November 7, 2021
U.S. Tax This Week for November 5
Ernst & Young's U.S. Tax This Week newsletter for the week ending November 5 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.
Top of the Week
House reconciliation manager's amendment includes tax changes
House Democratic leaders November 3 released a manager's amendment to the Build Back Better Act reconciliation bill (H.R. 5376) that includes modifications from the text released on October 28, including changes to the state and local tax deduction cap, the addition of four weeks of paid leave, rules relating to retirement plans, and drug pricing provisions. A Rules Committee markup to report a rule for debate on the bill is underway. It is possible the revised version of the bill could be voted on in the House this week, though a vote has not been scheduled. House leaders are signaling less of an inclination toward coordination with the Senate, where changes to any House-passed bill still appear likely. EY Tax Alert 2021-2012 has details.
Latest Build Back Better proposal includes 15% corporate minimum tax on book income As part of the budget reconciliation negotiations, Senate Finance Committee Chairman Ron Wyden (D-OR) and Senators Elizabeth Warren (D-MA) and Angus King (I-ME) proposed a 15% corporate alternative minimum tax (CAMT) based on book income for companies that report over $1 billion in profits to shareholders. The CAMT is included as a primary revenue raiser in the latest version of the Build Back Better proposal, which was released October 28, 2021. The proposal would apply to tax years beginning after December 31, 2022. EY Tax Alert 2021-1990 has details.
Insurance Tax Forum: How insurers may be impacted by BEPS 2.0 Pillar Two and how they might respond (November 9)
The Organisation for Economic Co-operation and Development Inclusive Framework is currently finalizing the Base Erosion and Profit Shifting (BEPS) 2.0 Model Rules and detailed implementation plan, with a target release date later this month. The impact of the Model Rules is likely to be more significant for insurers than many other industries because of their unique tax, accounting, and regulatory regimes. During this EY Webcast, Ernst & Young professionals invite you to join this Insurance Tax Forum to explore these rules.
International tax talk quarterly series with the EY Global Tax Desk Network (November 9)
During this EY Webcast, panelists from Europe, Latin America and the Asia-Pacific region, will discuss the following: (i) Recent EU tax legislative changes affecting intragroup transactions and holding, financing and intellectual property arrangements; (ii) Key changes under the proposed Latin-America tax reform in Brazil and Mexico; (iii) Trends, developments and the potential impact of global tax reform in the Asia-Pacific region; and (iv) Foreign tax considerations in preparing for proposed US legislative changes, with a focus on developments that may require action by December 31, 2021.
Tax in supply chain series: India – from resilience to resurgence (November 10)
During this EY Webcast, Ernst & Young professionals will be joined by Deepak Bagla, Managing Director and CEO of Invest India, to share insights on global and domestic factors affecting investments into India.
2021 Forms 1099 and 1042-S: New Forms W-8 and what filers need to know this reporting season (November 17)
During this EY Webcast, Ernst & Young professionals will provide answers to many questions on the new forms and a practical discussion of how to manage filing information returns for 2021.
2021 employment tax year in review (December 7)
In meeting their 2021 year-end employment reporting requirements, employers will need to address the unique challenges created by temporary federal and state COVID-19 provisions while also following other necessary procedures for closing the tax year. During this EY Webcast, Ernst & Young employment tax and benefits professionals will discuss several common areas of year-end employment tax concern.
Recent Tax Alerts
— Nov 03: Tax Court respects non-taxable debt-financed distribution but holds that portion of financing was equity (Tax Alert 2021-2003)
Internal Revenue Service
— Nov 03: IRS issues new FAQs providing instructions for certain carried interest reporting (Tax Alert 2021-2008)
— Nov 04: Thailand publishes mandatory requirements for submission of Thai transfer pricing Country-by-Country reports (Tax Alert 2021-2016)
— Nov 04: EY Canada's Tax Matters @ EY for November 2021 (Tax Alert 2021-2015)
— Nov 04: Cyprus issues Ministerial Decree on DAC6 Guidelines (Tax Alert 2021-2014)
— Nov 03: Colombia issues regulations to identify preferential tax regimes (Tax Alert 2021-2010)
— Nov 03: Mexico and Germany sign new protocol to tax treaty (Tax Alert 2021-2007)
— Nov 03: US and EU agree to end steel and aluminum tariffs and cooperate to address carbon intensity (Tax Alert 2021-2005)
— Nov 02: Peru's President asks Congress for power to enact different tax measures (Tax Alert 2021-2000)
— Nov 02: Argentina announces new policies for inbound travelers (Tax Alert 2021-1999)
— Nov 02: Uruguay announces new policies for inbound travelers (Tax Alert 2021-1995)
— Nov 02: G20 leaders confirm commitment to global tax changes under BEPS 2.0 (Tax Alert 2021-1991)
— Nov 01: Canada's targeted COVID-19 support measures announced (Tax Alert 2021-1987)
— Oct 29: Mexican Congress approves 2022 tax reform (Tax Alert 2021-1982)
— Oct 29: Sweden extends entry ban and adds new categories of travelers to exemption list (Tax Alert 2021-1981)
— Oct 29: Vietnam releases a Circular on digital tax (Tax Alert 2021-1980)
— Nov 05: What to expect in Washington (November 5) (Tax Alert 2021-2025)
— Nov 04: CMS finalizes physician, outpatient/ASC and home health final payment rules (Tax Alert 2021-2013)
— Nov 04: House reconciliation manager's amendment includes tax changes (Tax Alert 2021-2012)
— Nov 03: Democrats release compromise on drug pricing deal aimed for inclusion in Build Back Better Act (Tax Alert 2021-2001)
— Nov 01: Latest Build Back Better proposal includes 15% corporate minimum tax on book income (Tax Alert 2021-1990)
— Nov 01: Health care provisions in the Build Back Better Act Draft Rules Committee print (Tax Alert 2021-1989)
— Nov 04: Council on State Taxation (COST) releases EY report on state and local taxes paid by businesses in fiscal year 2020 (Tax Alert 2021-2019)
— Nov 04: California Franchise Tax Board issues legal ruling on unitary apportionment principles for pass-through entities and their owners (Tax Alert 2021-2017)
— Nov 03: Puerto Rico's Treasury Department announces new monthly return for consolidated sales and use tax and tax on imports effective for the month of October and subsequent periods (Tax Alert 2021-2009)
— Nov 03: Ohio legislature adopts streamlined filing processes for municipal net profits taxes (Tax Alert 2021-2006)
— Nov 02: New York announces increase in Paid Family Leave insurance contribution rate for 2022 (Tax Alert 2021-1998)
— Nov 02: Federal unemployment tax (FUTA) credit reduction outlook for 2021 and beyond; September 2021 jobless rate decreased (Tax Alert 2021-1997)
— Nov 01: Louisiana's voluntary intercompany transfer pricing initiative begins November 1 (Tax Alert 2021-1994)
State and Local Tax Weekly
Highlights of this edition include:
— Proposed federal bills would reinstate, expand and increase superfund excise taxes as soon as January 1, 2022. Taxpayers in multiple sectors may soon be obligated to pay superfund excise taxes on products they manufacture or import.
— Income/Franchise, Sales & Use, Business Incentives, Compliance & Reporting, Payroll & Employment Tax, Miscellaneous Tax, Upcoming Webcasts
IRS Weekly Wrap-Up
| ||2021-57||Funding relief for multiemployer defined benefit pension plans under the American Rescue Plan Act of 2021|
| ||2021-59||Deferred Applicability Dates for Foreign Currency Guidance|
| ||2021-61||2022 Limitations Adjusted as Provided in Section 415(d), etc.|
Internal Revenue Bulletin
| ||2021-44||Internal Revenue Bulletin of November 1, 2021|
| ||2021-45||Internal Revenue Bulletin of November 8, 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.