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June 15, 2023
2023-1061

U.S. Tax This Week for June 15

Ernst & Young's U.S. Tax This Week newsletter for the week ending June 15 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

US IRS waives addition to tax for a corporation's failure to make estimated tax payments of its CAMT

In Notice 2023-42, the IRS has waived the addition to tax under IRC Section 6655 for a corporation's failure to make estimated tax payments of its corporate alternative minimum tax (CAMT) under IRC Section 55 for a tax year beginning after December 31, 2022, and before January 1, 2024 (covered CAMT year). The IRS states that it is waiving the addition to tax under IRC Section 6655 only for the CAMT liability under IRC Section 55 and is doing so in light of challenges in determining whether a corporation is subject to CAMT (i.e., an "Applicable Corporation" under IRC Section 59(k)) and the amount of a corporation's CAMT liability under IRC Section 55. Although corporations will not be penalized under IRC Section 6655 for failing to make CAMT estimated payments, other additions to tax could be imposed if a corporation fails to timely pay its CAMT liability when due. EY Tax Alert 2023-1038 has details.

Ways & Means approves tax bills on TCJA cliffs, clean energy rollbacks

The House Ways & Means Committee approved three separate tax packages during a lengthy markup June 13, the "Tax Cuts for Working Families Act," "Small Business Jobs Act" and "Build It in America Act" that, when combined into the "American Families and Jobs Act," fulfill Chairman Jason Smith's (R-MO) commitment to develop a tax-based economic package springing from field hearings the committee held earlier this year in West Virginia, Oklahoma and Georgia. The final votes on the bills along party lines came after Republicans defeated a host of Democratic amendments addressing issues such as wage requirements and international tax. EY Tax Alert 2023-1054 has details.

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EY Guides, Surveys, and Reports

TradeFlash | June 2023
In this issue we provide links to EY articles covering key trade topics such as the treatment of royalties, sustainable trade, the impact of supply chain disruption on trade compliance, trade technology and UK free trade agreements.

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Upcoming Webcasts

Accounting for income taxes: A quarterly perspective (June 20)
During this EY Webcast, Ernst & Young professionals will discuss ongoing issues and regulatory trends in the tax accounting arena. Topics will include recent tax legislation with tax accounting implications and a review of current income tax accounting concepts.

Real estate workouts: Federal income tax considerations (June 22)
During this EY Webcast, Ernst & Young professionals will address the US federal income tax considerations applicable to borrowers and lenders in connection with debt workouts and modifications.

State & local tax issues impacting the real estate industry (June 27)
As the real estate industry continues to address today’s challenges – rising interest rates, the potential for a recession, lackluster deal flow and the lingering impacts of COVID-19 – the focus has turned to saving cash and reaffirming balance sheets in anticipation of future growth and positive returns. During this EY Webcast, Ernst & Young professionals will address some of the current trends that clients are thinking about, or should be thinking about, as we navigate through 2023 and beyond.

Finance and treasury: How to navigate the changing global tax landscape (June 28)
During this EY Webcast, Ernst & Young professionals will discuss key tax trends and topics that will affect global finance and treasury activities.

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Recent Tax Alerts

International

— Jun 15: Panama Tax Authority establishes procedure for closing commercial establishments that fail to comply with obligation to issue and/or keep invoices or receipts (Tax Alert 2023-1068)

— Jun 15: Poland extends authorized period of stay for Ukrainian nationals (Tax Alert 2023-1067)

— Jun 15: Lithuania announces new rules governing the issuance of National Visas (Tax Alert 2023-1066)

— Jun 15: Denmark | Corrections to past VAT returns will incur interest from 1 July 2023 (Tax Alert 2023-1062)

— Jun 14: Denmark proposes cultural levy on providers of on-demand streaming services (Tax Alert 2023-1060)

— Jun 14: Canada's Department of Finance releases consultation paper on transfer pricing rules (Tax Alert 2023-1059)

— Jun 14: Nigeria | Highlights of Finance Act 2023 (Tax Alert 2023-1056)

— Jun 14: Ethiopia issues Excise Tax (Amendment) Proclamation, 2023 (Tax Alert 2023-1055)

— Jun 13: Mexico offers tax incentives to taxpayers who perform productive economic activities in the States of Oaxaca and Veracruz (Tax Alert 2023-1053)

— Jun 13: Global Tax Policy and Controversy Watch | June 2023 edition (Tax Alert 2023-1052)

— Jun 13: Peruvian Supreme Court enacts a mandatory ruling regarding Certificates of Residence for Double Tax Treaty purposes (Tax Alert 2023-1051)

— Jun 13: Slovenia announces new regulations regarding Single Permits and residence permits (Tax Alert 2023-1049)

— Jun 13: Supreme Court of Canada applies GAAR in Deans Knight (Tax Alert 2023-1048)

— Jun 13: Peruvian Tax Authority clarifies methodology for determining FMV of listed/unlisted shares in indirect disposal scenario (Tax Alert 2023-1047)

— Jun 09: Thailand BOI announces new measure for companies impacted by global minimum tax under the BEPS 2.0 Pillar Two project (Tax Alert 2023-1037)

— Jun 09: U.S.-Chile tax treaty advances toward ratification (Tax Alert 2023-1033)

Legislation

— Jun 15: Complex calculations - exploring the Corporate AMT (Tax Analysts) (Tax Alert 2023-1063)

— Jun 14: What to expect in Washington (June 14) (Tax Alert 2023-1057)

— Jun 13: Proposed legislation offers guidance on filing requirements under Affordable Care Act (Tax Alert 2023-1046)

— Jun 12: House Ways & Means Committee releases three-bill economic package, sets markup for this week (Tax Alert 2023-1044)

— Jun 09: Finance, Ways & Means Committee leaders introduce bill approving Taiwan trade agreement (Tax Alert 2023-1039)

— Jun 09: House Ways and Means Committee releases three tax bills (Tax Alert 2023-1034)

States

— Jun 15: State law developments could impact tax-exempt organizations (Tax Alert 2023-1064)

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Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

— Tennessee enacts sweeping tax changes, including phase-in of single-sales factor apportionment. On May 11, 2023, Governor Bill Lee signed into law the Tennessee Works Tax Act (HB 323/SB 275), which implements tax relief provisions he proposed as part of his budget.

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

ITS/Washington Dispatch
   Highlights of this edition include:

Legislation

  • Congress passes debt ceiling bill, averts possible default
  • US House Ways & Means Republicans introduce tax increase on foreign companies to influence global tax deal

IRS news

  • IRS proposed regulations would turn off Section 367(d) following certain IP repatriations
  • IRS addresses taxation of digital currency
  • US officials comment on CAMT
  • IRS GLAM concludes FIRPTA regularly-traded-stock-exception test under Section 897(c)(3) applies at partnership level

Tax treaties

  • US negotiating tax agreements with Israel, Switzerland and Norway

OECD developments

  • BEPS Pillar One to follow revised implementation plan
  • G7 Finance Ministers welcomed OECD progress report on tax cooperation, reiterated commitment to Pillars One and Two implementation

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IRS Weekly Wrap-Up

Internal Revenue Bulletin

 2023-24Internal Revenue Bulletin of June 12, 2023

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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