October 30, 2022
U.S. Tax This Week for October 28
Ernst & Young's U.S. Tax This Week newsletter for the week ending October 28 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/G20 Inclusive Framework holds 14th plenary meeting and publishes 6th annual progress report
On 4 October 2022, the Organisation for Economic Co-operation and Development (OECD) published the sixth annual progress report of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) (the Progress Report). The Progress Report describes developments in the work on addressing the tax challenges of the digitalization of the economy (the BEPS 2.0 project) as well as other activity of the Inclusive Framework during the period from September 2021 to September 2022. On 6-7 October 2022, the Inclusive Framework held its 14th plenary meeting, with over 500 delegates from over 135 jurisdictions participating either in person or virtually. Several sessions of the meeting were streamed for public viewing, including discussions on climate change and tax policy, tax transparency, digitalization of tax administration, and tax and development. EY Tax Alert 2022-1618 has details.
USCIS again extends COVID-19-related flexibilities
On October 24, U.S. Citizenship and Immigration Services (USCIS) announced it is extending the flexibilities for responding to requests, notices, and decisions issued in connection with certain immigration benefits and programs, including, but not limited to requests for evidence, notices of intent to deny, notices of intent to revoke and notices of intent to rescind. We note that the flexibility policy does not require any showing of cause for the delay in responding to USCIS. As such, anyone required to respond to USCIS may take advantage of the additional time if the request, notice, or decision meets the eligibility requirements set out in the announcement. The additional 60 calendar days can be advantageous when preparing a successful response, particularly in cases involving complex facts or issues. EY Tax Alert 2022-1620 has details.
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.
An essential unclaimed property update (November 15)
During this EY Webcast, Ernst & Young professionals will provide an update on legislation, real-time controversy issues, industry responses and overall trends. The panelists will also discuss the impact of recent developments on current and future compliance issues, in addition to identifying leading practices that are vital to an effective unclaimed property compliance program.
Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS developments (November 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.
Recent Tax Alerts
Internal Revenue Service
— Oct 21: IRS updates Schedule UTP to report uncertain tax positions (Tax Alert 2022-1602)
— Oct 27: Portugal publishes regulations relating to multiple immigration categories (Tax Alert 2022-1627)
— Oct 27: Kenya High Court holds that a decision for abandonment of taxes is upon initiation and determination by the Commissioner (Tax Alert 2022-1626)
— Oct 27: Australia issues 2022-23 October Federal Budget (Tax Alert 2022-1624)
— Oct 26: Sweden announces new requirements for immigration applications (Tax Alert 2022-1622)
— Oct 26: Bulgarian Government proposes VAT bad debt relief (Tax Alert 2022-1621)
— Oct 25: Hong Kong announces new immigration policies to attract overseas and mainland Chinese talent (Tax Alert 2022-1619)
— Oct 25: Netherlands launches consultation on BEPS 2.0 – Pillar Two implementation (Tax Alert 2022-1617)
— Oct 24: Malaysia imposes excise duty on premix preparations (Tax Alert 2022-1616)
— Oct 24: Chile’s Executive Power modifies tax reform bill (Tax Alert 2022-1612)
— Oct 24: Argentina issues new regulations on "tax for an inclusive and supportive Argentina" (Tax Alert 2022-1611)
— Oct 24: Ghana enacts various amendments to tax laws introduced in 2022 Mid-year Budget Review Statement (Tax Alert 2022-1610)
— Oct 21: OECD releases public consultation document on administration and tax certainty aspects of Amount A of Pillar One (Tax Alert 2022-1608)
— Oct 21: Israel publishes new TP regulations following adoption of BEPS Action 13 principles in domestic legislation (Tax Alert 2022-1607)
— Oct 21: Cyprus adopts Law on Shipping Limited Liability Company (Tax Alert 2022-1606)
— Oct 21: G20 Finance Ministers welcome progress made on BEPS 2.0 and call for swift implementation (Tax Alert 2022-1603)
— Oct 26: Indiana Department of Revenue announces that five counties have increased their income tax rates effective October 1, 2022 (Tax Alert 2022-1623)
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|
| ||2022-55||2023 Limitations Adjusted as Provided in Section 415(d), etc.|
Internal Revenue Bulletin
| ||2022-44||Internal Revenue Bulletin of October 31, 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.