Internal Revenue Code Section 965 requires certain United States shareholders to pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States. This was part of the Tax Cuts and Jobs Act of 2017, impacting federal returns. This would be from information on your investments.
The California Franchise Board does not follow the federal for these earnings, so they are treated differently on your California state return.
Here is a California Franchise Board article about IRC965 with links for additional information. California and IRC965
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