Although the transition tax applied to the 2017 tax return, many taxpayers chose to make the payments under an installment agreement, which means it is now time for the second payment. To make this second payment, taxpayers should have received an installment notice payment voucher. However, at this time, not all taxpayers have received this voucher. To make the payment without the voucher, a check should be sent with “2017 965 Tax” in the subject line with the taxpayer identification number. Also, a statement should be included to identify the payment as the second installment of the 965(h) installment payment election. Lastly, IRS Form 965-A should be filed with the return to inform the IRS of the remaining balance of the transition tax and payments that have been made.
The transition tax may have been a one-time event, but the compliance and questions are going to last for years.