The US Treasury on September 1 issued Notice 2020-69, which, among other things, provides notice that regulations are expected that would allow certain S corporations to elect entity-level treatment for purposes of the Global Intangible Low-Taxed Income (GILTI) rule under Section 951A. The election can be made for a timely filed return (including extensions) for tax years ending on or after September 1, 2020.
For tax years ending prior to September 1, 2020 and after July 21, 2019, the S corporation and all of its shareholders must elect on a timely filed original return (including extensions) or an amended return filed by March 15, 2021. Until regulations are issued, Notice 2020-69 states that taxpayers may rely upon the Notice provided the S corporation and all shareholders that are US shareholders of the controlled foreign corporation consistently apply the rules of the Notice as stated therein.
