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.

I 116TH CONGRESS 1ST SESSION H. R. 2985 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. IN THE HOUSE OF REPRESENTATIVES MAY 23, 2019 Mr. ESTES (for himself and Mr. SCHNEIDER) introduced the following bill; which was referred to the Committee on Ways and Means 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 over- payments or increase estimated taxes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. INSTALLMENTS NOT TO PREVENT CREDIT OR 3 REFUND OF OVERPAYMENTS OR INCREASE 4 ESTIMATED TAXES. 5 (a) IN GENERAL.—Section 965(h) of the Internal 6 Revenue Code of 1986 is amended by adding at the end 7 the following new paragraph: 8 VerDate Sep 11 2014 03:58 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2985.IH H2985 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 2985 IH ‘‘(7) INSTALLMENTS NOT TO PREVENT CREDIT 1 OR REFUND OF OVERPAYMENTS OR INCREASE ESTI- 2 MATED TAXES.—If an election is made under para- 3 graph (1) to pay the net tax liability under this sec- 4 tion in installments— 5 ‘‘(A) no installment of such net tax liabil- 6 ity shall— 7 ‘‘(i) in the case of a request for credit 8 or refund, be taken into account as a li- 9 ability for purposes of determining whether 10 an overpayment exists for purposes of sec- 11 tion 6402 before the date on which such 12 installment is due, or 13 ‘‘(ii) for purposes of sections 6425, 14 6654, and 6655, be treated as a tax im- 15 posed by section 1, section 11, or sub- 16 chapter L of chapter 1, and 17 ‘‘(B) the first sentence of section 6403 18 shall not apply with respect to any such install- 19 ment.’’. 20 (b) LIMITATION ON PAYMENT OF INTEREST.—In the 21 case of the portion of any overpayment which exists by 22 reason of the application of section 965(h)(7) of the Inter- 23 nal Revenue Code of 1986 (as added by this section)— 24 VerDate Sep 11 2014 03:58 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2985.IH H2985 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 2985 IH (1) if credit or refund of such portion is made 1 on or before the date which is 45 days after the date 2 of the enactment of this Act, no interest shall be al- 3 lowed or paid under section 6611 of such Code with 4 respect to such portion; and 5 (2) if credit or refund of such portion is made 6 after the date which is 45 days after the date of the 7 enactment of this Act, no interest shall be allowed 8 or paid under section 6611 of such Code with re- 9 spect to such portion for any period before the date 10 of the enactment of this Act. 11 (c) EFFECTIVE DATE.—The amendment made by 12 subsection (a) shall take effect as if included in section 13 14103 of Public Law 115–97. 14 Æ VerDate Sep 11 2014 03:58 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2985.IH H2985 pamtmann on DSKBFK8HB2PROD with BILLS