What This Notice Means
CP247C goes to businesses that elected to pay their section 965 transition tax in installments over 8 years. Section 965 imposes a tax on certain untaxed foreign earnings of foreign corporations with U.S. shareholders.
The notice says the IRS received and processed your income tax return and assessed the amount you reported as the tax you owed, including your section 965 tax. The notice shows the amount assessed.
Your installment election means you pay the section 965 net tax liability over time. The notice reminds you that you must make each annual installment on time under section 965(h). If you don't pay the full amount of an installment on time, you may be charged a failure-to-pay penalty, and the full amount of your remaining net tax liability may become due immediately.
CP947C is the Spanish version of this notice.
What to Do
- If you agree with the tax assessed, no action is required.
- Keep making your annual installment payments on time.
- Expect other mail. This notice may come in addition to other notices about an amount due for the same return. Read each one.
- Keep the notice with your records.
If You Disagree
Call the number on the notice to review your account with a representative. Have your account information ready. You can also write to the address on the notice. Include your employer identification number, the tax year, and the form number. If the IRS doesn't hear from you, it assumes you agree.
Missing an installment is the real risk here. It can make the entire remaining balance due at once.
If you received a CP247C notice and have questions about your section 965 installments, call us at (813) 229-7100.