October 23, 2022
U.S. Tax This Week for October 21
Ernst & Young's U.S. Tax This Week newsletter for the week ending October 21 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
IRS updates Schedule UTP to report uncertain tax positions
The IRS has released a draft of the new Schedule UTP, Uncertain Tax Position Statement, with accompanying instructions. The updated draft requires corporations to submit additional information, including more robust concise descriptions, in an attempt to meet the schedule's original goals of earlier certainty, consistent treatment and efficient use of resources. EY Tax Alert 2022-1602 has details.
OECD publishes final Crypto-Assets Reporting Framework and amendments to Common Reporting Standard
On 10 October 2022, the Organisation for Economic Co-operation and Development (OECD) published their final report which details new and amended reporting requirements covering the reporting of crypto-assets and e-money. The report also contains broader revisions to the existing Common Reporting Standard (CRS). EY Tax Alert 2022-1570 has details.
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.
BorderCrossings . . . With EY transfer pricing and tax professionals (October 27)
During this EY Webcast, Ernst & Young transfer pricing and tax professionals will help you stay informed and able to adopt a more proactive stance in developing and defending your transfer pricing policies and practices.
IRA and CHIPS and Science Act update: A deeper dive into the tax credits and grants (November 2)
Since the enactment of the Inflation Reduction Act of 2022 (IRA) and the CHIPS and Science Act of 2022 (CHIPS) a few months ago, companies have begun looking more closely at the requirements for claiming the Acts’ tax credits and grants. Many have similar questions about how the requirements work, as well as the applicability, timing and process for disbursement of these incentives. During this EY Webcast, Ernst & Young professionals will discuss the technical aspects of these incentives.
Recent Tax Alerts
— Oct 20: Tax Court holds that accounting firm 'clients' are an intangible asset, partnership's allocations of income lacked substantial economic effect (Tax Alert 2022-1593)
Internal Revenue Service
— Oct 20: IRS official said agency might be more selective on APAs given availability of ICAP in transfer pricing disputes (Tax Alert 2022-1597)
— Oct 19: IRS increases estate tax basic exclusion, annual gift tax exclusion for 2023, along with other exemptions and deductions (Tax Alert 2022-1586)
— Oct 14: Social Security wage base to increase in 2023 (Tax Alert 2022-1560)
— Oct 20: USTR announces next steps in statutory four-year review of China 301 tariffs (Tax Alert 2022-1596)
— Oct 20: US Implements new technology export controls on China (Tax Alert 2022-1591)
— Oct 20: Curaçao publishes first unilateral decree for the avoidance of double taxation (Tax Alert 2022-1590)
— Oct 20: Cyprus Tax Authority issues clarification regarding Competent Authority Agreement with United States for exchange of CbC reports (Tax Alert 2022-1589)
— Oct 20: OECD and UN | Tax Inspectors Without Borders publish Annual Report 2022 (Tax Alert 2022-1588)
— Oct 20: Colombia’s modified tax reform bill approved in first debate (Tax Alert 2022-1584)
— Oct 19: Global Tax Policy and Controversy Watch | October 2022 edition (Tax Alert 2022-1583)
— Oct 19: Italian Court holds that lower mortgage registration tax and land registry fees applicable to resident close-ended investment funds are applicable to nonresident open-ended funds investing in Italian real estate used for commercial purposes (Tax Alert 2022-1582)
— Oct 19: Ireland introduces new Employment Permits Bill (Tax Alert 2022-1581)
— Oct 19: Czech Republic prohibits certain Russian nationals from entering for tourism, sports or cultural purposes (Tax Alert 2022-1580)
— Oct 19: Peru Tax Authority publishes new High Risk Schemes under GAAR (Tax Alert 2022-1579)
— Oct 19: The Latest on BEPS and Beyond | October 2022 edition (Tax Alert 2022-1577)
— Oct 18: South Africa deposits its instrument of ratification in respect of the MLI (Tax Alert 2022-1575)
— Oct 18: UK Chancellor reverses most of the Growth Plan tax measures (Tax Alert 2022-1574)
— Oct 17: OECD publishes final Crypto-Assets Reporting Framework and amendments to Common Reporting Standard (Tax Alert 2022-1570)
— Oct 17: Luxembourg Draft Budget Law 2023 clarifies Reverse Hybrid Entity Rule (Tax Alert 2022-1569)
— Oct 17: Argentine Government issues new exemptions on foreign exchange controls in relation to exports of knowledge-based economy activities (Tax Alert 2022-1568)
— Oct 17: Uruguay’s Executive Branch approves conditions for employees of Free Trade Zone users to work remotely (Tax Alert 2022-1563)
— Oct 14: Japan significantly relaxes entry restrictions for foreign nationals (Tax Alert 2022-1561)
— Oct 14: Spanish tax authorities deem a series of consecutive intra-group share transfers as abusive and potentially subject to penalties in binding report (Tax Alert 2022-1559)
— Oct 14: Mexico ratifies MLI; timeline for entry into force will be triggered once instrument of ratification is deposited in the OECD (Tax Alert 2022-1558)
— Oct 14: New Zealand introduces range of new quasi-taxes to combat climate change (Tax Alert 2022-1555)
— Oct 17: Maryland Circuit Court strikes down Digital Advertising Services Tax, citing violations of Internet Tax Freedom Act, Commerce Clause and First Amendment (Tax Alert 2022-1571)
— Oct 17: Puerto Rico's Office of Management and Budget extends the due date for filing the 2022—2023 volume of business declaration to December 22, 2022, because of Hurricane Fiona (Tax Alert 2022-1567)
— Oct 14: Texas Supreme Court lets stand mineral extraction case involving sales and use tax exemption for manufacturing- lower court ruling creates potential refund opportunities (Tax Alert 2022-1564)
State and Local Tax Weekly
Highlights of this edition include:
— Texas Supreme Court lets stand mineral extraction case involving sales and use tax exemption for manufacturing- lower court ruling creates potential refund opportunities. On Sept. 30, 2022, the Texas Supreme Court denied review in Hegar v. Texas Westmoreland Coal Co., in which the Third Court of Appeals (Appeals Court) held that a mining company was entitled to a refund of sales and use tax paid on the lease of three excavators, which the company used to extract and break apart lignite coal ore.
— Income/Franchise, Sales & Use, Business Incentives, Compliance & Reporting, Payroll & Employment Tax, Miscellaneous Tax, Global Trade
IRS Weekly Wrap-Up
| ||REG-121509-00||Exclusion From Gross Income of Previously Taxed Earnings and Profits, and Adjustments to Basis of Stock in Controlled Foreign Corporations and of Other Property|
| ||2022-38||Administrative, Procedural, and Miscellaneous|
| ||2022-20||Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property|
| ||2022-54||Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates|
| ||2022-53||Certain Required Minimum Distributions for 2021 and 2022|
Internal Revenue Bulletin
| ||2022-43||Internal Revenue Bulletin of October 24, 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.