Treasury and IRS Release Final and Proposed FTC Regulations
Posted on Dec 2, 2019
On December 2, the Treasury and the IRS released final and proposed regulations with respect to the determination of the foreign tax credit relating to changes made to applicable law by the Tax Cuts and Jobs Act. The regulation package addresses the allocation and apportionment of deductions, foreign tax redeterminations, and the treatment of overall foreign losses, among other items. Read More: Final and Temporary Regulations Proposed...
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Treasury and IRS Release Final and Proposed BEAT Regulations
Posted on Dec 2, 2019
On December 2, the Treasury and the IRS released final and proposed regulations under section 59A. Section 59A imposes a base erosion and anti-abuse tax (or BEAT), which generally operates as a minimum tax on income without regard to certain deductible payments made to foreign related parties. The final regulations implement BEAT generally, and the proposed regulations provide guidance with respect to the determination of a taxpayer’s aggregate group, provide an election to waive deductions, and detail application of BEAT to partnerships. Read More: Proposed Regulations Final...
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Eversheds Sutherland’s TEI Portland Chapter Seminar
Posted on Nov 25, 2019
Please view our presentations from Eversheds Sutherland’s TEI Portland Chapter Seminar. Methods to the Madness – Speakers: Mary Monahan and Robb Chase Brave New World – Speakers: Daniel Nicholas and Ben Jones The New Worldwide Territoriality – Speakers: Robb Chase, Mary Monahan, Ben Jones, Daniel Nicholas Best Practices for Resolving State Tax Disputes – Speaker: Tim...
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Bill to Correct Qualified Improvement Property Glitch Fails to Gain Traction in the House
Posted on Nov 22, 2019
On Nov. 20, the House of Representatives failed to approve a motion that would have attached the Restoring Investment in Improvement Act (H.R. 1869) to the Workplace Violence Prevention for Health Care and Social Service Workers Act (H.R. 1309). H.R. 1869 would correct a drafting error in the Tax Cuts and Jobs Act changes to section 168 that prevents qualified improvement property from being eligible for full expensing. Specifically, while qualified improvement property was intended to be eligible for full expensing, a drafting error failed to assign a useful life to the class of property,...
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Eversheds Sutherland Year-End Tax Seminar – Back to the Future: The tax and legal outlook for multinational companies, November 21, 2019, Philadelphia, PA
Posted on Nov 21, 2019
Please view our presentations from Eversheds Sutherland’s year-end tax seminar on federal and international tax planning. Planes Trains and Automobiles – Practical Considerations for a Mobile Workforce – Speaker: Mary Monahan War Games – Tax Trade and Tariffs – Speakers: Robb Chase, Katie Blaszak and Ben Jones Wall Street – Market Trends in Global M&A – Speakers: Katie Blaszak and Taylor Kiessig Risky Business – Impact of Reforms on Commercial Transaction – Speakers: Ellen McElroy and Katie Blaszak The Firm – Navigating Privilege and...
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IRS LB&I Division Announces Section 965 Compliance Campaign
Posted on Nov 5, 2019
On November 4, the IRS Large Business and International Division (LB&I) announced a new compliance campaign directed at promoting compliance with section 965. Section 965, enacted by the Tax Cuts and Jobs Act, generally imposes a transition tax on a US shareholder’s pro rata share of the accumulated earnings and profits of certain foreign corporations. The LB&I campaign will involve conducting examinations and “focus on identifying and addressing taxpayer populations with a potential material compliance risk.” Read More: Large Business and International Active...
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IRS Releases Final Regulations under Section 6050Y
Posted on Oct 28, 2019
The IRS has issued final regulations under section 6050Y, which was added by the TCJA. Generally, section 6050Y requires information reporting with respect to certain life insurance contract transactions, such as payments of reportable death benefits. The final regulations detail the reporting requirements, such as the manner of reporting and the required timing of such reporting. Read the Final Regulations: TD 9879 Read the Proposed Regulations:...
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Proposed Regulations and New Revenue Procedure Address the Repeal of Section 958(b)(4)
Posted on Oct 1, 2019
Treasury and the IRS have released proposed regulations and a revenue procedure addressing the repeal of section 958(b)(4). Prior to its repeal by the Tax Cuts and Jobs Act, section 958(b)(4) prevented downward attribution from a foreign person for purposes of determining whether a foreign entity was a controlled foreign corporation under section 957. The proposed regulations address the impact of the repeal on various other Code provisions, such as sections 267, 332, and 1297. The revenue procedure describes changes made with respect to filing requirements to Form 5471 and also provides...
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IRS Provides Final Guidance on Rental Real Estate Safe Harbor under Section 199A
Posted on Sep 26, 2019
The IRS recently released Rev. Proc. 2019-38, which provides a safe harbor for treating a rental real estate enterprise as a single trade or business for purposes of section 199A. Section 199A generally allows a deduction of up to 20% of the taxpayer’s qualified business income from each of its qualified trades or businesses. The safe harbor had originally been proposed by the IRS in Notice 2019-07. Read More: Rev. Proc. 2019-38, Notice...
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OIRA Receives Proposed and Final BEAT Regulations
Posted on Sep 18, 2019
The Office of Information and Regulatory Affairs (OIRA) has received both proposed and final regulations related to the base erosion and anti-abuse tax (BEAT) under section 59A. Section 59A generally operates as a minimum tax on income without regard to certain deductible payments made to foreign related parties. The proposed and final regulations are not deemed to be economically significant, meaning that OIRA will have 45 days to review the regulations. Read More: OIRA Begins Review of BEAT...
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IRS Releases Final Regulations under Section 168(k)
Posted on Sep 13, 2019
Today, Treasury and the IRS released final regulations under section 168(k). Amended by the Tax Cuts and Jobs Act, section 168(k) generally allows full expensing of certain depreciable property. The final regulations address the requirements to qualify for the additional depreciation deduction and elections related to the deduction. Read the final regulations: TD 9874 Read the proposed regulations:...
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OIRA Completes Review of Second Set of Proposed Regulations under Section 168(k)
Posted on Sep 11, 2019
The Office of Information and Regulatory Affairs (OIRA) recently completed its review of a second set of proposed regulations under section 168(k). Amended by the Tax Cuts and Jobs Act, section 168(k) generally allows full expensing of certain depreciable property. OIRA has not released information as to the contents of the proposed regulations, and the release of this set of proposed regulations may be delayed since the first set of proposed regulations under section 168(k) has not yet been finalized. Read More: Second Batch of Proposed Depreciation Rules Clears Reg...
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IRS Releases Proposed Regulations under Section 451
Posted on Sep 5, 2019
The IRS has released proposed regulations under section 451(b) and (c), which were amended by the Tax Cuts and Jobs Act. Section 451(b) generally provides that a taxpayer must recognize income no later than when the taxpayer takes the income into account on its applicable financial statement, and section 451(c) provides rules regarding the timing of the recognition of advance payments. Read the Proposed Regulations: Proposed Section 451(b) Regulations; Proposed Section 451(c)...
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IRS Working to Address Double-Gain-Recognition Issue in Final GILTI Regulations and Temporary Section 245A Regulations
Posted on Sep 5, 2019
Speaking at an event on September 4, John Merrick, senior-level counsel to the IRS associate chief counsel (international), stated that the IRS is aware that the interaction between the anti-avoidance rules of section 245A (the participation exemption deduction) and section 951A (global intangible low-taxed income, GILTI) could result in double gain recognition for taxpayers and is working to correct this issue. Specifically, there is concern that a deduction could be denied for purposes of calculating the GILTI tested income of a controlled foreign corporation under the disqualified basis...
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Treasury and IRS Allow Domestic Partnerships and S Corporations to Apply Certain Proposed GILTI Regulations to Taxable Years Ending Before June 22, 2019
Posted on Aug 26, 2019
The Department of the Treasury (Treasury) and the IRS recently released Notice 2019-46. The notice allows a domestic partnership or S corporation to apply Prop. Treas. Reg. § 1.951A-5 to taxable years ending before June 22, 2019, so long as the domestic partnership or S corporation meets the notification and reporting requirements described in the notice. Prop. Treas. Reg. § 1.951A-5 addresses the treatment of global intangible low-taxed income (GILTI) inclusion amounts and adjustments to earnings and profits to account for tested losses. Read More: Notice...
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