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August 15, 2021
2021-1506

U.S. Tax This Week for August 13

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

Senate passes budget resolution, clearing way for $3.5T reconciliation bill of Democratic priorities

Just before 4 a.m. the morning of Wednesday, August 11, after a marathon 15-hour voting session, the Senate approved the FY2022 budget resolution with reconciliation instructions (S. Con. Res. 14) by a vote of 50-49, clearing the way for the drafting of a $3.5 trillion package of Democratic priorities that can pass with a simple majority vote in the Senate. EY Tax Alert 2021-9014 has details.

IRS releases method change procedures implementing final regulations on income recognition

August 12, 2021, Treasury and IRS released Revenue Procedure 2021-34, which provides procedural guidance on final regulations under IRC Section 451 (the final regulations, which were published in the January 6, 2021 Internal Revenue Bulletin). The revenue procedure is generally effective for Forms 3115 filed on or after August 12, 2021. EY Tax Alert 2021-9015 has details.

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Recent Tax Alerts

Internal Revenue Service

— Aug 09: IRS provides guidance on employee retention credits for the second half of 2021 (Tax Alert 2021-1489)

International

— Aug 11: OECD releases corporate tax statistics publication (third edition), including anonymized and aggregated country-by-country report statistics (Tax Alert 2021-1502)

— Aug 11: India proposes to remove retrospective applicability of indirect transfer tax regime (Tax Alert 2021-1499)

— Aug 11: OECD releases 2021 update on peer review of preferential tax regimes (Tax Alert 2021-1498)

— Aug 11: Korea announces 2021 tax reform proposals (Tax Alert 2021-1497)

— Aug 10: East African Community implements tariff changes (Tax Alert 2021-1491)

— Aug 09: Thailand’s application of VAT on digital services (e-services) provided by foreign operators will apply as of 1 September 2021 (Tax Alert 2021-1481)

— Aug 06: Australia's Refugee Talent pilot and international border update provided (Tax Alert 2021-1470)

Legislation

— Aug 12: Wyden bill would change tax treatment of financial derivative transactions (Tax Alert 2021-1504)

— Aug 11: What to expect in Washington (August 11) (Tax Alert 2021-1501)

— Aug 11: United States: Adjustment of Status Application is updated to include SSN request (Tax Alert 2021-1500)

— Aug 10: Senate approves infrastructure bill (Tax Alert 2021-1494)

— Aug 10: Senate to pass infrastructure bill, FY22 budget resolution released (Tax Alert 2021-1493)

— Aug 09: Senate budget resolution clears way for $3.5t reconciliation bill (Tax Alert 2021-1488)

States

— Aug 12: Pennsylvania ends COVID-19 temporary business tax nexus and income tax withholding guidance for teleworkers (Tax Alert 2021-1505)

— Aug 11: Ohio Department of Taxation releases revised income tax withholding tables for use with wages paid on and after September 1, 2021 (Tax Alert 2021-1503)

— Aug 10: New Jersey ends teleworker business tax nexus and income tax withholding relief for COVID-19 effective October 1, 2021 (Tax Alert 2021-1495)

— Aug 06: Nevada Commerce Tax due August 16, 2021 (Tax Alert 2021-1480)

— Aug 06: Vermont announces an increase in state unemployment insurance tax rates effective July 1, 2021 (Tax Alert 2021-1479)

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Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

  • Delaware enacts significant changes to its unclaimed property law; immediate action may be required for holders currently under audit. On June 30, 2021, Delaware Governor John Carney signed 2021 Del. Senate Bill 104 (Del. Laws vol. 83, ch. 59) (SB 104), which modifies Delaware's unclaimed property laws.
  • Income/Franchise, Sales & Use, Business Incentives, Property Tax, Compliance & Reporting, Controversy, Payroll & Employment Tax

ITS/Washington Dispatch
   Highlights of this edition include:

Legislation

  • White House, Senate negotiators reach agreement on $1.2 trillion infrastructure package

Digital news

  • OECD announces conceptual agreement in BEPS 2.0 project; endorsed by G20 Finance Ministers and Central Bank Governors

IRS news

  • Biden Administration expects increased IRS enforcement to generate more revenue
  • US, UK competent authorities sign agreements re treaty LOB provision
  • IRS memo addresses CSA and inclusion of stock-based compensation costs
  • Treasury official provides international tax regulatory update

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IRS Weekly Wrap-Up

Revenue Procedures

 2021-33Examination of returns and claims for refund, credit or abatement; determination of correct tax liability
 2021-34Changes in accounting periods and in methods of accounting
 2021-35Rules and regulations

Internal Revenue Bulletin

 2021-33Internal Revenue Bulletin of August 16, 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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