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September 25, 2022

U.S. Tax This Week for September 23

Ernst & Young's U.S. Tax This Week newsletter for the week ending September 23 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

Official reemphasizes IRS focus on penalties in transfer pricing cases

During a TEI seminar on September 20, an official working in the IRS's transfer pricing practice stated that the IRS will assert more penalties in the hopes of receiving better documentation reports, according to an article in Tax Notes Today. Although the IRS will not apply a "'wholesale across-the-board' assertion of penalties," the official noted that it previously failed to apply penalties where appropriate. In the future, the IRS aims to refocus its efforts on applying penalties to avoid such errors. EY Tax Alert 2022-1426 has details.

OECD holds public consultation meeting on Progress Report on Amount A of Pillar One

On 12 September 2022, the OECD held a public consultation meeting on the Progress Report on Amount A of Pillar One (the Progress Report), which had been released by the OECD Secretariat on 11 July 2022 in connection with the ongoing OECD/G20 project on Addressing the Tax Challenges Arising from the Digitalisation of the Economy (the so-called BEPS 2.0 project). The Progress Report describes the proposed design for Amount A, reflecting the mechanics for the new nexus and profit allocation rules being developed under Pillar One with the aim of providing market jurisdictions with a greater share of the taxing rights over global business income. EY Tax Alert 2022-1400 has details.

Upcoming Webcasts

Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS developments (September 30)
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.

Financing the energy transition: Tax equity, direct pay and transferability (October 6)
During this EY Webcast, Ernst & Young professionals will explore tax equity structures, the interplay with direct pay and transferability provisions, and how each impact energy expansion investments.

Recent Tax Alerts

Internal Revenue Service

— Sep 22: Official reemphasizes IRS focus on penalties in transfer pricing cases (Tax Alert 2022-1426)

— Sep 22: IRS extends due dates for filing tax returns and making tax payments to February 15, 2023, for victims of Hurricane Fiona (Tax Alert 2022-1424)

— Sep 21: Tax M&A Update for August 2022 (Tax Alert 2022-1420)

— Sep 21: LB&I accepting new applicants for the 2023 CAP program (Tax Alert 2022-1419)

— Sep 21: Recent IRS penalty relief does not include Forms 990 and 990-EZ or encompass IRC Section 6652 penalties (Tax Alert 2022-1417)

— Sep 21: IRS issues REIT ruling regarding marina floating docks, cabins, dry dock storage income, insurance proceeds and income from amenities and related services (Tax Alert 2022-1413)

— Sep 19: QUEST Economic Update highlights key US and global economic trends - September 19, 2022 (Tax Alert 2022-1403)

— Sep 16: Treasury proposes regulations on review of federal tax controversies by IRS Appeals office (Tax Alert 2022-1395)


— Sep 22: Holders of debt instruments may be required to include certain non-credit card debt-related fees in gross income for tax years beginning on or after January 6, 2022 (Tax Alert 2022-1425)

— Sep 21: Global Tax Policy and Controversy Watch | September 2022 edition (Tax Alert 2022-1421)

— Sep 21: Eligible Ukrainian and Belarussian nationals may now apply for National Visas from within Poland (Tax Alert 2022-1416)

— Sep 21: Colombia introduces environmental taxes in Tax Reform Bill (Tax Alert 2022-1415)

— Sep 21: The Latest on BEPS and Beyond | September 2022 (Tax Alert 2022-1411)

— Sep 21: Key legislative developments for 2023 and 2024 included in the Netherlands budget proposals (Tax Alert 2022-1410)

— Sep 20: Angola and Mauritius execute a double taxation agreement (Tax Alert 2022-1407)

— Sep 19: Colombia temporarily shuts down online visa application platform (Tax Alert 2022-1405)

— Sep 19: France to implement new VAT e-invoicing requirements from 1 July 2024 (Tax Alert 2022-1401)

— Sep 19: OECD holds public consultation meeting on Progress Report on Amount A of Pillar One (Tax Alert 2022-1400)

— Sep 16: USCIS enters next phase of expanding premium processing for previously filed EB-1 and EB-2 National Interest Waiver I-140 petitions (Tax Alert 2022-1396)

— Sep 16: Dominican Republic’s General Directorate of Internal Taxes submits preliminary bill on implementation of mandatory electronic invoicing (Tax Alert 2022-1389)

— Sep 16: Saudi Arabia issues results and decisions following comments received on public consultation to modify Transfer Pricing Bylaws (Tax Alert 2022-1388)

— Sep 16: Denmark suspends visa facilitation agreement with Russia (Tax Alert 2022-1385)


— Sep 23: What to expect in Washington (September 23) (Tax Alert 2022-1432)

— Sep 16: Treasury proposes regulations on review of federal tax controversies by IRS Appeals office (Tax Alert 2022-1395)


— Sep 21: Tennessee SUI tax rates continue at lowest rate schedule for the six months beginning July 1, 2022 (Tax Alert 2022-1422)

— Sep 20: Rhode Island law expands the state's equal pay law effective January 1, 2023 (Tax Alert 2022-1412)

— Sep 19: California allows implementation of new voluntary compliance program for unclaimed property (Tax Alert 2022-1406)

— Sep 19: Puerto Rico’s Treasury Department extends due date for filing the SUT return because of Hurricane Fiona (Tax Alert 2022-1404)

IRS Weekly Wrap-Up

Revenue Procedures

 2022-35Updated Lists of Jurisdictions Under Deposit Interest Rules
 2022-36Examination of returns and claims for refund, credit or abatement; determination of tax liability

Revenue Rulings

 2022-18Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property


 2022-40Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
 2022-42Application of Noncompulsory Payment Regulations to Amendments of Certain Puerto Rico Tax Decrees; Revocation of Notice 2011-29

Internal Revenue Bulletin

 2022-39Internal Revenue Bulletin of September 26, 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.