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Ernst & Young's U.S. Tax This Week newsletter for the week ending June 4 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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EY Guides and Publications

Balancing certainty and flexibility in today's tax environment
This recent EY article looks at key considerations organizations can evaluate in tax compliance planning to find the balance between certainty and flexibility.

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Upcoming Webcasts

Tax in a dynamic global sustainability landscape: The challenges around the ‘E’ in ESG (June 8)
During this Thought Center Webcast, Ernst & Young professionals will focus on tax considerations and opportunities in the global effort to make the environment a top policy priority. The tax department is a critical voice in the environmental, social, governance (ESG) conversation and should work hand-in-hand with sustainability, operations and the C-suite as businesses both proactively develop strategies to align with the “E” in the ESG framework and respond to legislative and policy developments across the globe.

Telework and other employer challenges in 2021 and beyond (June 17)
During this Thought Center Webcast, Ernst & Young professionals will bring together their insights and experience to discuss how COVID-19 impacts continue to challenge employers, particularly around the demand for telework arrangements after state and local mandatory work-from-home orders have expired.

Accounting for income taxes: A quarterly perspective (June 22)
During this Thought Center Webcast, Ernst & Young professionals will discuss ongoing issues and regulatory trends in the tax accounting arena. Topics will include recent tax legislation with tax accounting implications and a review of current income tax accounting concepts.

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 21: Unanimous Supreme Court holds that Anti-Injunction Act does not bar lawsuit challenging IRS reporting requirements (Tax Alert 2021-1043)

— May 21: Tax Court concludes former State senator convicted of fraud also deemed a 'disqualified person' for intermediate sanctions purposes (Tax Alert 2021-1040)

Internal Revenue Service

— May 24: IRS releases guidance on COBRA premium assistance and employer refundable tax credits (Tax Alert 2021-1052)

— May 21: IRS modifies guidance on accounting method changes for certain foreign corporations (Tax Alert 2021-1041)

International

— Jun 03: Changes to immigration rules designed to restrict entry of foreigners into Vietnam and manage spread of COVID-19 discussed (Tax Alert 2021-1109)

— Jun 03: EY Canada's Tax Matters @ EY for June 2021 (Tax Alert 2021-1104)

— Jun 02: Italy enacts exceptional 15% Notional Interest Deduction or equivalent tax credit for 2021 (Tax Alert 2021-1096)

— Jun 02: EU co-legislators reach agreement on public CbCR (Tax Alert 2021-1097)

— Jun 01: Colombia reopens borders with several neighboring countries; ends ban on flights from UK; announces new restrictions on flights from India (Tax Alert 2021-1093)

— Jun 01: Newfoundland and Labrador budget 2021-22 discussed (Tax Alert 2021-1087)

— May 26: Italy extends accounting step-up election to financial year 2021 (Tax Alert 2021-1080)

— May 26: OECD: Conference of the Parties of the MLI approve opinion for MLI interpretation and implementation (Tax Alert 2021-1079)

— May 26: Portugal clarifies VAT rules related to nonresident taxable persons (Tax Alert 2021-1078)

— May 26: Poland proposes optional e-invoicing from 1 October 2021 (Tax Alert 2021-1077)

— May 26: Italy postpones plastic packaging tax to 2022 (Tax Alert 2021-1076)

— May 26: UK's 2021 to 2025 immigration priorities announced (Tax Alert 2021-1075)

— May 26: Turkey issues guidance on financing expense deduction restriction, taxation of share buybacks and reduced income tax rate for publicly held companies (Tax Alert 2021-1069)

— May 25: Uruguayan Executive Power issues decree regulating new 10-year option under 'tax holiday' regime (Tax Alert 2021-1067)

— May 25: Argentina corporate legal authorities modify regime for foreign companies (Tax Alert 2021-1066)

— May 25: Peruvian tax authority establishes guidelines for application of new thin capitalization rules (Tax Alert 2021-1064)

— May 26: Kenyan Government presents Finance Bill, 2021 to Parliament (Tax Alert 2021-1062)

— May 26: German Parliament advances several tax proposals (Tax Alert 2021-1060)

— May 26: Greece implements income tax reductions and other tax amendments (Tax Alert 2021-1056)

— May 24: EU General Court annuls Commission's decision on Luxembourg transfer pricing state aid case (Tax Alert 2021-1055)

— May 24: Uruguay extends reduced 13% value-added tax rate to operations in the tourism sector (Tax Alert 2021-1051)

— May 24: Argentine Chamber of Deputies approves bill that would raise corporate income tax rates (Tax Alert 2021-1050)

— May 25: Sweden's open disclosures may be used to manage risks of tax penalties due to COVID-19 related transfer pricing adjustments (Tax Alert 2021-1047)

— May 21: Romania's draft law to create long-term "Digital Nomad" visa discussed (Tax Alert 2021-1039)

— May 21: Costa Rica's proposed bill creates new immigration category for remote workers and service providers (Tax Alert 2021-1038)

— May 21: Costa Rica's General Directorate of Customs authorizes a new category of goods that may be imported under the temporary import regime (Tax Alert 2021-1035)

Legislation

— Jun 03: Biden's FY2022 budget proposes making new markets tax credit permanent (Tax Alert 2021-1108)

— Jun 01: Travel of US Citizens with expired passports discussed (Tax Alert 2021-1088)

— Jun 01: What to expect in Washington (June 1) (Tax Alert 2021-1085)

— Jun 01: Wyden Clean Energy bill gets tie vote at Senate Finance committee (Tax Alert 2021-1084)

— Jun 01: President Biden releases FY22 budget, increasing health spending by $25 billion (Tax Alert 2021-1083)

— May 25: Senate HELP Committee advances six bipartisan health care bills on maternal health and workplace protections, provider wellbeing, research funding, and physical fitness (Tax Alert 2021-1065)

— May 25: American Investment Council releases EY report on the economic footprint of the US private equity sector (Tax Alert 2021-1061)

— May 25: Senate Finance holds hearing on Batchelder nomination (Tax Alert 2021-1058)

— May 24: Senate Finance to mark up clean energy bill (Tax Alert 2021-1054)

— May 24: Tax M&A Update for April 2021 (Tax Alert 2021-1053)

— May 21: Biden Administration proposes increased information reporting (Tax Alert 2021-1044)

— May 21: Senate HELP Subcommittee hearing on the health care workforce shortage (Tax Alert 2021-1036)

States

— Jun 03: Kansas law temporarily modifies state income tax withholding rules for teleworkers due to the COVID-19 emergency (Tax Alert 2021-1103)

— Jun 02: Kentucky eliminates composite returns for nonresident individuals and extends deadline to apply for major recycling credit (Tax Alert 2021-1098)

— Jun 01: Iowa legislature approves significant income tax changes, including coupling to federal bonus depreciation, with continued decoupling from limitations on business interest expense (Tax Alert 2021-1094)

— Jun 02: Rhode Island extends COVID-19 income tax withholding guidance for teleworkers (Tax Alert 2021-1095)

— Jun 01: Colorado issues revised 2021 SUI tax rate notices; 2021 SUI tax rates increased; regular COVID-19 UI benefits not charged to employer accounts (Tax Alert 2021-1090)

— Jun 01: Ohio Supreme Court rules again that income from stock options earned in Cleveland during employee's residency are taxable even though employee moved to Florida (Tax Alert 2021-1091)

— May 26: Missouri legislature approves marketplace facilitator and remote seller nexus rules (Tax Alert 2021-1081)

— May 25: Nebraska legislature passes corporate income tax rate reductions but does not address deductibility of subpart F income (Tax Alert 2021-1063)

— May 25: Michigan will resume charging employer UI accounts with COVID-19 UI benefits; 2021 SUI tax rate computation remains unchanged from 2020; 2021 taxable wage base increases (Tax Alert 2021-1059)

— May 25: San Francisco pushes back business registration due date (Tax Alert 2021-1057)

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IRS Weekly Wrap-Up

Revenue Rulings

Internal Revenue Bulletin

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.