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 The TCJA imposes a one-time tax on a 10% or greater U.S. shareholder’s share of the accumulated and previously untaxed foreign earnings and profits of specified foreign corporations (SFCs). SFCs are defined as CFCs and other foreign corporations having a domestic corporate shareholder with at least 10% ownership. The post-1986 accumulated earnings of all SFCs will be treated as an increase to current-year Subpart F income and mandatorily deemed repatriated to their “U.S. shareholders.”

 Repatriated earnings held in cash and cash equivalents will be taxed at a 15.5% rate, and the remaining amount of earnings held in illiquid assets will be taxed at an 8% rate. For 10% U.S. C corporation shareholders, a proportional, partial foreign tax credit is allowed.

 The amount of accumulated foreign earnings and profits subject to mandatory repatriation will be determined as of November 2, 2017, or December 31, 2017, whichever is greater. The first installment (or the entire amount) is due by the original due date of the tax return filed for the last tax year beginning before January 1, 2018, without regard to extensions. For calendar-year filers, this would be the tax year beginning January 1, 2017, and ending December 31, 2017, which means that the first installment (or the entire amount) was due April 17, 2018.

 For S corporations subject to the deemed repatriation tax, there is a special provision that defers the tax until the S corporation sells substantially all of its assets, ceases to conduct business, changes its tax status, or the electing shareholder transfers its stock.