Title: Tax Payment Clarification Act
Policy area: Taxation

Summary:
Tax Payment Clarification Act
This bill amends the Internal Revenue Code to provide that installment payment of taxes on deferred foreign income shall not prevent a credit or refund of overpayments of tax or an increase in estimated taxes.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2998 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2998

 To amend the Internal Revenue Code of 1986 to clarify that payment of 
  taxes on deferred foreign income in installments shall not prevent 
     credit or refund of overpayments or increase estimated taxes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 9, 2019

  Mr. Braun (for himself, Ms. Sinema, and Mr. Roberts) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to clarify that payment of 
  taxes on deferred foreign income in installments shall not prevent 
     credit or refund of overpayments or increase estimated taxes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Payment Clarification Act''.

SEC. 2. INSTALLMENTS NOT TO PREVENT CREDIT OR REFUND OF OVERPAYMENTS OR 
              INCREASE ESTIMATED TAXES.

    (a) In General.--Section 965(h) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(7) Installments not to prevent credit or refund of 
        overpayments or increase estimated taxes.--If an election is 
        made under paragraph (1) to pay the net tax liability under 
        this section in installments--
                    ``(A) no installment of such net tax liability 
                shall--
                            ``(i) in the case of a request for credit 
                        or refund, be taken into account as a liability 
                        for purposes of determining whether an 
                        overpayment exists for purposes of section 6402 
                        before the date on which such installment is 
                        due, or
                            ``(ii) for purposes of sections 6425, 6654, 
                        and 6655, be treated as a tax imposed by 
                        section 1, section 11, or subchapter L of 
                        chapter 1, and
                    ``(B) the first sentence of section 6403 shall not 
                apply with respect to any such installment.''.
    (b) Limitation on Payment of Interest.--In the case of the portion 
of any overpayment which exists by reason of the application of section 
965(h)(7) of the Internal Revenue Code of 1986 (as added by this 
section)--
            (1) if credit or refund of such portion is made on or 
        before the date which is 45 days after the date of the 
        enactment of this Act, no interest shall be allowed or paid 
        under section 6611 of such Code with respect to such portion; 
        and
            (2) if credit or refund of such portion is made after the 
        date which is 45 days after the date of the enactment of this 
        Act, no interest shall be allowed or paid under section 6611 of 
        such Code with respect to such portion for any period before 
        the date of the enactment of this Act.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in section 14103 of Public Law 115-97.
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