IRS sec 965: says wire in payment. I am extending my return, and I expect to be in a refund position, both with and without the 965 tax, I plan to ignore this. Comments?

[tadlow]

Due to new tax bill December 2017 my investment in a partnership resulted in income to me for repatriation tax on the K-1. All rules are new and guidance keeps coming, but IRS says the tax must be computed separately and a statement signed AND the money separately wired to them. In my case, the amount is small relative to my taxes and I’m in a net refund position, so seems best to ignore this. I’m asking if anyone has better guidance

[MichaelL1]

As long as you are in compliance with this: (which you would be if there is no tax due, however, to be safe what I would do, say the amount of Section 965 is $1,000 and I am in the 25% tax bracket, I would send in $250 with my extension). It may not be necessary, but to be safe that is the approach I would take. 

Q6.  When must an election with respect to section 965 of the Code be made?

A6.  An election with respect to section 965 of the Code must be made by the due date (including extensions) for filing the return for the relevant year. However, even if an election is made under section 965(h) of the Code to pay a net tax liability under section 965 of the Code in installments, the first installment must be paid by the due date (without extensions) for filing the return for the relevant year.

[tadlow]

Yes, that would be the safer route, although still does not meet their requirement of separately wiring the money for the specific tax. Going against me is since I am in a refund position, I will not make a payment when I do file in October, so there will never be a wire. I think only way to meet that requirement is wire it now and just increase my refund position (I’ve already filed extension electronically) also, the election you reference is if I want to pay in installments, which is a hassle I don’t want, better to get this one time thing handled and done. So, there is no election, but of course taxes are due by April 16 this year.