TaxGuided
United States IRC sections

Statute section

IRC section 965

Treatment of deferred foreign income

Country

United States

Section

965

Updated

2026-05-20

Operative text

Section 965, enacted by TCJA, required U.S. shareholders of certain foreign corporations to include in income their share of post-1986 accumulated deferred foreign earnings as a one-time transition tax. The headline rates were 15.5 percent for cash and equivalents and 8 percent for non-cash assets.

Amendment history

2017-12-22

Pub. L. 115-97

TCJA enacted Section 965 as the one-time transition tax.

Cross-references

26 U.S.C. 951

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