The final Section 965 regulations, released on January 15, 2019 (and subsequently updated), specify that, for taxpayers that elected to pay their toll tax liability in installments, if a triggering event or acceleration event occurred on or before the date that the final Section 965 regulations are published in the Federal Register, then a transfer agreement to avoid an acceleration event must be filed within 30 days of that publication date in order to be considered timely filed.
This is a change from the original version of the regulations that was advance dropped by Treasury following the OMB’s OIRA review. The final regulations have not yet been published in the Federal Register as of this Insight’s publishing and there may be minor additional changes to the regulations before they are published. In addition, the regulations provide that Section 9100 relief is not available to file a transfer agreement late.
Taxpayers should immediately consider the potential impact of these rules to transactions completed in 2018. Additionally, taxpayers should consider whether transactions contemplated for 2019 are eligible for a transfer agreement that would need to be filed within 30 days of the transaction date (subject to the special filing deadline pending publication of the final regulations in the federal register, as noted above).