On October 9, 2018, TEI filed comments with the United States Department of the Treasury and Internal Revenue Service regarding proposed regulations issued under section 965. Section 965, as amended by the Tax Cuts & Jobs Act enacted in late 2017, imposes a tax on the undistributed earnings of certain foreign subsidiaries of U.S. based multinational corporations. The Institute’s comments focused on the practical aspects of the proposed regulations, including recommendations that the government give taxpayers more time to make the basis shifting election, that the proposed regulations should not double count income when determining the amount of the transition tax, and that taxpayers should be given relief from penalties if they act in good faith. TEI’s comments were prepared under the aegis of the Institute’s Tax Reform Task Force and U.S. International Tax Committee. Benjamin Shreck, TEI Tax Counsel, coordinated the preparation of TEI’s submission.