Tax News Update    Email this document    Print this document  

April 24, 2022
2022-0661

U.S. Tax This Week for April 22

Ernst & Young's U.S. Tax This Week newsletter for the week ending April 22 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

OECD releases ninth batch of Stage 2 peer review reports on dispute resolution

On 14 April 2022, the Organisation for Economic Co-operation and Development (OECD) released the ninth batch of Stage 2 peer review reports relating to the outcome of the peer monitoring of the implementation by Andorra, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Faroe Islands, Macau (China), Morocco, and Tunisia (the assessed jurisdictions) of the Base Erosion and Profit Shifting (BEPS) minimum standard on dispute resolution under Action 14 of the BEPS project. EY Tax Alert 2022-0650 has details. [add link]

Wyden-Portman proposal would disallow foreign tax credits and other US tax benefits connected with operations in Russia or Belarus

On April 7, 2022, Senate Finance Committee Chairman Ron Wyden (D-OR) and Senate Finance Committee Member Rob Portman (R-OH) released a discussion draft of proposed legislation that would disallow foreign tax credits for taxes paid to Russia or Belarus, and would also disallow certain other US tax benefits (Proposal). In particular, the Proposal would amend IRC Section 901(j) to deny foreign tax credits for taxes paid or accrued to Russia or Belarus. The Proposal would also eliminate other US tax benefits for persons within the Proposal's scope, including tax treaty benefits, benefits under IRC Section 892, the trading safe harbor under IRC Section 864(b) and the shipping exemption under IRC Section 883. EY Tax Alert 2022-0652 has details.

—————————————————————————
Upcoming Webcasts

Leverage data and AI to enable Finance and Tax to pioneer transformation throughout the organization (April 28)
During this EY Webcast, Ernst & Young professionals and Microsoft discuss how data and AI enable the transformation of the Finance and Tax functions to accelerate meaningful change and improve business outcomes.

Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS developments (April 29)
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.

Work reimagined: How to prepare for ‘renaissance and recommitment’ (May 17)
During this EY Webcast, Ernst & Young professionals will explore the results of the newly released EY 2022 Work Reimagined Survey, which included more than 17,000 employees and 1,500 employers across 22 countries.

—————————————————————————
Recent Tax Alerts

Internal Revenue Service

— Apr 20: Tax M&A Update for March 2022 (Tax Alert 2022-0654)

International

— Apr 21: Mauritius amends income tax regulations regarding 80% income exemption for investment dealers and defining specialized software and systems (Tax Alert 2022-0657)

— Apr 21: Government of Canada to repeal the 'Certain Goods Remission Order' (COVID-19) (Tax Alert 2022-0655)

— Apr 20: Turkey enacts new tax law (Tax Alert 2022-0653)

— Apr 20: OECD releases ninth batch of Stage 2 peer review reports on dispute resolution (Tax Alert 2022-0650)

— Apr 20: UK Tax Authority issues further guidance on UK Plastic Packaging Tax (Tax Alert 2022-0649)

— Apr 20: Turkey increases special consumption tax base for portable radiotelephone devices (Tax Alert 2022-0645)

— Apr 20: The Latest on BEPS and Beyond for April 2022 (Tax Alert 2022-0644)

— Apr 18: Peru's President amends VAT Law and Tax Code (Tax Alert 2022-0635)

— Apr 18: Argentina relaxes COVID-19-related entry requirements (Tax Alert 2022-0634)

— Apr 18: Costa Rica's Ministry of Economy, Industry and Commerce imposes additional ad valorem duty on sugar imports from Colombia (Tax Alert 2022-0633)

Legislation

— Apr 20: Wyden-Portman proposal would disallow foreign tax credits and other US tax benefits connected with operations in Russia or Belarus (Tax Alert 2022-0652)

— Apr 19: CMS issues FY 2023 proposed medicare inpatient payment rule (Tax Alert 2022-0642)

States

— Apr 20: Illinois employers can now take advantage of the workshare program; state unemployment insurance tax rates increase for 2022 (Tax Alert 2022-0651)

— Apr 19: Illinois law requires large employers to report certain payroll information as part of the state's Equal Pay Act registration process (Tax Alert 2022-0643)

— Apr 18: West Virginia law relaxes restriction on employer use of payroll card accounts for the payment of wages (Tax Alert 2022-0638)

— Apr 18: Minnesota legislative houses release separate omnibus tax bills with differing visions for tax relief (Tax Alert 2022-0636)

— Apr 15: Wisconsin updates audit rules for pass-through entities (Tax Alert 2022-0630)

—————————————————————————
Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

Texas Supreme Court clarifies that "origin-based" system applies to sourcing gross receipts from the sale of services for Texas apportionment purposes. In Sirius XM Radio, Inc. v. Hegar, the Supreme Court of Texas (Texas Supreme Court) ruled in favor of the taxpayer, holding that gross receipts from the sale of services should be sourced based on an "origin-based" system.

— Income/Franchise, Sales & Use, Business Incentives, Property Tax, Controversy, Compliance & Reporting, Payroll & Employment Tax, Miscellaneous Tax, Global Trade, Upcoming Webcasts

—————————————————————————
IRS Weekly Wrap-Up

Revenue Procedures

 2022-23Election to deduct production costs

Revenue Rulings

 2022-09Section 1274.—Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

Notices

 2022-15Temporary Relief from Penalty for Failure to Deposit Superfund Chemical Taxes
 2022-16Update for Weighted Average Interest Rates, Yield Curves, and Segment 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.