The U.S. Internal Revenue Service has granted Americans living overseas a one-year break from a "repatriation tax" enacted in the 2017 U.S. tax law, the Financial Times reported.
The one-time 15.5% tax, which applies to U.S. citizens and green card holders owning more than 10% of a "controlled foreign corporation," will affect an estimated 1 million people, the FT report said. The tax must be paid over eight years.
Originally aimed at large multinational companies, the levy unexpectedly snagged smaller business. It was scheduled to be implemented in March, but was delayed until mid-June.
Organizations representing Americans living overseas have called for the law to be changed. The delay gives those groups time to lobby Congress for a fix.
