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October 20, 2023
2023-1747

U.S. Tax This Week for October 20

Ernst & Young's U.S. Tax This Week newsletter for the week ending October 20 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

OECD Forum on Tax Administration agrees on action to support continued digital transformation, delivering Pillar Two and capacity building

The Organisation for Economic Co-operation and Development (OECD)'s Forum on Tax Administration (FTA) held its 16th plenary meeting in Singapore on 11-13 October 2023. The theme of the meeting was "collaboration and partnership," with a focus on three priorities: (i) Supporting the continued digital transformation of tax administration; (ii) Effective and consistent Pillar Two implementation; and (iii) Enhancing the effectiveness and reach of the FTA's global capacity building efforts. EY Tax Alert 2023-1751 has details.

IRS has been informing taxpayers of Schedule UTP non-compliance EY is aware that the IRS has begun sending certain taxpayers letters stating that they have not complied with the rules for reporting an uncertain tax position (UTP). Specifically, the letters state that the Schedule UTP does not fulfill the requirements of a "concise description" for one or more reportable UTPs. EY Tax Alert 2023-1731 has details.

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EY Guides, Surveys, and Reports

TradeFlash | October 2023
In this issue, we provide links to EY content covering key trade topics such as the reform of the Union Customs Code, implementation of Carbon Border Adjustment Mechanisms (CBAMs) in the EU and UK, proposals for a CBAM in Australia, tariff changes and legislative changes to Free Zones and Customs laws.

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Upcoming Webcasts

US corporate income tax compliance: Insights from Tax Year 2022 and considerations for the future (October 25)
During this EY Webcast, Ernst & Young professionals will provide the latest insights on dynamic compliance environment and how your company can continue navigating its complexity and challenges. We will also focus on preparing for tax year 2023 (TY23) and beyond.

Crypto and digital asset information reporting: Navigating the operational challenges of the recently proposed regulations (November 1)
The proposed regulations issued by the IRS and Treasury Department introduce new standards unlike any seen previously in the digital asset space. From traditional financial institutions to decentralized exchanges, firms across the industry will need to determine how the new regulatory requirements impact any existing processes and technology, from customer onboarding to reporting. During this EY Webcast, Ernst & Young professionals will discuss operational challenges, implementation considerations, and maintaining a seamless client experience in the dynamic digital asset sector.

Realizing the full potential of your tax and finance function: Insights and leading practices for financial services institutions (November 7)
During this EY Webcast, Ernst & Young professionals will discuss how financial services institutions are elevating their tax operating models to: (i) empower their people to shape change; (ii) utilize technology to improve efficiency and data integrity; and (iii) future-proof their tax and finance responsibilities.

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Recent Tax Alerts

Internal Revenue Service

— Oct 19: IRS releases details on claiming IRC Section 45L credit for new energy-efficient homes (Tax Alert 2023-1741)

— Oct 17: IRS has been informing taxpayers of Schedule UTP non-compliance (Tax Alert 2023-1731)

— Oct 16: IRS appeals Tax Court's latest decision in Medtronic (Tax Alert 2023-1727)

— Oct 16: IRS releases guidance on transferring clean vehicle credits (Tax Alert 2023-1723)

— Oct 16: TIGTA releases audit report on TE/GE customer service with recommendations (Tax Alert 2023-1722)

— Oct 16: Senate committee report on non-profit hospitals recommends minimum requirements for meeting community benefit standard (Tax Alert 2023-1721)

International

— Oct 19: Polish Ministry of Finance issues draft explanations illuminating Beneficial Owner concept (Tax Alert 2023-1746)

— Oct 19: Italian draft ministerial decree provides implementation rules for Investment Management Exemption regime (Tax Alert 2023-1745)

— Oct 19: Brazil publishes Normative Instruction to regulate the new Brazilian transfer pricing system (Tax Alert 2023-1744)

— Oct 19: Israel travel and mobility update provided (Tax Alert 2023-1743)

— Oct 18: ECOFIN adopts revised list of non-cooperative jurisdictions for tax purposes (Tax Alert 2023-1739)

— Oct 18: The Latest on BEPS and Beyond | October 2023 edition (Tax Alert 2023-1738)

— Oct 18: Costa Rica implements new visa requirement for nationals of Honduras (Tax Alert 2023-1736)

— Oct 18: South Africa opens applications for the Trusted Employers Scheme pilot program (Tax Alert 2023-1734)

— Oct 17: Netherlands Proposal to align legal entity and partnership classification rules with international tax standards, including earlier look-through rule (Tax Alert 2023-1733)

— Oct 17: Panamanian Tax Authority further extends deadline for resident agents to file affidavit on accounting records of offshore entities (Tax Alert 2023-1732)

— Oct 17: Costa Rica removed from EU's 'blacklist' of non-cooperative jurisdictions for tax purposes (Tax Alert 2023-1730)

— Oct 17: Bermuda's proposed corporate income tax takes shape with release of second public consultation (Tax Alert 2023-1728)

— Oct 16: Cyprus tax authorities issue clarification note regarding Bilateral Agreement with the United States (Tax Alert 2023-1726)

— Oct 16: Norway publishes fiscal budget for 2024 (Tax Alert 2023-1725)

— Oct 16: Panama enacts law creating transitory tax-recovery measures and abbreviated audit procedures (Tax Alert 2023-1724)

— Oct 16: EU | Compliance obligations for EU CBAM (Tax Alert 2023-1719)

— Oct 16: UK visa application center temporarily closed in Tel Aviv, Israel (Tax Alert 2023-1718)

— Oct 13: Ireland announces Budget 2024 (Tax Alert 2023-1713)

— Oct 13: Indonesia's new regulations impacting business visitors to go into effect by 23 October 2023 (Tax Alert 2023-1712)

— Oct 13: Mexico offers tax incentives to taxpayers in key sectors of the export industry (Tax Alert 2023-1711)

— Oct 13: Rwanda gazettes amendments to the Income Tax Law, changing certain reporting requirements and the corporate rate (Tax Alert 2023-1710)

— Oct 13: Rwanda gazettes new law on Value Added Tax (Tax Alert 2023-1709)

— Oct 13: Mexico implements new visa requirement for transit purposes (Tax Alert 2023-1707)

— Oct 13: South Africa updates the Critical Skills List and Critical Skills Work Visa framework (Tax Alert 2023-1705)

Legislation

— Oct 18: What to expect in Washington (October 18) (Tax Alert 2023-1735)

States

— Oct 18: New dollar amount for PCORI fee calculation is $3.22 per covered life (Tax Alert 2023-1740)

— Oct 18: Colorado requires employee annual notice of earned income tax and other federal and state tax credits (Tax Alert 2023-1737)

— Oct 17: Elizabethtown, Kentucky passes ordinance to increase its Occupational License Tax starting in 2024 (Tax Alert 2023-1729)

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IRS Weekly Wrap-Up

Final Regulations

 TD 9981Requirements for Type I and Type III Supporting Organizations
 TD 9979Additional Guidance on Low-Income Communities Bonus Credit Program
 TD 9983Mortality Tables for Determining Present Value Under Defined Benefit Pension Plans
 TD 9982User Fees Relating to Enrolled Actuaries

Proposed Regulations

 REG-127391-16Modernizing Regulations on Sales of Seized Property
 REG-103525-23Plan-Specific Substitute Mortality Tables for Determining Present Value

Revenue Rulings

 2023-20Section 1274 — Determination of issue price in the case of certain debt instruments issued for property

Notices

 2023-70Sections 4375 & 4376 – insured and self-insured health plans adjusted applicable dollar amount for fee imposed by sections 4375 and 4376
 2023-71Relief for taxpayers affected by the terroristic action in the state of Israel
 2023-72Update for weighted average interest rates, yield curves, and segment rates
 2023-73Mortality table for use in determining minimum present value for 2024

Internal Revenue Bulletin

 2023-43Internal Revenue Bulletin of October 23, 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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