December 19, 2021
U.S. Tax This Week for December 17
Ernst & Young's U.S. Tax This Week newsletter for the week ending December 17 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
Senate Finance Committee proposes significant technical changes to international tax provisions in budget reconciliation bill
On Saturday, December 11, 2021, Senate Finance Committee Chair Ron Wyden, D-Ore., released updated text of the Finance Committee's title of the Build Back Better Act (SFC Proposal). The updated text largely retains the international tax proposals from the version of the Build Back Better Act passed by the House (House Bill) (see Tax Alerts 2021-2040 and 2021-9027) but includes some significant technical changes to these rules. EY Tax Alert 2021-2235 has details.
FinCEN again extends certain signature authority reporting (FBAR, Form 114) over foreign financial accounts In Notice 2021-1 (the Notice, released December 13, 2021), the Financial Crimes Enforcement Network (FinCEN) further extended the filing deadline for certain individuals who previously qualified for an extension of time to file the Report of Foreign Bank and Financial Accounts (FBAR) regarding signature authority under Notice 2020-1 and previous guidance. The Notice pertains only to individuals who were initially granted extensions of time to report signature authority under FinCEN Notices 2011-1 and 2011-2 (most recently extended by FinCEN Notice 2020-1). Under the Notice, individuals have until April 15, 2023, to file deferred FBARs, subject to any potential further extension. Any persons not covered by the Notice for 2021 will have until April 15, 2022 — automatically extended six months to October 17, 2022 — to file their FBARs for the 2021 calendar year. EY Tax Alert 2021-2251 has details.
Understanding the Build Back Better Act (December 20)
During this EY Webcast, Ernst & Young professionals will discuss the SFC proposal with particular focus on the international tax provisions as compared to the House bill.
BEPS 2.0: Focus on Pillar Two (January 12)
During this EY Webcast, Ernst & Young professionals 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.
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.
Recent Tax Alerts
Internal Revenue Service
— Dec 16: IRS revokes hospital's tax-exempt status following sale of all assets (Tax Alert 2021-2261)
— Dec 16: IRS releases final Instructions for 2021 ACA reporting forms with new filing deadline, ICHRA provisions (Tax Alert 2021-2259)
— Dec 15: FinCEN again extends certain signature authority reporting (FBAR, Form 114) over foreign financial accounts (Tax Alert 2021-2251)
— Dec 14: Electronic version of Form 1024 coming in early 2022, IRS official reports (Tax Alert 2021-2243)
— Dec 10: IRS clarifies how employers who anticipated fourth-quarter employee retention credits can avoid penalties (Tax Alert 2021-2226)
— Dec 15: Costa Rica enacted a law to promote investment in and development of international film productions in Costa Rica (Tax Alert 2021-2257)
— Dec 15: UK issues consultation on regulations to implement OECD mandatory disclosure rules (Tax Alert 2021-2254)
— Dec 15: Trade Watch | Issue 3 2021 (Tax Alert 2021-2252)
— Dec 15: Costa Rica's Tax Authority published the list of industries and economic activities that it will consider as a criterion for selecting taxpayers for tax audits (Tax Alert 2021-2249)
— Dec 15: Canada delivers its Economic and Fiscal Update 2021 (Tax Alert 2021-2247)
— Dec 15: Armenian National Assembly ratifies law introducing concept of electronic services in the Tax Code (Tax Alert 2021-2246)
— Dec 14: France implements automatic reverse charge for import VAT as of 1 January 2022 (Tax Alert 2021-2241)
— Dec 13: Cyprus Finance Minister announces Government’s plan for tax reform in 2022 (Tax Alert 2021-2238)
— Dec 10: Brazil introduces new quarantine requirement for unvaccinated travelers, lifts prohibition on entry by land for fully vaccinated travelers (Tax Alert 2021-2231)
— Dec 10: Poland publishes statistics on MDR information submitted between January 2019 and September 2021 (Tax Alert 2021-2230)
— Dec 10: Belgium's double tax treaty with Netherlands now subject to MLI (Tax Alert 2021-2229)
— Dec 10: Recent Israeli developments regarding 'Trapped Earnings,' changes to Preferred Enterprise regime require year end analysis (Tax Alert 2021-2225)
— Dec 10: Philippines introduces new Philippines Economic Zone Authority (PEZA) visa (Tax Alert 2021-2220)
— Dec 10: Singapore announces changes to COVID-19 tax and Central Provident Fund support measures for individuals and employers for Year of Assessment 2022 (Tax Alert 2021-2219)
— Dec 10: PE Watch | Latest developments and trends, December 2021 (Tax Alert 2021-2215)
— Dec 15: Build Back Better Act reconciliation bill would enhance existing workforce-related credits and create new ones (Tax Alert 2021-2256)
— Dec 15: What to expect in Washington (December 15) (Tax Alert 2021-2248)
— Dec 13: Senate Finance Committee releases its version of tax provisions in BBBA reconciliation bill (Tax Alert 2021-2236)
— Dec 13: FIRST IMPRESSIONS | Senate Finance Committee proposes significant technical changes to international tax provisions in budget reconciliation bill (Tax Alert 2021-2235)
— Dec 10: House Financial Services Committee questions CEOs on cryptocurrency risks and benefits (Tax Alert 2021-2228)
— Dec 15: A preliminary look at the 2022 SUI taxable wage bases (Tax Alert 2021-2255)
— Dec 15: Maryland Comptroller adopts final regulations for digital advertising tax (Tax Alert 2021-2253)
— Dec 14: Colorado 2022 SUI rate notices delayed; SUI rate schedule moves to highest range; SUI taxable wage base to increase (Tax Alert 2021-2242)
— Dec 10: Ohio appeals court upholds dismissal of challenge to city's income tax withholding rules of remote workers (Tax Alert 2021-2227)
State and Local Tax Weekly
Highlights of this edition include:
— Delaware Supreme Court invalidates revenue division's policy limiting state separate company net operating loss (NOL) to a corporation's federal consolidated group's NOL. In Verisign Inc., the Delaware Supreme Court (DE S.Ct.) agreed with (but for different reasons) the superior court's finding that the policy of the Delaware Division of Revenue (DE DOR) which limits the Delaware separate company NOL a corporation may claim to the consolidated NOL deduction of the federal consolidated group of which it is a member is invalid.
— Income/Franchise, Sales & Use, Business Incentives, Compliance & Reporting, Payroll & Employment Tax, Value Added Tax, Upcoming Webcasts
IRS Weekly Wrap-Up
| ||2022-09||Changes in accounting periods and methods of accounting|
| ||2022-01||Section 1274.—Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property|
| ||2021-66||Superfund; Initial List of Taxable Substances; Registration; Procedural Rules; Request for Comments; Suspension of Notice 89-61|
| ||2022-02||Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates|
| ||2022-03||2022 Standard Mileage Rates|
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.