May 14, 2018
Anticipated timing for Treasury regulations on several TCJA international provisions
Two recent releases provide an update on the timing for guidance on the international provisions included in the Tax Cuts and Jobs Act of 2017 (TCJA). The OMB Office of Information and Regulatory Affairs (OIRA) Spring Agenda lists numerous planned Treasury regulations, including several on international TCJA provisions, and also includes anticipated timelines for the projects.
Regulatory projects listed in the OIRA Spring Agenda include:
1. Proposed regulations on the Section 965 transition tax, planned for August 2018
2. Proposed regulations on foreign tax credit issues arising under the TCJA, planned for August 2018
3. Proposed regulations on the inclusion of global intangible low-taxed income (GILTI) by under Section 951A, planned for September 2018
4. Proposed regulations on the base-erosion and anti-abuse tax (BEAT) under Section 59A, planned for October 2018
5. Proposed regulations on dividend received deduction under Section 245A and branch loss recapture issues under Section 91, planned for April 2019
In addition, Treasury/IRS released a third quarter update to the 2017-18 Priority Guidance Plan on projects anticipated to be released during the guidance plan year ending June 30, 2018. For a detailed discussion of the international projects included in the 2017-18 initial plan, see Tax Alert 2017-1782.
Treasury/IRS previously added projects implementing some TCJA international provisions (Sections 965 and 163(j)) to the second quarter update to the Priority Guidance Plan that was released in February 2018 (see Tax Alert 2018-0298). The third quarter update contains 13 additional projects, and adds one new international project:
— Final regulations under Sections 7874, 367, 956, 7701(l), and 304 regarding inversions and related transactions (temporary and proposed regulations were published on April 8, 2016; see Tax Alert 2016-0630).
The actual release of guidance on TCJA provisions can obviously be impacted by many factors, and the anticipated release dates indicated by Treasury/IRS and OIRA are not certain. Nonetheless, it is welcome news that the government is prioritizing these items, especially for the TCJA provisions that are currently effective.