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May 23, 2021
2021-1029

U.S. Tax This Week for May 21

Ernst & Young's U.S. Tax This Week newsletter for the week ending May 21 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

Senate Finance holds infrastructure hearing

The May 18 Senate Finance Committee hearing on "Funding and Financing Options to Bolster American Infrastructure" exposed party differences on how infrastructure investment should be paid for, with Democrats pushing for tax increases on corporations to pay their "fair share" for use of the nation's infrastructure, and Republicans favoring user fees, rolling back the tax incentives for EVs, and assessing a fee on EVs. Senator Sherrod Brown (D-OH) suggested, as President Biden and Speaker Pelosi have, that the parties could come together on the tax gap as a pay-for. There was significant discussion of bond issues, and Chairman Ron Wyden (D-OR) said he and Ranking Member Mike Crapo (R-ID) both support a revival of Build America Bonds, or governmental bonds eligible for certain tax advantages. EY Tax Alert 2021-1016 has details.

Ways & Means holds hearing on trade agenda During the May 13 House Ways & Means Committee hearing on the Biden administration's trade agenda with U.S. Trade Representative Katherine Tai, members asked about the Administration's support for waiving intellectual property protections for COVID-19 vaccines, enforcing labor and environmental standards in trade agreements, renewing Trade Promotion Authority (TPA), and prospects for trade agreements with the UK and EU, and in Asia. Members of both parties expressed confidence in USTR Tai, a former chief trade counsel for the Committee, and congratulated her for holding the position. EY Tax Alert 2021-0981 has details.

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Upcoming Webcasts

BorderCrossing... With EY transfer pricing and tax professionals (May 26)
During this Thought Center Webcast, EY transfer pricing and tax professionals will help you stay informed and able to adopt a more proactive stance in developing and defending your transfer pricing policies and practices.

Domestic tax quarterly webcast series: a focus on state tax matters (June 3)
During this Thought Center Webcast, Ernst & Young professionals will discuss important state tax policy developments and federal tax developments that could affect state and local taxes.

Tax in the time of COVID-19 : Update on legislative, economic, regulatory and IRS developments (June 4)
During this Thought Center Webcast, Ernst & Young professionals will provide updates on: (i) The US economy and tax policy; (ii) Breaking developments; and (iii) What’s happening at the IRS.

The indirect tax technology journey: Now. Next. Beyond. (June 23)
During this Thought Center Webcast, Ernst & Young professionals will share insights into how market-leading organizations are using technology to adapt to new legislation and market trends, and to effectively transform tax operations.

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Recent Tax Alerts

Courts

— May 20: Eighth Circuit reverses and remands district court's summary judgment grant for Mayo Clinic in UBIT refund case (Tax Alert 2021-1023)

— May 17: Supreme Court rules that Anti-Injunction Act does not bar lawsuit challenging reporting obligations (Tax Alert 2021-1002)

— May 14: Pharmaceutical company may deduct legal fees incurred in defending against patent infringement lawsuits (Tax Alert 2021-0991)

— May 14: Eighth Circuit reverses and remands district court’s summary judgment grant for Mayo Clinic in UBIT refund case (Tax Alert 2021-0986)

Internal Revenue Service

— May 18: IRS issues guidance on premium assistance and a tax credit for continuation health coverage (Tax Alert 2021-1012)

— May 17: IRS says qualified opportunity zones boundaries not changed by census (Tax Alert 2021-1001)

— May 14: IRS extends tax deadlines to August 2 for taxpayers in counties affected by Tennessee spring storms (Tax Alert 2021-0994)

International

— May 19: Argentina modifies regulations for the promotional regime for modern biotechnology (Tax Alert 2021-1018)

— May 19: The Latest on BEPS and Beyond | May 2021 edition (Tax Alert 2021-1014)

— May 19: European Commission publishes Communication on Business Taxation for the 21st Century (Tax Alert 2021-1013)

— May 18: Czech Republic moves forward with Digital Services Tax (Tax Alert 2021-1009)

— May 18: UK issues policy paper on EU e-commerce VAT changes and the impact in Northern Ireland (Tax Alert 2021-1006)

— May 17: Brazilian Superior Court rules municipal service tax applies to income from fund management services provided in Brazil (Tax Alert 2021-1004)

— May 17: Yukon revised budget 2021-22 discussed (Tax Alert 2021-1003)

— May 14: Poland's excise duty declarations must be submitted electronically from 1 July 2021 (Tax Alert 2021-0990)

— May 14: Philippines streamlines process for claiming tax treaty benefits (Tax Alert 2021-0989)

— May 14: Nigeria VAT registration required for foreign suppliers of taxable goods and services (Tax Alert 2021-0988)

— May 14: Danish High Court issues rulings on beneficial ownership (Tax Alert 2021-0987)

Legislation

— May 20: Ways & Means holds infrastructure hearing (Tax Alert 2021-1022)

— May 20: Senate Finance Committee hearing on COVID-19 health care flexibilities (Tax Alert 2021-1021)

— May 19: Senate Finance holds infrastructure hearing (Tax Alert 2021-1016)

— May 19: What to expect in Washington (May 19) (Tax Alert 2021-1015)

— May 17: Senate HELP Committee holds retirement hearing (Tax Alert 2021-0999)

— May 14: Energy and Commerce Health Subcommittee hearing on FY 2022 health and human services budget (Tax Alert 2021-0993)

— May 14: Biden's first 100 days | 8 key public policy issues and what's ahead (Tax Alert 2021-0984)

— May 14: Ways & Means holds hearing on trade agenda (Tax Alert 2021-0981)

States

— May 20: Illinois and Chicago update sick leave requirements to include time off for COVID-19 vaccines (Tax Alert 2021-1027)

— May 19: California law updates its COVID-19 supplemental paid sick leave requirements for 2021 to include time off for vaccines (Tax Alert 2021-1017)

— May 18: Ohio General Assembly considering clarifications to Ohio municipal withholding provisions enacted in response to COVID-19 (Tax Alert 2021-1011)

— May 18: Delaware reissues 2021 SUI tax rate notices; 2021 SUI tax rates retroactively lowered (Tax Alert 2021-1010)

— May 17: California elective pass-through entity tax bill continues through state Senate after significant technical corrections and amendments (Tax Alert 2021-1007)

— May 17: Florida law lowers 2021 SUI tax rates; 2021 SUI tax notices to be reissued (Tax Alert 2021-1005)

— May 17: Washington State to require captive insurers to register and pay insurance premium tax (Tax Alert 2021-1000)

— May 14: Puerto Rico issues guidance for complying with the requirement to submit a transfer pricing study (Tax Alert 2021-0985)

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IRS Weekly Wrap-Up

Revenue Procedures

 2021-24Individuals required to make returns of income

Revenue Rulings

 2021-09Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

Notices

 2021-31Premium Assistance for COBRA Benefits
 2021-33Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

Internal Revenue Bulletin

 2021-21Internal Revenue Bulletin of May 24, 2021

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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