The Treasury Department Anticipates Releasing a Notice on IRC 163(j) in the Near Future
Krishna Vallabhaneni, Treasury deputy tax legislative counsel, recently stated that the Treasury Department plans on issuing a notice in the coming weeks to address some of the recent issues related to amended IRC 163(j) (interest expense deductions). Some of the specific issues the notice will address include the treatment of carryovers and limitations under the previous section...EU Finance Ministers Debate the EU’s Response to the 2017 Tax Act
Posted on Feb 20, 2018 in International Tax, News
Finance ministers from key EU countries, including France, Germany and Italy, are questioning whether some of the provisions of the 2017 tax act are contrary to World Trade Organization (WTO) rules. The finance ministers are currently reviewing whether to file a complaint with the WTO out of concern that the tax act will spark a race to the bottom with respect to tax rates. EU finance...
IRS Releases Revenue Procedure Limiting Changes to Annual Accounting Periods
Posted on Feb 15, 2018 in News, Tax Accounting
The IRS has restricted the ability of taxpayers to make certain changes in accounting periods, through the issuance of Revenue Procedure 2018-17. The revenue procedure modifies Revenue Procedure 2002-39 and Revenue Procedure 2006-45, which deal with approval for changes to annual accounting periods. The modification generally denies automatic approval for changes to tax years of...
Eversheds Sutherland Releases Videocast Providing a Basic Overview of International Tax Provisions
Posted on Feb 7, 2018 in International Tax, News
Eversheds Sutherland (US) LLP recently released a videocast which provides a brief overview of the impact of international tax provisions. This short video provides a concise overview of various international provisions in the recent legislation formerly known as the Tax Cuts and Jobs Act, including those related to the reduced corporate tax rate, the shift to a hybrid...
Regulations and Notices to Provide Guidance on New Tax Bill
Posted on Feb 5, 2018 in International Tax, News
As the early guidance period for the new tax bill continues, the Treasury and IRS plan to shift to focusing on developing regulations over the next six months. A less notice-oriented approach is expected, with only five to ten limited-scope notices addressing basic questions, such as section 163(j) business interest issues, anticipated. IRS and Treasury tax reform projects will be...
Chamber of Commerce Provides Feedback on Notice 2018-07
Posted on Feb 2, 2018 in International Tax, News
The U.S. Chamber of Commerce recently released recommendations for further guidance in response to Notice 2018-07, which provides guidance related to section 965 (the transition tax on deferred foreign earnings). The recommendations include excluding short-term loans from foreign affiliates to a U.S. parent from aggregate foreign cash if they have previously triggered a taxable...
IRS is Prioritizing Certain Guidance Related to Pass-through Entities
Posted on Jan 24, 2018 in News, Pass-through Taxation
As the IRS continues to work on guidance for the new tax legislation (formerly known as the Tax Cuts and Jobs Act), the agency is prioritizing certain complex provisions that relate to pass-through entities. In comments to the New York State Bar Association, Clifford Warren, special counsel to the IRS associate chief counsel, identified section 199A (qualified pass-through business...
IRS Modifies Notice 1036 Withholding Tables Incorporating Changes to the Individual Tax Rates
Posted on Jan 17, 2018 in Individual Taxation, News
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...
Speaker Ryan Foresees only Technical Corrections to the Tax Reform Bill, Rather Than Major Changes
Posted on Jan 16, 2018 in International Tax, News
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...
Broad Scope of “Cash” for Tax on Deferred Foreign Income Impacts Financial Sector
Posted on Jan 10, 2018 in International Tax, News
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...
California Proposes Bill to Permit Donations Instead of State Taxes as Challenge to New Federal Tax Bill
Posted on Jan 5, 2018 in News, State and Local Tax
The California legislature has introduced a bill that permits residents to donate to a state “public purpose” fund and receive a dollar-for-dollar tax credit on their returns. This donation is intended to be deductible for federal tax purposes as a means of circumventing the new $10,000 cap on state/local tax deductions included in the recently passed tax bill. White House economic...
New York Challenges Federal Government’s Tax Reform Bill as Unconstitutional Double Taxation
Posted on Jan 3, 2018 in News, State and Local Tax
In his recent speech before the state legislature, New York Governor Andrew M. Cuomo stated that the reduction in the state and local tax deduction reflected in the new tax reform bill is unconstitutional double taxation. The governor further indicated that New York would challenge the provision. Cuomo also said that the state will undergo its own tax revision process, shifting away...
IRS Releases Guidance on the Transition Tax Provision
Posted on Jan 2, 2018 in International Tax, News
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...
President Trump Signs Tax Bill into Law
Posted on Dec 22, 2017 in News
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.
Congress to Begin Voting on the Tax Cuts and Jobs Act Today
Posted on Dec 19, 2017 in Uncategorized
With the Conference Agreement finalized, the Agreement must be approved by both the House and Senate, and once approved, it will head to President Trump for his signature. The House is expected to vote later today, and the Senate will vote soon afterwards, either today or tomorrow. Read more: Tax Voting Starts Tuesday