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965-C-ohjeet

965-C, Siirtosopimus § 965(h)(3)

Rev joulukuu 2019

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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 965-C  
Transfer Agreement Under Section 965(h)(3)  
(December 2019)  
Section references are to the Internal Revenue  
Code unless otherwise noted.  
with these instructions, they will be  
only be filed by an eligible section 965(h)  
considered to have properly entered into a transferor and eligible section 965(h)  
transfer agreement under section 965(h)  
(3). However, the Commissioner may  
review the transfer agreement and may  
ask additional questions or require  
transferee.  
Future Developments  
When and Where To File  
For the latest information about  
developments related to Form 965-C and  
its instructions, such as legislation  
enacted after they were published, go to  
Within 30 days of the covered acceleration  
event, the original Form 965-C must be  
mailed to the IRS’s Memphis Compliance  
Service Collection Operations at the  
following address:  
additional information, including, for  
example, information about the eligible  
section 965(h) transferee's ability to pay  
the outstanding section 965(h) net tax  
liability. If the Commissioner determines  
that the transfer agreement contains a  
material misrepresentation or material  
omission, or if the additional information  
requested is not provided within a  
Background  
Memphis CSCO  
On December 22, 2017, section 965 of the  
Code (section 965) was amended. As a  
result of the amendment, certain  
taxpayers are required to include in  
income an amount (a section 965(a)  
inclusion amount) based on the  
5333 Getwell Road MS 81  
Memphis, TN 38118  
reasonable time frame (as communicated  
by the Commissioner), then the transfer  
agreement may be rejected as of the date  
of the original acceleration event.  
In addition, both the eligible section  
965(h) transferor and the eligible section  
965(h) transferee must attach a duplicate  
copy of Form 965-C to their tax returns for  
the taxable years during which the  
accumulated post-1986 deferred foreign  
income of certain foreign corporations  
(specified foreign corporations) they own  
either directly or indirectly through other  
entities.  
Alternatively, the Commissioner may  
determine that an acceleration event has  
occurred as of the date the transfer  
agreement was found to have a material  
misrepresentation or material omission.  
covered acceleration event occurs, filed  
by the due date for the returns (with regard  
to any extension of time to file).  
Taxpayers may make an election under  
section 965(h) to pay the section 965(h)  
net tax liability (as defined later in these  
instructions) in installments over a term of  
8 years. However, if an acceleration event  
(as defined in section 965(h)(3) and  
Regulations section 1.965-7(b)(3)) occurs,  
the unpaid portion of all remaining  
installments is generally due on the date of  
the acceleration event. If a covered  
acceleration event (as defined below)  
occurs, such event will not be considered  
to accelerate payment of the section  
965(h) net tax liability if the transferee  
enters into an agreement to be liable for  
the remaining installments due on the  
liability in the same manner as if such  
transferee were the original electing  
taxpayer.  
No extension of time to file Form  
965-C will be granted, and relief is  
Definitions  
!
CAUTION  
not available under Regulations  
Eligible section 965(h) transferee. An  
eligible section 965(h) transferee is a  
single U.S. person that is not a domestic  
pass-through entity and that meets any  
one of the six requirements listed in  
Regulations section 1.965-7(b)(3)(iii)(B)(1)  
(i) through (vi).  
section 301.9100-2 or 301.9100-3 to enter  
into a transfer agreement late.  
A copy of the eligible section 965(h)  
transferor's most recent Form 965-A or  
Form 965-B, as applicable, is required to  
be included with Form 965-C.  
Eligible section 965(h) transferor. An  
eligible section 965(h) transferor is a U.S.  
person with respect to which a covered  
acceleration event occurs. See the  
Note. If the section 965(h) net tax liability  
is adjusted or changed on an amended  
return after the due date for filing the  
transfer agreement, an amended transfer  
agreement is not required and should not  
be filed.  
instructions for Part III, line 1, for when a  
covered acceleration event occurs.  
Section 965(h) net tax liability. In  
general, the section 965(h) net tax liability  
with respect to any U.S. shareholder is the  
excess (if any) of the U.S. shareholder's  
net income tax liability computed with all  
section 965 amounts included over the  
U.S. shareholder's net income tax liability  
without regard to section 965. For details,  
see section 965(h)(6). Also see  
Specific Instructions  
General Instructions  
Purpose of Form  
Part I – Transferor  
Information  
Use Part I to provide the identifying  
information of the eligible section 965(h)  
transferor. Enter the transferor’s complete  
legal name, taxpayer identification  
number, and street address or post office  
box.  
Form 965-C should be used by an eligible  
section 965(h) transferor and an eligible  
section 965(h) transferee to enter into a  
transfer agreement under section 965(h)  
(3). This form sets forth the information  
and representations that must be provided  
to meet the requirements of Regulations  
section 1.965-7(b)(3)(iii)(B)(4) in order to  
enter into a transfer agreement under  
section 965(h)(3). If an eligible section  
965(h) transferor and an eligible section  
965(h) transferee properly complete and  
file this Form 965-C with respect to a  
covered acceleration event in accordance  
Regulations section 1.965-7(g)(10) for  
rules for computing the net 965 tax  
liability.  
Who Must File  
Part II – Transferee  
Information  
The eligible section 965(h) transferor and  
the eligible section 965(h) transferee with  
respect to a covered acceleration event  
must file Form 965-C to meet the  
Use Part II to provide the identifying  
information of the eligible section 965(h)  
transferee. Enter the transferee’s  
complete legal name, taxpayer  
requirements of the eligible section 965(h)  
transferee exception under Regulations  
section 1.965-7(b)(3)(iii). Form 965-C may  
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identification number, and street address  
or post office box.  
Line 5. Enter the date the next installment Transferor signature. This transfer  
payment is due by the transferee in the  
space provided. The transferee must  
make an annual installment payment for  
the section 965(h) net tax liability they  
assume by the due date of their income  
tax return. See Regulations section  
1.965-7(b)(3)(iii)(D) for details.  
agreement (Form 965-C) must be signed  
by a person who is authorized to sign a  
return on behalf of the eligible section  
965(h) transferor listed in Part I. By signing  
Part VI, you declare, under penalties of  
perjury, that you have examined the form,  
and to the best of your knowledge and  
belief, Parts I, III, and IV are true, correct,  
and complete. You also certify that you  
have the authority to execute this transfer  
agreement.  
Part III – Acceleration  
Event  
Line 1. Indicate the type of acceleration  
event leading to this transfer agreement  
by checking box a, b, or c.  
Check box a if the acceleration event  
leading to this transfer agreement is  
described in Regulations section  
1.965-7(b)(3)(iii)(A)(1)(i) or (ii). If you  
check box a, answer the three questions  
below box a.  
Check box b if the acceleration event  
leading to this transfer agreement is  
described in Regulations section  
1.965-7(b)(3)(iii)(A)(1)(iii).  
Part V – Eligible Section  
965(h) Transferee’s Ability  
To Pay Remaining Liability  
Transferee signature. This transfer  
agreement (Form 965-C) must also be  
signed by a person who is authorized to  
sign a return on behalf of the eligible  
Line 6. Check the “Yes” box to confirm  
that the eligible section 965(h) transferee  
is able to make the remaining payments  
required under section 965(h) with respect section 965(h) transferee listed in Part II.  
to the section 965(h) net tax liability being  
assumed. If you check the “No” box, you  
do not meet the requirements to enter into  
a valid transfer agreement.  
By signing Part VI, you declare, under  
penalties of perjury, that you have  
examined the form, and to the best of your  
knowledge and belief, Parts II, III, IV, and  
V are true, correct, and complete. You  
also certify that you have the authority to  
execute this transfer agreement.  
Check box c and box c(1) if the  
acceleration event leading to this transfer  
agreement is described in Regulations  
section 1.965-7(b)(3)(iii)(A)(1)(iv). Also  
answer the question below box c(1).  
Line 7. Check the “Yes” box if the  
leverage ratio of the eligible section 965(h)  
transferee exceeds three to one.  
Otherwise, check the “No” box. The  
leverage ratio means the ratio that the  
total indebtedness of the transferee bears  
to the sum of its money and all other  
assets reduced, but not below zero, by the  
total indebtedness. See Regulations  
section 1.965-7(b)(3)(iii)(B)(6) for more  
information.  
Check box c and box c(2) if the  
acceleration event leading to this transfer  
agreement is described in Regulations  
section 1.965-7(b)(3)(iii)(A)(1)(v). Also  
answer the question below box c(2).  
Paperwork Reduction Act  
Notice  
We ask for the information on this form to  
carry out the Internal Revenue laws of the  
United States. You are required to give us  
the information. We need it to ensure that  
you are complying with these laws and to  
allow us to figure and collect the right  
amount of tax.  
Check box c and box c(3) if the  
acceleration event leading to this transfer  
agreement is described in Regulations  
section 1.965-7(b)(3)(iii)(A)(1)(vi). Also  
answer the question below box c(3).  
Note. The leverage ratio of the eligible  
section 965(h) transferee is a factor the  
Commissioner uses to determine whether  
the eligible section 965(h) transferee has  
the ability to pay the outstanding section  
965(h) net tax liability. A leverage ratio in  
excess of three to one does not by itself  
determine whether or not a transfer  
agreement is valid.  
Covered acceleration event. A person  
satisfies the requirement to have a  
covered acceleration event if that person  
is able to check box a, b, or c based on  
the above instructions.  
You are not required to provide the  
information requested on a form that is  
subject to the Paperwork Reduction Act  
unless the form displays a valid OMB  
control number. Books or records relating  
to a form or its instructions must be  
retained as long as their contents may  
become material in the administration of  
any Internal Revenue law. Generally, tax  
returns and return information are  
Line 2. Enter the date of the covered  
acceleration event in the space provided.  
Line 8. Provide any other pertinent  
information regarding the eligible section  
965(h) transferee's ability to pay the  
section 965(h) net tax liability being  
assumed. This information may include,  
but is not limited to, the adequacy of the  
transferee's income, the value of the  
transferee's assets, and the transferee's  
access to capital.  
Line 3. Provide a detailed description of  
the covered acceleration event in the  
space provided.  
confidential, as required by section 6103.  
Part IV – Report of Unpaid  
Section 965(h) Net Tax  
Liability Being Assumed  
Line 4. Enter the dollar amount of the  
transferor's section 965(h) net tax liability  
remaining unpaid.  
The time needed to complete and file  
this form will vary depending on individual  
circumstances. The estimated burden for  
individual taxpayers filing this form is  
approved under OMB control number  
1545-0123 and is included in the  
Part VI – Terms of  
Agreement  
estimates shown in the instructions for  
their business income tax return.  
By signing this transfer agreement, the  
eligible section 965(h) transferor and the  
eligible section 965(h) transferee agree to  
the terms set forth in Part VI of Form  
965-C.  
Note. The amount of the transferor's  
section 965(h) net tax liability is subject to  
adjustment by the Commissioner. See  
Regulations section 1.965-7(b)(3)(iii)(B)(4)  
(iv).  
Instructions for Form 965-C (12-2019)  
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