Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Finance > Taxpayers need option to direct application of Section 965 Over-payments, AICPA tells Treasury and IRS

Taxpayers need option to direct application of Section 965 Over-payments, AICPA tells Treasury and IRS

Published by Gbaf News

Posted on September 18, 2018

3 min read

Last updated: January 21, 2026

Apple to narrow iPhone 14 production lag by shifting manufacturing to India - Global Banking & Finance Review — This image illustrates Apple's strategic shift to begin iPhone 14 production in India, reducing the typical production lag from China. This move highlights the growing importance of India in Apple's manufacturing strategy amid geopolitical tensions.

Certain taxpayers suffer negative consequences from Treasury and IRS decision
AICPA urges Treasury and IRS to reverse conclusion in FAQs and IRS Chief Counsel Memorandum

The American Institute of CPAs (AICPA) today urged the U.S. Department of the Treasury and the Internal Revenue Service (IRS) to modify two posted FAQs and an IRS Chief Counsel Memorandum regarding the application of 2017 tax overpayments to a taxpayer’s Internal Revenue Code section 965 installment payments, which apply to certain specified foreign corporations.

Annette Nellen, CPA, CGMA, Esq., chair of the AICPA Tax Executive Committee, wrote in the letter that the AICPA “remains concerned with the negative impact on certain taxpayers of the decision by the Treasury and the IRS regarding the application of overpayment resulting from 2017 estimated tax payments and extension payments.”

“The AICPA urges Treasury and the IRS to reverse the conclusion reached in Q&A 13 and Q&A 14 posted to the IRS website on April 13, 2018 and explained in a Chief Counsel Memorandum (PMTA 2018-16) dated August 2, 2018” Nellen stated.

Nellen recommended that taxpayers should instead have the ability to direct the application of any overpayment resulting from their combined 2017 estimated taxes and 2017 extension payments in some combination of the following:

Application to 2018 estimated tax liability (non-section 965 tax liability);
Refund to the taxpayer in whole or partial amounts; or
Application to one or more future section 965(h) installment payments.

“Allowing taxpayers a choice in how their tax payments are applied is permissible under the relevant Internal Revenue Code sections, consistent with the 8-year installment payment period enacted as part of code section 965(h) and necessary for the fair and sound administration of the tax system,” she wrote.

Certain taxpayers suffer negative consequences from Treasury and IRS decision
AICPA urges Treasury and IRS to reverse conclusion in FAQs and IRS Chief Counsel Memorandum

The American Institute of CPAs (AICPA) today urged the U.S. Department of the Treasury and the Internal Revenue Service (IRS) to modify two posted FAQs and an IRS Chief Counsel Memorandum regarding the application of 2017 tax overpayments to a taxpayer’s Internal Revenue Code section 965 installment payments, which apply to certain specified foreign corporations.

Annette Nellen, CPA, CGMA, Esq., chair of the AICPA Tax Executive Committee, wrote in the letter that the AICPA “remains concerned with the negative impact on certain taxpayers of the decision by the Treasury and the IRS regarding the application of overpayment resulting from 2017 estimated tax payments and extension payments.”

“The AICPA urges Treasury and the IRS to reverse the conclusion reached in Q&A 13 and Q&A 14 posted to the IRS website on April 13, 2018 and explained in a Chief Counsel Memorandum (PMTA 2018-16) dated August 2, 2018” Nellen stated.

Nellen recommended that taxpayers should instead have the ability to direct the application of any overpayment resulting from their combined 2017 estimated taxes and 2017 extension payments in some combination of the following:

Application to 2018 estimated tax liability (non-section 965 tax liability);
Refund to the taxpayer in whole or partial amounts; or
Application to one or more future section 965(h) installment payments.

“Allowing taxpayers a choice in how their tax payments are applied is permissible under the relevant Internal Revenue Code sections, consistent with the 8-year installment payment period enacted as part of code section 965(h) and necessary for the fair and sound administration of the tax system,” she wrote.