WASHINGTON, D.C. – Today, Senator Mike Braun (R-IN), Senator Pat Roberts (R-KS), and Senator Kyrsten Sinema (D-AZ) introduced the Tax Payment Clarification Act (S. 2998) to fix the tax code to ensure the Internal Revenue Service (IRS) follows congressional intent regarding structured payments of corporate tax liabilities.

“Through an unintended loophole companies are being denied access to money that they overpaid to the IRS and this legislation fixes that problem,” said U.S. Senator Mike Braun. “As an former Main Street entrepreneur, I know firsthand that this legislation will help small businesses create more jobs and grow our economy.”

“Taxpayers should not be punished for attempting to follow the law,” said Senator Pat Roberts. “This legislation would allow the provision of the tax code to function as Congress intended, would return to businesses much-needed cash flow and would likely spur economic growth.”

“Arizona businesses deserve a tax code that is straightforward, fair, and supports job growth. Our bipartisan legislation ensures Arizona businesses can plan for the future and create more jobs for hard-working Arizonans,” said Sinema.


In 2018, at least 115 businesses that overpaid their regular income tax liability were denied their expected refunds if they had an outstanding section 965 “transition tax” liability, notwithstanding that such taxpayers had elected to pay in installments and the first installment had been satisfied. The inability to receive a refund has affected the near-term cash flow of these companies and hindered their ability to expand operations, hire workers, and make investments. Businesses were provided an option to pay their section 965 transition tax in installments over an eight-year period, and this bill addresses a technical issue that has prevented a credit or refund of regular income tax overpayments in the initial year in which the transition tax applies.