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October 10, 2021
2021-1825

U.S. Tax This Week for October 8

Ernst & Young's U.S. Tax This Week newsletter for the week ending October 8 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

Tax proposals of bill approved by the House Ways and Means Committee would impact many higher-income families, individuals and privately held corporate groups

Recently proposed tax provisions in the Build Back Better Act, which were approved by the House Ways & Means Committee (the HW&M Bill), would increase the overall US tax burden on privately held international businesses and investments, whether those are in corporate or pass-through form, as well as the individuals and families owning them. EY Tax Alert 2021-1824 has details.

OECD publishes two opinions of the Conference of the Parties of the MLI regarding MAP implementation and entry into effect of arbitration rules On 30 September 2021, the Organisation for Economic Co-operation and Development (OECD) published two opinions of the Conference of the Parties of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The opinions of the Conference of the Parties seek to address questions arising as to the interpretation or implementation of the MLI to ensure its proper interpretation and application. EY Tax Alert 2021-1817 has details.

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Upcoming Webcasts

BorderCrossings: Trends driving new supply chain structures and multi-hub operating models (October 12)
During this Thought Center Webcast, Ernst & Young professionals will discuss the non-tax and tax considerations of more flexible, distributed hubs owing to several factors like the “war for talent,” the work-from-anywhere model and difficulty securing visa permits due to the ongoing COVID-19 crisis.

PE and Private Company quarterly tax webcast (October 21)
During this EY Webcast, Ernst & Young professionals will discuss recent global private equity (PE) industry trends and the outlook for US and international legislative and regulatory changes relevant to PE and alternative funds, transactions and portfolio companies.

Examining the MTC’s revised statement on P.L. 86-272: Updates, impact and considerations (October 21)
During this Thought Center Webcast, Ernst & Young professionals will discuss how multistate taxpayers may be affected by the Multistate Tax Commission’s (MTC) recently approved fourth revision to its Statement of Information concerning practices of the MTC and supporting states under P.L. 86-272.

BEPS 2.0: Beyond 2021 (October 28)
During this EY Webcast, Ernst & Young professionals discuss BEPS 2.0 and taxation of the digitalized economy updates after the October OECD/G20 Inclusive Framework meeting and the G20 Finance Ministers and Central Bank Governors meeting.

The indirect tax technology journey: Now. Next. Beyond (November 3)
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

— Oct 05: Tax Court allows husband to claim alimony deduction for paying then-wife's health insurance premiums with pre-tax payroll reductions (Tax Alert 2021-1800)

Internal Revenue Service

— Oct 07: IRS TE/GE division releases FY 2022 Program Letter listing priorities (Tax Alert 2021-1823)

— Oct 01: IRS reminds FBAR filers about October 15, 2021 extension deadline (Tax Alert 2021-1789)

International

— Oct 07: Brazil lifts prohibition on air travel from India, South Africa and the UK (Tax Alert 2021-1822)

— Oct 07: EY Canada's Tax Matters @ EY for October 2021 (Tax Alert 2021-1819)

— Oct 07: Hong Kong may implement substance requirements related to offshore claims (Tax Alert 2021-1818)

— Oct 07: OECD publishes two opinions of the Conference of the Parties of the MLI regarding MAP implementation and entry into effect of arbitration rules (Tax Alert 2021-1817)

— Oct 06: EU Member States adopt revised list of non-cooperative jurisdictions for tax purposes (Tax Alert 2021-1812)

— Oct 05: FinCEN provides FBAR relief to victims of recent natural disasters giving them until December 31, 2021 to file (Tax Alert 2021-1811)

— Oct 05: Salvadoran Minister of Finance filed draft bill to establish tax amnesty program (Tax Alert 2021-1807)

— Oct 05: Brazil issues new, temporary prohibition on travel from India, South Africa and the UK (Tax Alert 2021-1806)

— Oct 05: Argentina announces new entry rules for fully vaccinated citizens and residents of Bolivia, Brazil, Chile, Paraguay and Uruguay (Tax Alert 2021-1804)

— Oct 05: Spain deposits its instrument of ratification of the MLI (Tax Alert 2021-1802)

— Oct 05: UK updates guidance on invoicing for upcoming Plastic Packaging Tax (Tax Alert 2021-1801)

— Oct 04: The Netherlands announces changes to the taxable moment of employee stock options (Tax Alert 2021-1798)

— Oct 05: Turkey proposes new tax bill (Tax Alert 2021-1797)

— Oct 05: Poland plans to limit tax deductibility of payments considered hidden dividends (Tax Alert 2021-1796)

— Oct 01: Argentine Government plans to eliminate duties on exports of services (Tax Alert 2021-1786)

— Oct 01: Spanish National High Court issues favorable decision on dividend withholding tax reclaims by non-Spanish hedge funds (Tax Alert 2021-1781)

Legislation

— Oct 07: Tax proposals of bill approved by the House Ways and Means Committee would impact many higher-income families, individuals and privately held corporate groups (Tax Alert 2021-1824)

— Oct 06: US provides update on trade actions (Tax Alert 2021-1815)

— Oct 06: What to expect in Washington (October 6) (Tax Alert 2021-1813)

— Oct 01: Tri-Agencies issue Part II of surprise billing requirements, outlining independent dispute resolution process (Tax Alert 2021-1787)

States

— Oct 07: Oregon law reduces impact of COVID-19 benefits on future employer SUI tax rates; other programs help employers adversely impacted by COVID-19 (Tax Alert 2021-1821)

— Oct 07: Indiana Department of Revenue announced county income tax rate changes, effective October 1, 2021 (Tax Alert 2021-1816)

— Oct 06: Sales and Use Tax Quarterly Update for fourth quarter of 2021 (Tax Alert 2021-1814)

— Oct 05: New Jersey extends combined reporting initiative for Corporate Business Tax through January 3, 2022 (Tax Alert 2021-1810)

— Oct 05: New York City law requires that private-sector employers make retirement savings plans available to employees (Tax Alert 2021-1805)

— Oct 05: Second Circuit affirms dismissal of challenge to limitation on federal SALT deduction brought by Connecticut, Maryland, New Jersey and New York (Tax Alert 2021-1803)

— Oct 04: Maryland legislation requires the governor to bolster the UI trust fund balance to lower the SUI tax rate schedule for 2022 and 2023; federal UI loan balance repaid avoiding FUTA credit reduction in 2022 (Tax Alert 2021-1799)

— Oct 01: State corporate income and franchise tax developments in the third quarter of 2021 (Tax Alert 2021-1790)

— Oct 01: Seattle Washington employers must allow employees to make pretax contributions for transit or vanpool expenses (Tax Alert 2021-1788)

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Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

— IRS and many states announce tax filing and payment relief for those affected by Hurricane Ida. The IRS announced tax relief for those affected by Hurricane Ida, including taxpayers in Louisiana, Mississippi, New Jersey, New York and Pennsylvania.

— Income/Franchise, Sales & Use, Business Incentives, Controversy, Payroll & Employment Tax, Miscellaneous Tax, Global Trade, Upcoming Webcasts

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IRS Weekly Wrap-Up

Final Regulations

 TD 9955Requirements Related to Surprise Billing

Proposed Regulations

 REG-107707-21Requirements Related to Surprise Billing

Notices

 2021-55Extension of Replacement Period for Livestock Sold on Account of Drought
 2021-58Extension of COBRA election and premium payment deadlines under section 7508A(b)

Internal Revenue Bulletin

 2021-41Internal Revenue Bulletin of October 12, 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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