March 13, 2022
U.S. Tax This Week for March 11
Ernst & Young's U.S. Tax This Week newsletter for the week ending March 11 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 passes $1.5T omnibus bill with telehealth extensions and other health care provisions
On March 9, the House passed a $1.5 trillion omnibus spending bill (HR 2471) to fund the federal government through the remainder of fiscal year (FY) 2022 and appropriate $13.6 billion in humanitarian and military aid to Ukraine. The House passed the bill in two votes: the first vote 361-69 to pass defense funding and a second vote 260-171 to pass domestic agency funding. EY Tax Alert 2022-0398 has details.
Our US employment tax rates and limits publication is updated through February 2022
We are pleased to announce we have updated our annual publication of key federal and state rates and limits for 2022. The updated guide reflects changes in the 2022 state income tax withholding rates/tables and state unemployment insurance wage bases and tax rates. EY Tax Alert 2022-0402 has details.
Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS (March 18)
During this EY Webcast, Ernst & Young professionals will discuss how businesses can navigate the tax policy environment and continue to effectively operate their tax function in this time of crisis and change. Panelists will provide updates on: (i) the US economy and tax policy; (ii) breaking developments; and (iii) what’s happening at the IRS.
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.
US corporate income tax compliance - Tax year 2021 readiness and preparing your tax function for what’s next (April 6)
During this EY Webcast, Ernst & Young professionals will discuss preparing for 2021 US federal and state tax filings as well as key considerations for international filers.
Recent Tax Alerts
— Mar 09: In taxpayer-favorable decision, Tax Court holds insurance policies' cash-surrender values aren't included in taxpayer's estate where decedent had no right to terminate policies (Tax Alert 2022-0392)
— Mar 07: Partnership's environmental consulting activities were profit-driven, even if imperfect, Tax Court concludes (Tax Alert 2022-0382)
— Mar 04: Federal court rules challenge to Maryland's Digital Advertising Services Tax barred by Tax Injunction Act, but pass-through prohibition may be challenged (Tax Alert 2022-0375)
Internal Revenue Service
— Mar 10: TE/GE director suggests contacting the IRS for corrections to the Business Master File Extract, refers applicants to IRS webpage for exemption application status updates (Tax Alert 2022-0399)
— Mar 08: Tax M&A Update for February 2022 (Tax Alert 2022-0383)
— Mar 04: QUEST Economic Update highlights key US and global economic trends - March 4, 2022 (Tax Alert 2022-0376)
— Mar 10: Peru's President amends the Tax Code (Tax Alert 2022-0403)
— Mar 10: Italian Tax Authorities issue implementing instructions for new patent box regime (Tax Alert 2022-0401)
— Mar 10: PE Watch | Latest developments and trends, March 2022 (Tax Alert 2022-0397)
— Mar 09: Colombia and the Netherlands sign double tax treaty (Tax Alert 2022-0396)
— Mar 09: US bans imports of Russia energy products; bans exports of oil refinery equipment to Russia (Tax Alert 2022-0394)
— Mar 09: Italy revamps opportunity to tax step-up participations and land (Tax Alert 2022-0393)
— Mar 09: Canada releases proposed EIFEL rules (Tax Alert 2022-0391)
— Mar 09: New Zealand delays introduction of proposed changes to GST invoicing requirements (Tax Alert 2022-0387)
— Mar 08: Costa Rica proposes allowing corporations to pay annual tax owed for tax years 2016 through 2021 on legal entities without paying interest and penalties (Tax Alert 2022-0386)
— Mar 08: Canada announces new immigration measures to support those impacted by the Ukrainian crisis (Tax Alert 2022-0385)
— Mar 08: Peru's President amends law regulating use of Peruvian banking system for tax purposes (Tax Alert 2022-0384)
— Mar 07: Bahrain introduces Golden Residence Permits (Tax Alert 2022-0380)
— Mar 07: CJEU holds that customer recharge of costs of repair of goods under warranty to its supplier may be deemed consideration for supply by the customer (Tax Alert 2022-0379)
— Mar 04: USCIS decouples adjudication of applications for Employment Authorization and Advance Parole travel documents to address backlog (Tax Alert 2022-0373)
— Mar 04: US designates Ukraine for Temporary Protected Status for eighteen months (Tax Alert 2022-0372)
— Mar 04: Mexican input VAT may no longer be creditable for activities performed outside Mexico - action required by March 10 (Tax Alert 2022-0370)
— Mar 04: Yukon budget 2022-23 discussed (Tax Alert 2022-0366)
— Mar 04: Canada imposes new sanctions on Russia, ceases issuance of export permits for exports of goods to Russia (Tax Alert 2022-0365)
— Mar 10: House passes $1.5T omnibus bill with telehealth extensions and other health care provisions (Tax Alert 2022-0398)
— Mar 09: What to expect in Washington (March 9) (Tax Alert 2022-0390)
— Mar 10: Our US employment tax rates and limits publication is updated through February 2022 (Tax Alert 2022-0402)
— Mar 09: California guidance addresses Proposition 19 changes to property tax consequences of certain real property transfers (Tax Alert 2022-0389)
— Mar 07: Idaho law extends 2021 SUI tax rates through 2023; 2022 SUI wage base increased (Tax Alert 2022-0381)
State and Local Tax Weekly
Highlights of this edition include:
- California bill would establish new unclaimed property voluntary compliance program. Legislation (2022 CA AB 2280) introduced in the California Assembly on Feb. 16, 2022, would allow the California State Controller's Office (CA SCO) to establish a voluntary compliance program (VCP) for certain unclaimed property holders (Holders), allowing them to report past-due unclaimed property without having to pay interest.
- Income/Franchise, Sales & Use, Business Incentives, Property Tax, Controversy, Compliance & Reporting, Payroll & Employment Tax, Unclaimed Property
Highlights of this edition include:
- G20 confirms BEPS 2.0 ambitious timeline; Republican Senators voice concerns
Treasury and IRS news
- IRS releases FAQs on Schedules K-2 and K-3 transition relief
- Treasury official briefs Senators on future cryptocurrency reporting regulations
- OECD releases Pillar One public consultation document on draft nexus and revenue sourcing rules
- OECD releases Pillar One public consultation document on draft rules for tax base determinations
IRS Weekly Wrap-Up
| ||TD 9960||Guidance Under Section 958 on Determining Stock Ownership; Correction|
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.