The U.S. Chamber of Commerce urges the Treasury Department to give corporations that overpaid taxes on offshore profits more flexibility in how to use those refunds.
The Internal Revenue Service said earlier this month that it won't rebate excess payments or credit them toward tax bills not tied to repatriation, such as annual bills for corporate income.
“This guidance places taxpayers who are in an overpayment position at a competitive disadvantage to taxpayers who are in an underpayment position,” says a letter sent to Treasury on Tuesday.
The business trade group suggests that companies should be able to choose how the additional tax is applied to their overall tax bill.
Under the Republican tax law enacted in December, companies started making payments on an estimated $3.1 trillion in profits stockpiled overseas since 1986; payments can be made over eight years. Companies are required to tally up their foreign earnings and pay a two-tiered levy. Rates are 15.5 percent for cash and 8 percent on non-cash or other illiquid assets.
From: Bloomberg
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