On Oct. 8, the IRS revised their Questions and Answers about Reporting Related to Section 965 on 2017 Tax Returns, a list of Frequently Asked Questions (FAQs) and answers, to include a “Special Update” informing taxpayers that relief for filing section 965 transfer agreements after the October 9 deadline will be granted. Under proposed regulations, certain corporate taxpayers that elected the installment plan for their section 965 transition tax liability and subsequently transferred substantially all of the assets of their foreign corporation to another entity could be required to file a transfer agreement by Oct. 9, 2018 in order to avoid triggering current liability for deferred transition tax. However, the IRS has recognized that taxpayers lack guidance on how and where to file these agreements, and could therefore not comply with this Oct. 9, 2018 deadline. As a result, the IRS has announced that it will issue future guidance to address the lack of clarity and any transfer agreements filed in accordance with that future guidance will still be considered timely filed. This is welcome relief as many taxpayers, and their tax advisors, had few clues as to how these transfer agreements were to be filed. Taxpayers with transition tax exposure, that have also been involved in subsequent reorganizations of foreign assets, or otherwise triggered acceleration of any deferred transition tax, should monitor for upcoming IRS notices addressing when and how to file any required transfer agreements. The relief granted by the IRS may have a limited timeframe and taxpayers will likely need to act promptly.