Guidance, Please. Companies Seek Help on Repatriation Taxes

U.S. multinationals are likely to have a lot of work ahead to bring back their overseas cash under tax reform legislation – and they say they need a lot of help, quickly, from the Treasury Department.

The conference report on its way to being signed into law lets companies take a 100 percent deduction on virtually all of their foreign dividends going forward.

In return, the companies have to bring back all the earnings and profits they’ve stockpiled in other countries and pay a one-time “deemed repatriation” tax, although Congress would let them space the payment over eight years.

Among questions for Treasury: What is cash? The bill calls for a 15.5 percent tax rate for cash and 8 percent for “illiquid” assets, and says Treasury can define the list of “cash” assets.

  Read Alison Bennett’s story here.