Indiana IRC § 965 Conformity

As of Dec. 31, 2017, the IRS requires, under IRC § 965, any untaxed foreign earnings or profits to be treated as  repatriated dividends that must be reported on a taxpayer’s state and federal tax returns.  For federal purposes, the statute allows dividend received deduction for a portion of the foreign earnings in determining federal adjusted gross income.

Where taxpayers have foreign earnings or profits that have not been reported to the Internal Revenue Service or the Indiana Department of Revenue, they should be aware of the impact to their 2017 Indiana returns and the nuances between federal and state treatment of IRC § 965 repatriated dividends