax returns and attachments for C corporations, insurance corporations, and exempt organizations, while N-Notice 18-8 includes instructions for S corporations, partnerships, and fiduciaries.
The notices state that if a taxpayer has IRC § 965 amounts in its 2017 tax year and has already filed its 2017 New York State tax return, then it must file an amended return using the new instructions.
If a taxpayer has IRC § 965 amounts in its 2017 tax year and has not yet filled its 2017 New York State tax return, then it must use the new instructions when filing its original return.
New York State previously released instructions for individuals in N-Notice 18-4. If you have any questions about repatriation reporting, please feel free to contact us.