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December 12, 2021
2021-2221

U.S. Tax This Week for December 10

Ernst & Young's U.S. Tax This Week newsletter for the week ending December 10 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

State ACA furnishing deadlines looming for employers in states that have not followed IRS extension

Despite the IRS's recent extension of the federal deadline for furnishing Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to employees, some states with ACA reporting requirements have not extended their deadlines for furnishing these forms. While New Jersey and the District of Columbia have extended their deadlines, the deadline for furnishing Forms 1095-C remains January 31, 2022, for some states with ACA reporting requirements. EY Tax Alert 2021-2216 has details.

EY resources are now available to assist you with your payroll year-end activities

During our December 8, 2021 webcast, 2021 Employment tax year in review, panelists discussed numerous federal and state employment tax considerations to consider for year-end 2021 and 2022. EY Tax Alert 2021-2210 has details.

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Upcoming Webcasts

Implications of the Superfund chemicals excise tax (December 13)
During this EY Webcast, Ernst & Young professionals will discuss the recently enacted Infrastructure Investment and Jobs Act, specifically the reinstatement and expansion of the Superfund chemicals excise tax.

BEPS 2.0: Focus on Pillar Two (December 14)
This EY Webcast continues the series of EY Global webcasts addressing BEPS 2.0 developments. Please join us for a timely discussion of the Pillar Two model rules scheduled to be released at the end of November. Panelists will discuss the key elements of the Pillar Two model rules, highlighting what is new with this latest release. They also will share perspectives on how the European Union and other jurisdictions plan to incorporate these model rules into domestic law.

Tax aspects of the LIBOR transition: What to consider for year-end (December 16)
During this EY Webcast, Ernst & Young professionals will discuss tax considerations of the London Interbank Offered Rate (LIBOR) transition and what steps multinational companies can take before the year-end to prevent disruption.

Accounting for income taxes: A quarterly perspective (December 16)
During this EY 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..

Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS developments (December 17)
During this EY Webcast, Ernst & Young panelists will provide updates on: (i) the US economy and tax policy; (ii) breaking developments; and (iii) what’s happening at the IRS.

Private Equity and Private Capital - Navigating transformative global and US legislative change (January 18)
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.

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Recent Tax Alerts

Internal Revenue Service

— Dec 09: IRS posts two FAQs addressing 2021 short-tax-year filing requirements for pass-through entities in light of not-yet-final forms (Tax Alert 2021-2212)

— Dec 07: IRS will not acquiesce in Mayo Clinic UBIT case addressing whether an 'educational organization' must primarily provide formal, traditional instruction (Tax Alert 2021-2202)

— Dec 07: IRS addresses low-income housing tax credits and 4% floor (Tax Alert 2021-2201)

— Dec 06: IRS provides guidance for employers on the retroactive termination of the ERC (Tax Alert 2021-2198)

— Dec 03: IRS reinstates temporary reduction in required cash distributions to shareholders of public REITS and RICs (Tax Alert 2021-2193)

International

— Dec 09: Taiwan and UK sign protocol to amend tax treaty (Tax Alert 2021-2214)

— Dec 09: Taiwan's tax treaty with Saudi Arabia enters into force (Tax Alert 2021-2213)

— Dec 08: Canadian employer obligation on deemed supplies made to pension and master pension entities discussed (Tax Alert 2021-2208)

— Dec 08: Supreme Court of Canada dismisses Crown's appeal in The Queen v. Loblaw Financial Holdings Inc. (Tax Alert 2021-2207)

— Dec 07: Mexico City's 2022 economic proposal includes the imposition of new taxes on certain digital services (Tax Alert 2021-2205)

— Dec 07: Portugal modifies transfer pricing regime (Tax Alert 2021-2204)

— Dec 07: Colombia and Uruguay sign double tax treaty (Tax Alert 2021-2203)

— Dec 07: UK's imminent December deadline for VAT refund claims for non-registered and non-established EU and non-EU businesses discussed (Tax Alert 2021-2200)

— Dec 06: 2021 holiday travel guide for the United States (Tax Alert 2021-2197)

— Dec 03: South Korea temporarily suspends quarantine exemptions for certain travelers and announces new restrictions for travelers from nine African countries (Tax Alert 2021-2186)

Legislation

— Dec 08: What to expect in Washington (December 8) (Tax Alert 2021-2209)

— Dec 03: President Biden unveils winter COVID-19 plan to ramp up boosters and vaccinations, expand free at-home testing and more (Tax Alert 2021-2187)

States

— Dec 08: Massachusetts paid family and medical leave contributions will decrease effective January 1, 2022 (Tax Alert 2021-2211)

— Dec 06: Colorado creates new state certificate employees can use for the employer's calculation of state income tax withholding (Tax Alert 2021-2199)

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Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

— North Carolina enacts significant tax law changes affecting businesses and individuals On Nov. 18, 2021, Governor Roy Cooper signed into law the 2021 Appropriations Act (2021—2022 N.C. Sess. Laws, ch. SL 2021-180, 2021 NC Senate Bill 105(the Bill), which affects various North Carolina taxes.

—  Income/Franchise, Sales & Use, Business Incentives, Property Tax, Controversy, Payroll & Employment Tax, Miscellaneous Tax, Global Trade, Value Added Tax

ITS/Washington Dispatch
   Highlights of this edition include:

Legislation

  • House passes Build Back Better Act budget reconciliation bill; action moves to Senate
  • President Biden signs infrastructure legislation including new cryptocurrency reporting

IRS news

  • Final FTC regs expected by year-end, PTEP regs in 2022
  • New IRS tool supports withholding agents’ compliance with Form 1042-S
  • OECD remains committed to BEPS Pillars in effect by end of 2023

Digital Taxation

  • US, Turkey announce joint statement on unilateral digital tax compromise
  • India, US agree on transitional approach for 2% Equalization Levy prior to implementation of Pillar One rule

OECD news

  • OECD releases 2020 MAP statistics and awards

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IRS Weekly Wrap-Up

Proposed Regulations

 REG–109128–21Information Reporting of Health Insurance Coverage and Other Issues

Notices

 2021-65Termination of the Employee Retention Credit under Section 3134 of the Code in the Fourth Calendar Quarter of 2021 for Certain Employers

Internal Revenue Bulletin

 2021-50Internal Revenue Bulletin of December 13, 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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