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November 15, 2020
2020-2686

U.S. Tax This Week for November 13

Ernst & Young's U.S. Tax This Week newsletter for the week ending November 13 is now available. Prepared by Ernst & Young's National Tax Department in Washington, D.C., this weekly update summarizes important news, cases, and other developments in U.S. taxation.

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Top of the Week

EU imposes countermeasures on US origin goods

The European Union (EU) announced on November 9, countermeasures to be imposed against the United States (US) pursuant to a decision issued by a World Trade Organization (WTO) arbitrator in October 2020.The countermeasures, published in the Official Journal of the EU, consist of a 15% punitive tariff on civil aircrafts and a 25% punitive tariff on an array of other US origin goods, such as spirits, food products and machinery, and were made effective 10 November 2020. EY Tax Alert 2020-2674 has details.

New state requirements for employee notices about unemployment insurance added because of COVID-19

Letting employees know about their right to unemployment insurance, and how to claim benefits if eligible, has long been a requirement for employers in most states. Our survey of state workforce agency websites shows that except for Arizona, Connecticut, Hawaii, New Hampshire, Ohio and South Carolina, all states require that employers post a notice in the workplace about the availability of unemployment insurance (UI) benefits to eligible workers. EY Tax Alert 2020-2671 has details.

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Upcoming Webcasts

Election 2020 | Now. Next. Beyond. (November 16)
What do the first 100 days of a President-elect Biden, as recognized by the Associated Press, administration look like as he shapes the US legislative and regulatory environment on a range of issues affecting workers, companies and the economy? During this Thought Center Webcast, Ernst & Young professionals will discuss the key issues during these unprecedented times that will have a lasting impact on you and your business now, next and beyond.

Election 2020 | What’s next for the financial services industry (November 18)
During this Thought Center Webcast, Ernst & Young professionals will discuss the latest insights and perspectives on the US election and how the outcome could shape the policy, regulatory and tax environment for the industry.

BorderCrossings (November 19)
During this Thought Center Webcast, Ernst & Young professionals will discuss the complexities posed not only by federal tax reform, but also by the recent election, developments in global finance and the digitalization of the economy.

US corporate income tax compliance (December 1)
During this Thought Center Webcast, Ernst & Young professionals will discuss navigating the challenges of complying with the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Tax Cuts and Jobs Act and preparing for Tax Year 2020 (TY20) and beyond.

Navigating recent TCJA regulations and US election impacts for life sciences (December 2)
During this Thought Center Webcast, Ernst & Young professionals will discuss the potential impacts of the election and what that could mean for life sciences companies, as well as insights and opportunities based on what we’re seeing across the sector.

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Recent Tax Alerts

Internal Revenue Service

— Nov 11: IRS announces plans to issue proposed regulations on deductibility of certain SALT payments by partnerships and S corporations (Tax Alert 2020-2659)

— Nov 09: TE/GE issues annual Program Letter for FY 2021 and creates new Compliance Programs and Priorities webpage (Tax Alert 2020-2656)

— Nov 09: IRS provides election for taxpayers utilizing IRC Section 168(k) bonus depreciation (Tax Alert 2020-2646)

— Nov 06: Proposed regulations would revamp creditability rules for foreign income taxes (Tax Alert 2020-2645)

— Nov 06: QUEST Economic Update highlights key US and global economic trends — November 6, 2020 (Tax Alert 2020-2638)

International

— Nov 12: PE Watch: Latest developments and trends, November 2020 (Tax Alert 2020-2683)

— Nov 12: OECD releases Spain Stage 2 peer review report on implementation of Action 14 minimum standard (Tax Alert 2020-2682)

— Nov 11: EU imposes countermeasures on US origin goods (Tax Alert 2020-2674)

— Nov 11: Canada releases draft legislation for the Canada Emergency Rent Subsidy (Tax Alert 2020-2672)

— Nov 11: Trade Watch | Issue 3 2020 (Tax Alert 2020-2670)

— Nov 10: Australian Government introduces new Payment Times Reporting Scheme (Tax Alert 2020-2666)

— Nov 10: USTR suspends GSP for certain Thai origin goods, Commerce issues preliminary determination on Vietnam CVD case (Tax Alert 2020-2665)

— Nov 10: France proposes new e-invoicing and e-reporting obligations from 2023 (Tax Alert 2020-2664)

— Nov 10: UK implements new e-commerce VAT rules effective 1 January 2021 (Tax Alert 2020-2663)

— Nov 10: Incentive deduction for the commercialization of innovations in Quebec discussed (Tax Alert 2020-2660)

— Nov 09: Brazilian Supreme Court holds software sales will not be subject to state value-added tax (Tax Alert 2020-2653)

— Nov 09: Singapore's Jobs Growth Incentive program discussed (Tax Alert 2020-2652)

— Nov 06: German Ministry of Finance publishes guidance on German taxation of extraterritorial intellectual property (Tax Alert 2020-2647)

— Nov 06: Canada introduces Bill C-9 to implement new rent subsidy and amend current wage subsidy (Tax Alert 2020-2644)

— Nov 06: Ghana publishes Transfer Pricing Regulations 2020 (Tax Alert 2020-2643)

— Nov 06: Ontario budget 2020-21 discussed (Tax Alert 2020-2641)

— Nov 06: Post Brexit UK-Switzerland immigration perspective provided (Tax Alert 2020-2633)

Legislation

— Nov 09: Joe Biden is President-elect: what's next for US tax and trade policy? (Tax Alert 2020-2657)

— Nov 09: Biden projected to be next president: Policy possibilities (Tax Alert 2020-2654)

— Nov 09: How the US general election impacts the global corporate tax outlook (Tax Alert 2020-2650)

— Nov 06: Eye on the Election (November 6) (Tax Alert 2020-2640)

States

— Nov 12: Kentucky issues draft 2021 withholding tables and revised Form W-4, as well as 2020 Form W-2 filing reminders; all employers must file and pay electronically by 2022 (Tax Alert 2020-2680)

— Nov 12: South Carolina issues 2021 withholding tables and Form SC W-4 changes, as well as 2020 Form W-2 filing reminders (Tax Alert 2020-2679)

— Nov 12: Rhode Island issues guidance on ACA reporting deadlines (Tax Alert 2020-2678)

— Nov 11: New state requirements for employee notices about unemployment insurance added because of COVID-19 (Tax Alert 2020-2671)

— Nov 10: Ohio Supreme Court upholds constitutionality of centralized filing and administration of municipal net-profits tax (Tax Alert 2020-2667)

— Nov 10: Colorado voters approve paid family and medical leave insurance program; premiums to begin in 2023 (Tax Alert 2020-2661)

— Nov 09: San Francisco approves ballot initiatives on increasing gross-receipts tax and taxing companies with certain CEO pay ratios (Tax Alert 2020-2655)

— Nov 09: New Jersey enacts technical and substantive changes to 2018 Corporation Business Tax reform that could affect returns due November 16, 2020 (Tax Alert 2020-2648)

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Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

— Louisiana governor signs various tax bills in response to the impacts of COVID-19 pandemic and Hurricanes Laura and Delta. During the Second Extraordinary legislative session, the General Assembly approved and sent to Governor John Bel Edwards various tax related measures that address the impacts of the COVID-19 pandemic and hurricanes Laura and Delta on Louisiana taxpayers, workers and businesses.

— Income/Franchise, Sales & Use, Property Tax, Controversy, Payroll & Employment Tax, Miscellaneous Tax, Value Added Tax

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IRS Weekly Wrap-Up

Final Regulations

 TD 9916Additional First Year Depreciation Deduction
 TD 9929Employee Benefits Security Administration
 TD 9930Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions
 TD 9922Guidance Related to the Allocation and Apportionment of Deductions and Foreign Taxes, Foreign Tax Redeterminations, Foreign Tax Credit Disallowance Under Section 965(g), Consolidated Groups, Hybrid Arrangements and Certain Payments Under Section 951A
 TD 9909Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Correcting Amendment

Proposed Regulations

 REG-106808-19Additional First Year Depreciation Deduction
 REG-101657-20Guidance Related to the Foreign Tax Credit; Clarification of Foreign-Derived Intangible Income

Revenue Procedures

 2020-48Rulings and determination letters
 2020-49Administrative, Procedural, and Miscellaneous

Notices

 2020-80Request for Comments Regarding Protection of Annuity and Spousal Rights Under Section 205 of ERISA with Respect to a Terminating § 403(b) Plan Funded Through the Use of Custodial Accounts
 2020-75Forthcoming Regulations Regarding the Deductibility of Payments by Partnerships and S Corporations for Certain State and Local Income Taxes

Because the matters covered herein are complicated, U.S. 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.

 

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.

 

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