VT: State issues guidance on reporting Section 965 Income

The Vermont Department of Taxes recently issued guidance on how different types of taxpayers should report section 965 income. The guidance notes that corporate taxpayers are generally instructed to enter the amount from Line 28, less Line 29b, from federal Form 1120 on Line 1 of their Vermont corporate return. For tax year 2017, however, taxpayers must also include the amount reported on IRC 965 Transition Tax Statement, Line 1, less the deductions reported on Line 3 of the statement. All Vermont taxpayers with a federal requirement to file an IRC 965 Transition Tax Statement must submit a copy of that statement with their Vermont tax return. The guidance also confirms that Vermont does not allow the election to pay section 965 liability over an eight-year period. Please stay tuned to TWIST for more guidance on the state treatment of section 965 income.