September 22, 2023
U.S. Tax This Week for September 22
Ernst & Young's U.S. Tax This Week newsletter for the week ending September 22 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
US IRS publishes additional interim guidance clarifying certain provisions of the corporate alternative minimum tax
In Notice 2023-64, the IRS has published interim guidance that clarifies certain provisions of the CAMT, enacted under the Inflation Reduction Act of 2022. The IRS also announced that it plans to issue proposed regulations that are consistent with the guidance in the Notice and previously issued interim guidance in Notice 2023-7 and Notice 2023-20. EY Tax Alert 2023-1570 has details.
US Treasury economist states US preference on transfer pricing rules
Bill Morgan, a financial economist at the US Treasury Department, told a panel at an International Fiscal Association's international tax conference on September 12, 2023, that Treasury would prefer the adoption of Alternative A for the transfer pricing scoping criteria in Amount B. "The whole idea here is that Amount B is a simplification and we don't think that can be achieved by introducing new concepts," Morgan said, according to a Daily Tax Report article. Amount B provides for fixed returns for in-scope in-country baseline marketing and distribution activities. While de minimis retail sales are allowed, the primary focus of Amount B is on the wholesale distribution of goods, including commissionaires and sales agents. Further, the scoping framework explicitly excludes the performance of services and distribution of commodities from scope. EY Tax Alert 2023-1568 has details.
Accounting for income taxes: a quarterly perspective (September 26)
During this EY Webcast, a panel of experienced Ernst & Young LLP professionals, moderated by Angela Evans, Partner, Tax Accounting and Risk Advisory Services (TARAS), 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.
Crypto and digital asset information reporting (September 27)
Recently issued proposed regulations for digital asset information reporting (Form 1099) would require reporting by centralized and de-centralized exchanges, among others, and may have a sweeping impact on an organization’s operational process. For example, onboarding will now require an entity to collect tax forms, transaction systems will need to capture cost basis and sale/transfer information and Forms 1099 will need to be issued annually to the customer and the IRS. The proposed regulations would require reporting in 2026 for sales in 2025. Importantly, that reporting would require cost basis information going back to January 1, 2023. Join this EY Webcast, for a discussion of these proposed changes.
BorderCrossings with EY transfer pricing and tax professionals ... OECD BEPS 2.0 transfer pricing update (September 28)
During this EY Webcast, Ernst & Young professionals will provide a transfer pricing update on the Base Erosion and Profit Shifting (BEPS) 2.0 initiative of the Organisation for Economic Co-operation and Development (OECD), with particular emphasis on Pillar One and the country-by-country (CbC) report safe harbor that is part of Pillar Two.
Metaverse event: Charitable giving with appreciated assets and cryptocurrency (September 29)
During this EY Webcast, join Ernst & Young professionals and Fidelity Charitable® on Friday, September 29 as they explore the metaverse and discuss the tax impacts of charitable giving and the world of cryptocurrencies.
IRC Section 174 interim Treasury and IRS guidance: Technical aspects, business implications and uncertainties of Notice 2023-63 (October 3)
During this EY Webcast, Ernst & Young professionals will discuss the technical aspects, potential implications and uncertainties of Notice 2023-63.
Refocusing on the global trade functional organization ... A global trade perspective (October 5)
Global trade professionals have navigated higher customs duty costs, increased complexity from the ever-changing regulatory environment, and a need for increased operational efficiencies to help reduce supply chain delays. During this EY Webcast, Ernst & Young professionals will share the benchmarking results of peer global trade professionals on how they are organizing their global trade functions to be more efficient, reduce customs duty costs and effectively manage risks, also taking into consideration technology advancements.
Spotlight on BEPS 2.0: developments and practical implications for US MNEs (October 11)
Global minimum tax rules are set to take effect as soon as 2024, and many multinational entities (MNEs) still have a lot to do to prepare. To help with these efforts, EY is launching a one-hour webcast series focused on steps MNEs can take to prepare for, and comply with, these new rules. During this EY Webcast, Ernst & Young Pillar Two subject-matter professionals for an action-oriented panel discussion, moderated by EY’s Jose Murillo, National Tax Department Leader and former US Department of the Treasury Deputy Assistant Secretary (International Tax Affairs).
How to energize a workforce in the great rebalance (October 17)
During this EY Webcast, Ernst & Young professionals discuss the EY 2023 Work Reimagined Survey with insights from 17,050 employees and 1,575 employers in 22 countries, revealing the contours of new workforce realities..
How transferable tax credits are changing the tax landscape (October 17)
The Inflation Reduction Act (IRA) introduced federal transferable tax credits. This EY Webcast, will cover many FAQs, including which tax credits are transferable, an update on the contents of the recently released proposed regulations and how the transfer process works.
Recent Tax Alerts
Internal Revenue Service
— Sep 21: IRS previews proposed changes to Form 6765 and requests comments (Tax Alert 2023-1575)
— Sep 20: IRS publishes additional interim guidance clarifying certain provisions of the corporate alternative minimum tax (Tax Alert 2023-1570)
— Sep 19: IRS announces moratorium on processing new claims for employee retention credit (Tax Alert 2023-1561)
— Sep 21: Canada | Distributed investment plans required to request certain investor information by 15 October 2023 (Tax Alert 2023-1579)
— Sep 21: Qatar mandates health insurance policy for multi-entry work visa holders (Tax Alert 2023-1574)
— Sep 20: Costa Rican President partially vetoes law aimed at making reforms to achieve exclusion from EU list of non-cooperative jurisdictions in tax matters (Tax Alert 2023-1571)
— Sep 20: The Latest on BEPS and Beyond | September 2023 (Tax Alert 2023-1566)
— Sep 20: Luxembourg legislation modernizes subscription tax regime (Tax Alert 2023-1565)
— Sep 20: Argentine Government proposes to evaluate a 15% corporate minimum tax (Tax Alert 2023-1564)
— Sep 19: Netherlands budget proposals: Key legislative developments for 2024 and 2025, including Pillar Two minimum tax (Tax Alert 2023-1563)
— Sep 19: Mexico eliminates COVID-19-related relaxation of immigration deadlines for residence permit holders (Tax Alert 2023-1562)
— Sep 19: Global Tax Policy and Controversy Watch | September 2023 edition (Tax Alert 2023-1560)
— Sep 19: Hong Kong and Bangladesh sign comprehensive double taxation arrangement (Tax Alert 2023-1557)
— Sep 19: Saudi Arabia approves amendments to Income Tax Bylaws and Zakat Regulations (Tax Alert 2023-1556)
— Sep 19: Indonesia introduces new Golden Visa route (Tax Alert 2023-1555)
— Sep 19: Luxembourg implements new immigration regulations for employers, third-country nationals and dependents (Tax Alert 2023-1554)
— Sep 18: Uruguay extends VAT rate-reduction period for tourism sector (Tax Alert 2023-1553)
— Sep 18: Brazil to begin issuing new visa and residence permits for nationals of Community of Portuguese Language Countries (Tax Alert 2023-1550)
— Sep 18: UK's new visa application fees to go into effect on 4 October 2023 (Tax Alert 2023-1549)
— Sep 18: Bulgaria planning to introduce SAF-T, affecting most businesses (Tax Alert 2023-1548)
— Sep 15: Irish Government publishes roadmap for introducing dividend participation exemption to Ireland's corporation tax system (Tax Alert 2023-1543)
— Sep 15: USCIS issues policy guidance to clarify eligibility for Extraordinary Ability and Outstanding Professor/Researcher immigrant visa classifications (Tax Alert 2023-1542)
— Sep 15: Taiwan announces foreign institutional investors may use Taiwan-listed stocks as collateral for offshore investment activities (Tax Alert 2023-1538)
— Sep 15: European Commission proposes BEFIT and Transfer Pricing Directives (Tax Alert 2023-1537)
— Sep 15: Turkiye's Constitutional Court annuls rule that allows blocking access to digital services upon default on Digital Services Tax liability (Tax Alert 2023-1536)
— Sep 20: US Treasury economist states US preference on transfer pricing rules (Tax Alert 2023-1568)
— Sep 20: What to expect in Washington (September 20) (Tax Alert 2023-1567)
— Sep 20: Nebraska district court denies dividend received deduction for IRC Section 965(a) inclusion income (Tax Alert 2023-1572)
— Sep 20: Arkansas lowers personal income and corporate tax rates starting in 2024 (Tax Alert 2023-1569)
— Sep 19: Illinois law requires that employers provide transit benefits to their employees starting in 2024 (Tax Alert 2023-1558)
— Sep 18: Tennessee remote worker triggers state business tax liabilities (Tax Alert 2023-1551)
State and Local Tax Weekly
Highlights of this edition include:
— New Jersey issues corporate income tax nexus guidance, adds various internet and financial activities to lists of protected and unprotected activities under P.L. 86-272. On Sept. 5, 2023, the New Jersey Division of Taxation (NJ DOT) issued guidance (TB-108) describing activities that will create nexus with New Jersey for Corporation Business Tax (CBT) purposes to reflect recent legislative changes (i.e., adoption of a bright-line economic nexus standard and, in the context of combined reporting, adoption of the Finnigan method to source New Jersey receipts).
— Income/Franchise, Sales & Use, Business Incentives, Compliance & Reporting, Payroll & Employment Tax, Miscellaneous Tax, Value Added Tax, Upcoming Webcasts
IRS Weekly Wrap-Up
| ||2023-31||Exceptions from the Electronic Filing Requirements for certain filers of Forms 8955-SSA and 5500-EZ|
| ||2023-18||Section 1274 — Determination of issue price in the case of certain debt instruments issued for property|
| ||2023-63||Guidance on amortization of specified research or experimental expenditures under section 174|
| ||2023-64||Additional interim guidance regarding the application of the Corporate Alternative Minimum Tax under Sections 55, 56a, and 59 of the Internal Revenue Code|
| ||2023-66||Update for weighted average interest rates, yield curves, and segment rates|
Internal Revenue Bulletin
| ||2023-37||Internal Revenue Bulletin of September 11, 2023|
| ||2023-38||Internal Revenue Bulletin of September 18, 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.