Tax Payment Clarification Act

Bill: 116-s-2998
Sponsor: full_name: Sen. Braun, Mike [R-IN]
Introduced: 2019-12-09
Policy area: Taxation
Subjects: Income tax credits

Income tax deferral

Interest, dividends, interest rates

Tax administration and collection, taxpayers

Taxation of foreign income
Latest action: action_date: 2019-12-09
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-12-09
action_desc: Introduced in Senate
text: <p><b>Tax Payment Clarification Act</b></p> <p>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. </p>

tv_txt: II 116th CONGRESS 1st Session S. 2998 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.

1. Short title This Act may be cited as the Tax Payment Clarification Act . 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 .