Tax News Update    Email this document    Print this document  

November 6, 2022

U.S. Tax This Week for November 4

Ernst & Young's U.S. Tax This Week newsletter for the week ending November 4 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 releases 2023 inflation adjustments for fringe benefits and Form W-2/1099 information reporting penalties

In Revenue Procedure 2022-38, the IRS announced the 2023 inflation adjustments that will apply to certain fringe benefits and to Form W-2/1099 information reporting penalties. EY Tax Alert 2022-1636 has details.

Netherlands issues updated ATAD 2 Decree that will benefit certain cost-plus situations for US corporations with disregarded Dutch taxpayers

The Dutch anti-hybrid rules as mandated by the EU's ATAD 2 apply for tax book years starting on or after 1 January 2020.1 The legislation contains provisions to counter hybrid mismatches that result in a so-called deduction without inclusion, a double deduction or an imported hybrid mismatch. On 3 November 2022, the Dutch State Secretary of Finance published an updated Decree with guidance on the application of the Dutch ATAD 2 (anti-hybrid) legislation (new Decree). The new Decree maintains the guidance included in the Decree published on 11 October 2021 and includes new beneficial guidance for certain cost-plus situations involving US corporations with disregarded Dutch taxpayers. EY Tax Alert 2022-1659 has details.

Upcoming Webcasts

International tax talk quarterly series with the EY Global Tax Desk Network: A discussion on recent tax developments in the LATAM region (November 8)
Latin America has a complex tax environment, and recent developments in the region have resulted in additional considerations for year-end and future years. During this EY Webcast, Ernst & Young professionals will address the expected impact of regional developments.

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.

BorderCrossings ... With EY transfer pricing and tax professionals (November 17)
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.

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

— Nov 03: In calculating self-dealing excise tax, disqualified person's loan balance includes unpaid interest from closed years (Tax Alert 2022-1658)

— Oct 28: IRS Exempt Organizations and Government Entities division chief details FY22 compliance projects (Tax Alert 2022-1637)

— Oct 31: IRS releases 2023 inflation adjustments for fringe benefits and Form W-2/1099 information reporting penalties (Tax Alert 2022-1636)

— Oct 31: IRS releases the qualified retirement plan limitations for year 2023: 401(k) pretax limit increases to $22,500; catch-up limit rises to $7,500 (Tax Alert 2022-1635)


— Nov 03: Peruvian President ratifies Convention to Harmonize the Double Tax Treaties of Pacific Alliance (Tax Alert 2022-1655)

— Nov 03: Spain implements reverse hybrid mismatches rule under EU ATAD 2 (Tax Alert 2022-1654)

— Nov 03: EY Canada's Tax Matters @ EY for November 2022 (Tax Alert 2022-1653)

— Nov 03: UAE amends VAT Decree Law (Tax Alert 2022-1650)

— Nov 02: Senegal introduces COVID-19 vaccination requirement for inbound travelers (Tax Alert 2022-1648)

— Nov 02: Argentine Tax Authority extends suspension of mandatory disclosure regime (Tax Alert 2022-1646)

— Nov 01: Spanish tax authorities deny interest deductions on debt to fund a share premium distribution, overall transaction declared as abusive in binding report (Tax Alert 2022-1643)

— Nov 01: Turkey extends application of corporation tax exemption on "FX-protected Deposit and Participation Accounts" to 30 September dated balance sheets (Tax Alert 2022-1641)

— Oct 31: Japan’s consumption tax reform will be effective from 1 October 2023 (Tax Alert 2022-1640)

— Oct 31: Spain relaxes entry rules for individuals traveling from outside of the European Union and Schengen Area (Tax Alert 2022-1639)

— Oct 28: Peru enacts regulations on temporary VAT reduction for specific hotels and restaurants (Tax Alert 2022-1628)


— Oct 28: Treasury announces $5 billion award for New Markets Tax Credit program for CY 2021 (Tax Alert 2022-1634)


— Nov 01: Arizona announces lower income tax withholding rates for 2022 and 2023 (Tax Alert 2022-1645)

Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

Maryland Circuit Court strikes down Digital Advertising Services Tax, citing violations of Internet Tax Freedom Act, Commerce Clause and First Amendment. Anne Arundel County (MD) Circuit Court Judge Alison Asti held that the Maryland's Digital Advertising Services Tax (DAT), which took effect on Jan. 1, 2022, violates (1) the Internet Tax Freedom Act (ITFA) and Supremacy Clause because it "constitutes a discriminatory tax"; (2) the Commerce Clause as it discriminates against interstate commerce; and (3) the First and Fourteenth Amendments because it singles out the plaintiff for selective taxation and is not content-neutral.

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

IRS Weekly Wrap-Up


 2022-58Request for Comments on Credits for Clean Hydrogen and Clean Fuel Production
 2022-57Request for Comments on the Credit for Carbon Oxide Sequestration
 2022-56Request for Comments on Section 45W Credit for Qualified Commercial Clean Vehicles and Section 30C Alternative Fuel Vehicle Refueling Property Credit

Internal Revenue Bulletin

 2022-45Internal Revenue Bulletin of November 7, 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.