Corporate taxpayers with IRC Sec. 965 income must file Schedule 965 with their 2017 Rhode Island income tax return. The taxpayer’s federal “IRC 965 Transition Tax Statement” must also be included with Schedule 965.
These requirements stem from recently adopted regulations requiring corporations to include net IRC Sec. 965 income as Rhode Island income.
IRC Sec. 965 Income
Under IRC Sec. 965, certain taxpayers must include accumulated post-1986 deferred foreign income in federal income for the 2017 tax year. This is referred to as the federal “repatriation transition tax.”
Amended Return May Be Required
An amended return that includes Schedule 965 must be filed if the taxpayer already filed a 2017 Rhode Island return.
Advisory for Tax Professionals 2018-32, Rhode Island Department of Revenue, Division of Taxation, August 2, 2018, ¶200-971