taxnews.ey.comPrint

03 May 2020

U.S. International Tax This Week for May 1

Ernst & Young's U.S. International Tax This Week newsletter for the week ending May 1 is now available. Prepared by Ernst & Young's International Tax Services group, this weekly update summarizes important news, cases, and other developments in international taxation.

—————————————————————————
Spotlight

The Senate will reconvene next week with the House planning to return to session the week of 11 May, leaving the timing of a fourth major congressional bill to respond to the coronavirus uncertain. Congressional Republicans and Democrats meanwhile are drawing lines on what must — or will not — be included in the next COVID-19 bill, which could top US$2 trillion or more.

The full House Ways and Means Committee and Treasury Secretary Steven Mnuchin held a phone meeting on 29 April, during which they discussed a potential tax package for the next CARES 2/COVID 4 bill that could take shape in the coming weeks. Committee Chairman Richard Neal said Democrats' concerns include: "extremely small businesses' access to Paycheck Protection Program (PPP) money; the quick deadline for certain economic impact payment recipients with dependents to provide their updated information to the IRS; and the need for cities and states to receive federal funds and flexibility with that assistance." Chairman Neal also reportedly urged Secretary Mnuchin to expand the Employee Retention Credit amid questions about how the benefit will apply.

Senate Majority Leader Mitch McConnell continues to be wary of what he views as unfettered COVID-19 stimulus funding, although conceding there will be a state and local component in the next coronavirus bill. The Majority Leader is generally concerned that Congress will act too fast and spend too broadly, thereby unnecessarily adding to the deficit.

The Internal Revenue Service (IRS) this week updated its Foreign Account Tax Compliance Act (FATCA) Frequently Asked Questions (FAQs) with regard to FATCA certifications due on 1 July. The IRS will now grant an automatic extension of time to submit a FATCA certification for an entity that has a due date of 1 July 2020 to 15 December 2020, without the need to file an extension request. The IRS is also providing an extension for Model I IGA jurisdictions to provide their 2019 FATCA data to the US Competent Authority, extending the due date to 31 December 2020.

—————————————————————————
Upcoming Webcasts

Tax in a disrupted market: Update on major foreign tax developments (May 5)
During this Thought Center Webcast, Ernst & Young professionals will discuss areas of risk and concern, as well as opportunities that multinational enterprises should be considering.

Beyond COVID-19: Driving operations in a new economy (A Latin American tax perspective) (May 7)
During this Thought Center Webcast, Ernst & Young professionals will discusss (i) Overview of the key macro-economic factors and outlook for business, (ii) Alternatives for cash upstreaming / optimization in the main Latin American countries, and (iii) Potential tax alternatives and challenges arising due to overall impact on business.

—————————————————————————
Recent Tax Alerts

United States

Africa

Asia

Canada & Latin America

Europe

Middle East

Oceania

—————————————————————————
IRS Weekly Wrap-Up

Internal Revenue Bulletin

 2020-18Internal Revenue Bulletin of April 27, 2020

—————————————————————————
Additional Resources

Ernst & Young Client Portal, the leading source for news, analysis, and reference materials for corporate tax professionals, has a variety of content of interest to international tax practitioners, including:

— International Tax Online Reference Service. Key information about, and important tax developments from, 56 foreign jurisdictions, including information on tax rates, interest rates and penalties, withholding, and filing dates.

— EY/Passport. EY/Passport is your guide to planning ventures in the global economy, offering a wealth of tax and business knowledge on more than 150 countries.

Because the matters covered herein are complicated, U.S. International Tax This Week should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.

Document ID: 2020-1175

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2025, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement