Prospects for Year-End Tax Legislation Dim
Posted on Dec 6, 2018 in International Tax
Democratic members of the Senate Finance Committee, including Benjamin Cardin and ranking minority member Ron Wyden, have expressed doubt that the Retirement, Savings and Other Tax Relief Act of 2018 will pass this year. While the bill includes provisions for the retroactive application of tax extenders through 2018, several technical corrections to the Tax Cuts and Jobs Act, and...
IRS to Consider Changing Section 199A Aggregation Rules Based on Comments
Posted on Nov 13, 2018 in Pass-through Taxation
IRS official Benjamin Weaver stated that the IRS is open to changing the aggregation rules set forth in the proposed section 199A pass-through deduction regulations since they are not “statutorily derived.” Weaver stated that the IRS has received numerous comments on the proposed regulations, particularly on the requirement that attributes of multiple businesses be aggregated at the...
Treasury and IRS Issue Proposed Regulations for Section 956
Posted on Oct 31, 2018 in International Tax
Treasury and the IRS have issued proposed regulations (REG-114540-18) that would reduce the inclusion determined under section 956 for certain domestic corporations that own stock in controlled foreign corporations. The proposed regulations are intended to harmonize the application of section 956 and the participation exemption system (section 245A) enacted under the Tax Cuts and...
IRS Releases Opportunity Zone Guidance
Posted on Oct 19, 2018 in Individual Taxation, Pass-through Taxation
On October 19, 2018, the IRS released proposed regulations (REG-115420-18) concerning opportunity zones (sections 1400Z-1 and 1400Z-2). Opportunity zones were created by the Tax Cuts and Jobs Act and allow tax benefits for investments in low-income communities, through what are termed qualified opportunity funds. Among other items, the proposed regulations provide taxpayers with...
Treasury Guidance May Shield Opportunity Zone Transfers From Capital Gains Tax
Posted on Oct 12, 2018 in Individual Taxation
In a conversation with reporters, Senator Tim Scott, who helped draft the Tax Cuts and Jobs Act, stated that he has encouraged Treasury and the IRS to adopt guidance that would allow investors to transfer funds between opportunity zones without subjecting the transfers to federal capital gains tax. His comments are in reference to new section 1400Z-2 of the Code, which was added by the...
Treasury Official Clarifies Section 199A De Minimis Rules
Posted on Oct 10, 2018 in International Tax
The proposed regulations under new section 199A, which allows a 20% deduction for qualifying business owners, provide a de minimis rule which generally provides that a business will not be treated as a disqualified “specified service trade or business” if less than 5% or 10% of the gross receipts (depending on the amount of the business’s gross receipts) are attributable to certain...
IRS To Extend Transfer Agreement Deadline
Posted on Oct 10, 2018 in International Tax
Section 965, enacted by the TCJA, imposes a one-time transition tax on certain U.S. shareholders. The proposed regulations under section 965 require corporations that have elected to make transition tax payments pursuant to an eight-year installment plan and have transferred substantially all of their assets to another corporation file certain transfer agreements by October 9. At the...
Proposed GILTI Regulations to Be Published in Federal Register
Posted on Oct 8, 2018 in International Tax
The proposed regulations for the global intangible low-taxed income (“GILTI”) under section 951A (REG-104390-18) are set to be published in the Federal Register on October 10. Released on September 13, the regulations set forth new reporting requirements and rules for calculating GILTI inclusions. Public comments on the proposed GILTI regulations must be received by December 9. 2018,...
Treasury and IRS Guidance will not Address Qualified Improvement Property
Posted on Oct 5, 2018 in Tax Accounting
During an ABA Tax Section meeting in Atlanta on October 5, 2018, officials from the Treasury Department and the IRS announced that they will not be able to provide an administrative fix for the drafting error in the qualified improvement property provision of section 168(k). Rather, the officials stated that Congress must make a technical correction, as the agencies do not have...
IRS to Issue Proposed Regulations on Market Discount
Posted on Sep 27, 2018 in News, Tax Accounting
The IRS and Treasury Department have recently announced (Notice 2018-80) that they plan to issue guidance providing that market discount is not includible in income under section 451(b), which was added to the Code by the Tax Cuts and Jobs Act. Under section 451(b), accrual method taxpayers generally must include an amount in gross income no later than when it is included in income in...
House to Vote on Tax Reform 2.0 on Thursday and Friday
House Ways and Means Committee Chair Kevin Brady recently stated the House votes for Tax Reform 2.0 are scheduled to occur on Thursday and Friday. H.R. 6757, the Family Savings Act of 2018, and H.R. 6756, the American Innovation Act of 2018, are scheduled for votes on Thursday. H.R. 6760, the Protecting Family and Small Business Tax Cuts Act of 2018, is scheduled for vote on Friday....Proposed GILTI Tax Regulations are Currently Under Review by the OMB
Posted on Aug 23, 2018 in International Tax, News
According to the Office of Budget and Management (OMB) website, the proposed regulations on section 951A were received on August 22, 2018 and are currently under review. Section 951A, a provision added by the Tax Cuts and Jobs Act, addresses the inclusion of global intangible low-taxed income by United States shareholders. Notice on OMB Website: Pending EO 12866 Regulatory...
AICPA and CIMA US Tax Reform Conference 2018
Posted on Aug 7, 2018 in International Tax
Eversheds Sutherland is the proud lead sponsor of the Association of International Certified Professional Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA) US Tax Reform Conference 2018 on September 17, 2018, at the Jumeirah Carlton Tower Hotel in London, United Kingdom. The US and International Eversheds Sutherland Tax team will be chairing the event and...
Proposed Transition Tax Regulations Released
Posted on Aug 1, 2018 in International Tax, News
The IRS has released proposed regulations on section 965, a provision created by the 2017 TCJA, which imposes a one-time transition tax on accumulated earnings of foreign subsidiaries of U.S. multinationals. Read more: IRS Floats Rules On Transition Tax On Foreign Earnings; REG-104226-18
Tax Reform 2.0 Outline Released with Three Main Themes
Posted on Jul 25, 2018 in Employee Benefits, Individual Taxation
House Ways and Means Committee Chairman Kevin Brady recently released an outline of the planned tax reform 2.0 legislation. The tax package will focus on making the individual and small business tax cuts permanent; promoting family savings through retirement and section 529 education savings programs; and encouraging the creation and development of new businesses. The legislation will...