Eversheds Sutherland Tax Reform Law Blog
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IRS Modifies Notice 1036 Withholding Tables Incorporating Changes to the Individual Tax Rates

The IRS recently released an updated version of Notice 1036 (includes income tax withholding tables for employers) which integrates the changes made by the recently passed tax legislation. The notice states that employers must implement the withholding tables by February 15, 2018. The IRS anticipates updating its online withholding calculator by the end of February. Read more: New 2018 Withholding Tables Released
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Speaker Ryan Foresees only Technical Corrections to the Tax Reform Bill, Rather Than Major Changes

In an interview with C-SPAN, House Speaker Paul Ryan stated that the bill previously known as the Tax Cuts and Jobs Act would require some technical corrections, such as in the area of international taxation, though he did not offer further details. He anticipates that any corrections to the bill would be small changes. House Ways and Means Committee Chair Keven Brady has also stated that any technical corrections would take time and that he does not expect Congress to immediately take on the technical corrections. Listen to the interview: Interview with Speaker Ryan. Read more: No Major...
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Broad Scope of “Cash” for Tax on Deferred Foreign Income Impacts Financial Sector

The new provision requiring that U.S. companies pay a 15.5 percent tax on deferred foreign earnings to the extent of cash and cash equivalents and a 8 percent tax on additional untaxed foreign earnings produces complications for the financial sector. Companies are reporting that the repatriation tax imposes a heavier burden on the financial sector because such companies typically hold significant cash assets, which cause a corresponding amount of earnings to be taxed at almost double the rate.  Recent IRS guidance states that derivatives, routinely used by banks and broker-dealers, will be...
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CRS Report Analyzes 2017 Federal Tax System In Anticipation of Tax Bill Changes

The Congressional Research Service (CRS) published Report 7-5700 on December 26, 2017, which provides an overview of the federal tax system as in effect through 2017. The report notes that the new tax bill, H.R. 1, will generate broad changes for individuals (personal exemptions; standard deduction) and businesses (different tax rate for pass-through business income; territorial tax system) alike. The report also explains and provides analysis regarding the 2017 individual income tax, corporate income tax and other taxes, including those on insurance, retirement and estates. Additionally,...
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California Proposes Bill to Permit Donations Instead of State Taxes as Challenge to New Federal Tax Bill

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Legal Alert: Tax Reform Bill – Changes to Section 529 Qualified Tuition Programs and Section 529A Qualified ABLE Programs

View the Eversheds Sutherland Legal Alert summarizing the principal provisions of the Final Tax Reform Bill affecting Section 529 Qualified Tuition Programs and Section 529A Qualified ABLE Programs here.
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New York Challenges Federal Government’s Tax Reform Bill as Unconstitutional Double Taxation

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IRS Releases Guidance on the Transition Tax Provision

Last week, the IRS released Notice 2018-07 (the “Notice”), which provides guidance on calculating the so-called “transition tax” of the Tax Cuts and Jobs Act. While the Notice itself does not contain any specific regulations, it does describe the regulations that the IRS plans to issue at a later date, including guidance on the effects that the future regulations will have. The Notice also covers topics like the treatment of related-party transactions and hedging transactions, as well as the effective dates for the transition tax. Read more:  Notice...
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Legal Alert: Insurance Industry Provisions in H.R. 1, the Final Tax Bill

View the Eversheds Sutherland Legal Alert discussing the modifications of importance to insurance companies in the Final Tax Reform Bill here.
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Legal Alert: Party Like it’s 1986: Business Impacts of the Bill Formerly Known as the Tax Cuts and Jobs Act

View the Eversheds Sutherland Legal Alert summarizing the principal provisions of the Final Tax Reform Bill impacting domestic and multinational businesses here.
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Legal Alert: Section 162(q) Raises Questions about Deductibility of Employment Settlement

View the Eversheds Sutherland Legal Alert discussing the impact of the Final Tax Reform Bill on the settlement of employment-related claims here.
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Legal Alert: SEC Staff Provides Disclosure and Accounting Guidance in Response to Recent Tax Reform Legislation

View the Eversheds Sutherland Legal Alert summarizing the guidance issued by the SEC Office of the Chief Accountant and the Division of Corporation Finance, in response to the recent tax reform legislation, regarding the information required to comply with ASC Topic 740, and the disclosure requirements under Item 2.06 of Form 8-K, which requires companies to reflect the impact of tax law changes in the quarter in which the law is enacted...
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President Trump Signs Tax Bill into Law

President Trump signed the tax bill passed by the House and Senate this morning. The bill will be generally effective beginning January 1, 2018. Read the bill text here.  Read more about the bill’s passage here.
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Legal Alert: The Tax Cuts and Jobs Act, Final Cut: A Methods-Based Review of the Tax Bill

View the Eversheds Sutherland Legal Alert discussing the particular provisions of the Final Tax Reform Bill that fall under the umbrella of income tax accounting and accounting methods, and the potential impact such reforms will have on corporate taxpayers, here.
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Title: Tax Bill Passes in House

House Republicans voted to pass the Senate’s revised version of the Tax Cuts and Jobs Acts today. Read More: House sends sweeping GOP tax bill to Trump’s desk
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