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October 2, 2022
2022-1465

U.S. Tax This Week for September 30

Ernst & Young's U.S. Tax This Week newsletter for the week ending September 30 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.

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Top of the Week

EY updates Technical Line on accounting for the effects of the Inflation Reduction Act and the CHIPS and Science Act

EY's Technical Line, Accounting for the effects of the Inflation Reduction Act and the CHIPS and Science Act, has been updated to reflect the FASB staff's response to a technical inquiry about whether a company should consider the effects of being subject to the new corporate alternative minimum tax (CAMT) in the future, when assessing the realizability of tax benefits from deductible temporary differences and carryforwards, as well as tax credits. EY Tax Alert 2022-1464 has details.

IRS releases per diem rates under the high-low substantiation method effective October 1, 2022 (or optionally, January 1, 2023)

In Notice 2022-44, the IRS released the per diem reimbursement rates that will apply effective October 1, 2022 (or, optionally, January 1, 2023). The per diem reimbursement rate for high-cost areas increases from $296 to $297 and from $202 to $204 for low-cost areas. There were also numerous changes to the areas that qualify as high-cost. EY Tax Alert 2022-1454 has details.

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EY Guides and Publications

EY publication highlights accounting implications of 2022 Q3 income tax developments
The Quarterly tax developments for the quarter ended September 30 is attached below. Prepared by Ernst & Young LLP's Tax Accounting group, this publication provides a quarterly overview of enacted tax legislation, as well as regulatory developments and other items through September 15, 2022, except as noted.

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Upcoming Webcasts

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.

EY Tax.Tech™ Ecosystem series: Unlocking the power of connected tax analytics (October 20)
During this EY Webcast, Ernst & Young professionals will showcase our EY Connected Tax Analytics in Power-BI, leveraging Thomson Reuters integration to supercharge and automate your corporate income tax compliance preparation and review process in ONESOURCE Income Tax. They’ll take you through the latest in use cases and preview what’s ahead.

US corporate income tax compliance: Insights from Tax Year 2021 and planning for the next age of compliance (October 26)
During this EY Webcast, Ernst & Young professionals will discuss lessons learned from this year’s dynamic compliance environment – and how to plan for the 2022 federal, international and state tax filing season – and beyond.

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Recent Tax Alerts

Courts

— Sep 29: Tax Court holds farmers don't get charitable deductions for donating crops to CRATs and income from crops is taxable to them (Tax Alert 2022-1457)

International

— Sep 29: German Government issues draft order decree law on cross-border transfer of function rules (Tax Alert 2022-1460)

— Sep 29: Denmark proposes taxation of dividends paid to foreign states (Tax Alert 2022-1453)

— Sep 28: Spanish Tax Authority issues FAQs regarding new plastic packaging tax (Tax Alert 2022-1452)

— Sep 27: Canada to lift remaining COVID-19 border requirements including vaccination, testing, and ArriveCAN as of October 1 (Tax Alert 2022-1448)

— Sep 26: UK Government presents mini-Budget and Growth Plan (Tax Alert 2022-1444)

— Sep 26: Algeria issues governing decrees related to new Investment Law (Tax Alert 2022-1443)

— Sep 23: Brazil publishes Provisional Measure addressing withholding tax exemption for certain Brazilian corporate securities and private equity funds (Tax Alert 2022-1434)

Legislation

— Sep 28: What to expect in Washington (September 28) (Tax Alert 2022-1449)

— Sep 28: White House holds conference on hunger, nutrition, and health, releases national strategy and announces other agency actions (Tax Alert 2022-1455)

— Sep 23: House Ways and Means Committee advances mental health and MIECHV reauthorization legislation (Tax Alert 2022-1433)

States

— Sep 29: Iowa certifies corporate income tax rate reductions for tax years beginning on or after January 1, 2023 (Tax Alert 2022-1462)

— Sep 27: Michigan court holds that the state legislature's changes in 2018 to the state's paid sick pay leave and minimum wage laws were unconstitutional (Tax Alert 2022-1450)

— Sep 23: Puerto Rico's Treasury Department temporarily exempts prepared food from sales tax because of Hurricane Fiona (Tax Alert 2022-1438)

— Sep 23: IRS and Treasury intend to issue proposed regulations on application of the noncompulsory payment regulations to certain amended Puerto Rico tax decrees (Tax Alert 2022-1435)

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IRS Weekly Wrap-Up

Final Regulations

 TD 9966User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents

Notices

 2022-43Extension of Replacement Period for Livestock Sold on Account of Drought
 2022-442022--2023 Special Per Diem Rates
 2022-45Extension of deadline for amending an eligible retirement plan

Internal Revenue Bulletin

 2022-40Internal Revenue Bulletin of October 3, 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.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

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