March 6, 2022
U.S. Tax This Week for March 4
Ernst & Young's U.S. Tax This Week newsletter for the week ending March 4 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
Updates on BEPS 2.0 project from OECD Tax Talks and G20 Finance Ministers meeting
On 21 February 2022, the Organisation for Economic Co-operation and Development (OECD) held a Tax Talks webcast during which members of the OECD Secretariat provided an overview of the latest international tax developments, including updates on Pillars One and Two of the so-called Base Erosion and Profit Shifting (BEPS) 2.0 project. The BEPS 2.0 project was also addressed in the OECD's Secretary-General Report to G20 Finance Ministers and in the communiqué from the 17-18 February 2022 G20 Finance Ministers and Central Bank Governors meeting. EY Tax Alert 2022-0341 has details.
Biden focuses on situation in Ukraine, lowering prices, improving competition, easing supply chains in State of the Union address
In his first State of the Union address, President Biden on Tuesday, March 1, first focused on the situation in Ukraine, describing the administration's efforts to support Ukraine while targeting Russia and its banks and oligarchs with sanctions. The speech then turned to highlighting projects from the bipartisan infrastructure legislation (the Infrastructure Investment and Jobs Act) signed into law last fall; fighting the wave of higher prices; tax fairness; and competing with China. Biden gave a status report on the coronavirus pandemic, saying guidance on mask-wearing would be relaxed, and offered a number of health proposals, such as capping the cost of insulin at $35 a month and giving Medicare the authority to negotiate lower prices for prescription drugs. EY Tax Alert 2022-0342 has details.
Accounting for income taxes: A quarterly perspective (March 22)
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.
Transparency in the sharing economy: What to know about DAC7 and beyond (March 24)
During this EY Webcast, Ernst & Young professionals will discuss the global adoption of tax reporting rules for digital platforms, including OECD’s Model Rules, EU’s tax automatic exchange of information directive known as DAC7 and the UK’s hybrid implementation.
Recent Tax Alerts
— Mar 03: Sixth Circuit holds IRS notice on listed transactions involving life insurance policies is not enforceable because APA notice-and-comment procedures weren't satisfied (Tax Alert 2022-0360)
— Mar 02: Tax Court rejects common positions on assumed liabilities for deferred compensation in memorandum opinion (Tax Alert 2022-0350)
— Mar 01: Tax Court determines tax consequences of decedent's split-dollar life insurance arrangements with premiums paid by her revocable trust (Tax Alert 2022-0335)
Internal Revenue Service
— Mar 03: IRS withdraws LB&I directives on transaction costs (Tax Alert 2022-0359)
— Feb 25: IRS rules that solar energy facility is not public utility property (Tax Alert 2022-0330)
— Mar 03: EY Canada's Tax Matters @ EY for March 2022 (Tax Alert 2022-0356)
— Mar 03: Peru's President amends Tax Code and registration process for the Tax ID Registry (Tax Alert 2022-0355)
— Mar 03: European Commission proposes new Directive on corporate sustainability due diligence aimed at establishing legal accountability for global value chains (Tax Alert 2022-0353)
— Mar 02: Czech Republic introduces special immigration provisions for Ukrainian nationals (Tax Alert 2022-0352)
— Mar 02: Luxembourg Tax Authority clarifies application of real estate levy including reporting requirement for all Luxembourg corporate investment vehicles (Tax Alert 2022-0348)
— Mar 01: Hong Kong 2022 - 23 Budget Proposal discussed (Tax Alert 2022-0344)
— Mar 02: European Parliament provides recommendations on EU Carbon Border Adjustment Mechanism (Tax Alert 2022-0340)
— Mar 02: Italian Tax Authorities issue resolution on Mandatory Disclosure Rules (Tax Alert 2022-0339)
— Mar 02: Kenya High Court invalidates VAT Regulations, 2017 and declares maritime agency services provided to nonresident shippers should qualify as exported services (Tax Alert 2022-0338)
— Feb 25: Prince Edward Island budget 2022-23 discussed (Tax Alert 2022-0329)
— Feb 25: Hong Kong announces 2022-23 budget (Tax Alert 2022-0327)
— Feb 25: EU Member States adopt revised list of non-cooperative jurisdictions for tax purposes (Tax Alert 2022-0326)
— Feb 25: Alberta budget 2022–23 discussed (Tax Alert 2022-0325)
— Mar 03: Ways and Means Committee hearing on substance use, suicide risk, and the American health system (Tax Alert 2022-0357)
— Mar 02: What to expect in Washington (March 2) (Tax Alert 2022-0346)
— Feb 25: CMS Innovation Center redesigns direct contracting model and releases applications for revised ACO REACH Model (Tax Alert 2022-0328)
— Mar 02: Iowa governor signs legislation that changes corporate and individual income tax rates and overhauls the research activities credit (Tax Alert 2022-0351)
— Mar 02: Oregon employer district transit taxes increase for 2022 (Tax Alert 2022-0349)
— Mar 01: Philadelphia provides guidance concerning the expiration of temporary nexus relief for telework during the COVID-19 emergency (Tax Alert 2022-0343)
— Feb 28: Nevada 2022 SUI wage base increased but tax rates remain unchanged (Tax Alert 2022-0337)
— Feb 28: California bill would establish new unclaimed property voluntary compliance program (Tax Alert 2022-0334)
State and Local Tax Weekly
Highlights of this edition include:
— California Franchise Tax Board TAM discusses application of P.L. 86-272 to activities conducted over the internet In its Technical Advice Memorandum 2022-01 (FTB TAM 2022-01) (issued Feb. 14, 2022), the California Franchise Tax Board (CA FTB) advised on applying P.L. 86-2721 to "fact patterns that are common in the current economy due to technological advancements … " (i.e., activities conducted over the internet and telecommuting).
— Income/Franchise, Sales & Use, Business Incentives, Property Tax, Controversy, Payroll & Employment Tax, Miscellaneous Tax, Unclaimed Property, Value Added Tax, Unclaimed Property
IRS Weekly Wrap-Up
| ||TD 9962||User Fees Relating to the Enrolled Agent Special Enrollment Examination and the Enrolled Retirement Plan Agent Special Enrollment Examination|
| ||REG–114209–21||User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents|
Internal Revenue Bulletin
| ||2022-10||Internal Revenue Bulletin of March 7, 2022|
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.