Tax Payment Clarification Act

II 116TH CONGRESS 1ST SESSION S. 2998 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 SENATE OF THE UNITED STATES DECEMBER 9, 2019 Mr. BRAUN (for himself, Ms. SINEMA, and Mr. ROBERTS) introduced the following bill; which was read twice and referred to the Committee on Finance 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. SHORT TITLE. 3 This Act may be cited as the ‘‘Tax Payment Clari- 4 fication Act’’. 5 VerDate Sep 11 2014 04:17 Dec 12, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2998.IS S2998 kjohnson on DSK79L0C42 with BILLS 2 •S 2998 IS SEC. 2. INSTALLMENTS NOT TO PREVENT CREDIT OR RE- 1 FUND OF OVERPAYMENTS OR INCREASE ES- 2 TIMATED TAXES. 3 (a) IN GENERAL.—Section 965(h) of the Internal 4 Revenue Code of 1986 is amended by adding at the end 5 the following new paragraph: 6 ‘‘(7) INSTALLMENTS NOT TO PREVENT CREDIT 7 OR REFUND OF OVERPAYMENTS OR INCREASE ESTI- 8 MATED TAXES.—If an election is made under para- 9 graph (1) to pay the net tax liability under this sec- 10 tion in installments— 11 ‘‘(A) no installment of such net tax liabil- 12 ity shall— 13 ‘‘(i) in the case of a request for credit 14 or refund, be taken into account as a li- 15 ability for purposes of determining whether 16 an overpayment exists for purposes of sec- 17 tion 6402 before the date on which such 18 installment is due, or 19 ‘‘(ii) for purposes of sections 6425, 20 6654, and 6655, be treated as a tax im- 21 posed by section 1, section 11, or sub- 22 chapter L of chapter 1, and 23 ‘‘(B) the first sentence of section 6403 24 shall not apply with respect to any such install- 25 ment.’’. 26 VerDate Sep 11 2014 04:17 Dec 12, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2998.IS S2998 kjohnson on DSK79L0C42 with BILLS 3 •S 2998 IS (b) LIMITATION ON PAYMENT OF INTEREST.—In the 1 case of the portion of any overpayment which exists by 2 reason of the application of section 965(h)(7) of the Inter- 3 nal Revenue Code of 1986 (as added by this section)— 4 (1) if credit or refund of such portion is made 5 on or before the date which is 45 days after the date 6 of the enactment of this Act, no interest shall be al- 7 lowed or paid under section 6611 of such Code with 8 respect to such portion; and 9 (2) if credit or refund of such portion is made 10 after the date which is 45 days after the date of the 11 enactment of this Act, no interest shall be allowed 12 or paid under section 6611 of such Code with re- 13 spect to such portion for any period before the date 14 of the enactment of this Act. 15 (c) EFFECTIVE DATE.—The amendment made by 16 subsection (a) shall take effect as if included in section 17 14103 of Public Law 115–97. 18 Æ VerDate Sep 11 2014 04:17 Dec 12, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S2998.IS S2998 kjohnson on DSK79L0C42 with BILLS