November 10, 2023
U.S. Tax This Week for November 10
Ernst & Young's U.S. Tax This Week newsletter for the week ending November 10 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 and country officials discuss BEPS 2.0 Pillars One and Two and other OECD tax work
The US Council for International Business (USCIB) and the Organisation for Economic Co-operation and Development (OECD) held their annual tax conference in Washington, DC, on 30-31 October 2023. The bulk of the discussion at the conference focused on developments with respect to Pillars One and Two of the ongoing project on addressing the tax challenges of the digitalization and globalization of the economy (the Base Erosion and Profit Shifting (BEPS) 2.0 project). In addition, there were sessions on the OECD's work on global mobility of workers, carbon mitigation and tax certainty. EY Tax Alert 2023-1838 has details.
OECD releases tax report to G20 Finance Ministers and seventh annual progress report of the Inclusive Framework
On 11 October 2023, the OECD released the Secretary-General Tax Report to the G20 Finance Ministers and Central Bank Governors (the Secretary-General Report) ahead of the fourth and final meeting of the G20 Finance Ministers and Central Bank Governors under the Indian Presidency that took place on 12 and 13 October. The report provides an update on activities with respect to the G20's international tax agenda, including ongoing work on the BEPS 2.0 project, tax transparency, tax and crime, tax and inequality, and global mobility. EY Tax Alert 2023-1849 has details.
EY Guides and Publications
Ernst & Young's 2023 payroll year-end checklist is now available
From tax filing to taxability, there is so much to consider when closing the year and starting anew, and, with federal, state and local rules constantly changing, preparing a year-end payroll checklist is no simple task. To get you started, we have compiled a sample checklist of items to consider for 2023 and 2024, and state charts to guide you through the federal and state Form W-2 and electronic filing requirements that apply.
Payroll Month in Review | October 2023
EY's Employment Tax Advisory Services group has developed the attached publication summarizing the latest employment tax and other payroll developments in an easy-to-read format. Developments in US federal, state and local payroll and human resources matters are highlighted, as are our insights to improve US employment tax and payroll compliance.
International tax talk quarterly series with the EY Global Tax Desk Network (November 14)
During this EY Webcast, Ernst & Young professionals will provide you with information on major tax law changes in the countries and jurisdictions covered by our US-based Global Tax Desk Network.
Tax in a time of transition: Legislative, economic, regulatory and IRS developments (November 17)
During this EY Webcast, Ernst & Young professionals will provide updates on: (i) the US economy and tax policy; (ii) what’s happening at the IRS; and (iii) breaking developments.
Year-end US information reporting changes (November 29)
Year-end US information reporting obligations necessitate being aware of IRS changes and incorporating any new requirements into existing systems, processes, and procedures. The past year saw updates to Forms 1099 and 1042-S reporting requirements, revised IRS tax forms, and new and complex proposed guidance related to digital assets reporting. Join this EY Webcast for a practical discussion of how to manage your information reporting processes.
Recent Tax Alerts
— Nov 08: US court denies Liberty Global's claim for the IRC Section 245A dividends-received deduction on economic substance doctrine grounds (Tax Alert 2023-1857)
Internal Revenue Service
— Nov 09: IRS releases 2024 inflation adjustments for tax provisions (Tax Alert 2023-1863)
— Nov 06: US IRS rules that a foreign limited partnership indirectly owned by a foreign government is not a per se corporation (Tax Alert 2023-1841)
— Nov 09: Uruguay and United States sign exchange-of-information agreement (Tax Alert 2023-1868)
— Nov 09: UAE Minister of Economy announces single unified visa for Gulf Cooperation Council countries (Tax Alert 2023-1860)
— Nov 08: Double tax treaty with United States inches towards Chilean ratification (Tax Alert 2023-1858)
— Nov 08: Global Tax Policy and Controversy Watch | November 2023 edition (Tax Alert 2023-1856)
— Nov 07: Peru implements new residence regulations for nationals of Mercosur and Andean Community Member States (Tax Alert 2023-1852)
— Nov 07: Canada Revenue Agency publishes anticipated list of designated notifiable transactions (Tax Alert 2023-1851)
— Nov 07: OECD releases tax report to G20 Finance Ministers and seventh annual progress report of the Inclusive Framework (Tax Alert 2023-1849)
— Nov 07: Hungary's draft legislation on BEPS 2.0 Pillar Two introduced to Parliament (Tax Alert 2023-1846)
— Nov 07: Denmark announces new short-term work permit exemption for eligible third-country nationals (Tax Alert 2023-1845)
— Nov 07: UK government announces new visa scheme for businesses to attract AI talent(Tax Alert 2023-1844)
— Nov 06: OECD and country officials discuss BEPS 2.0 Pillars One and Two and other OECD tax work (Tax Alert 2023-1838)
— Nov 06: Australia expands pathways to permanent residence (Tax Alert 2023-1835)
— Nov 09: Senate Finance Committee holds hearing on high-income individuals (Tax Alert 2023-1867)
— Nov 09: Senate Finance Committee advances bipartisan health care bill (Tax Alert 2023-1866)
— Nov 09: Ways & Means Committee holds ESG hearing (Tax Alert 2023-1862)
— Nov 08: Senate Budget Committee holds tax hearing on wealthy individuals (Tax Alert 2023-1859)
— Nov 08: What to expect in Washington (November 8) (Tax Alert 2023-1854)
— Nov 06: Puerto Rico's House of Representatives approves bill proposing minimum tax based on Pillar Two of the OECD/G20 BEPS 2.0 project (Tax Alert 2023-1842)
Highlights of this edition include:
- OECD releases text of Amount A Pillar One MLC, Treasury announces consultation
- House of representatives elects new Speaker
- US-Taiwan legislation moves forward
- IRS proposed regulations would amend Section 367(b) regulations applying to certain cross-border triangular reorgs, inbound nonrecognition transactions
- US officials offer update on pending guidance
- IRS informing taxpayers of Schedule UTP non-compliance
- IRS sending compliance alerts to US subs of foreign-owned corporations
- IRS to broaden scope of corporate PLRs
- US-Chile tax treaty’s US reservations reflect current policy
- IRS appeals Tax Court’s latest decision in Medtronic
- US, Israel sign CAA on exchange of CbC reports
- Cyprus issues clarification note on future CbC exchange agreement with US
- OECD/G20 Inclusive Framework launches Multilateral Convention to implement Pillar Two Subject to Tax Rule
- BEPS IF considering Pillar Two guidance on deferred tax assets
- OECD FTA agrees on action to support continued digital transformation, delivering Pillar Two and capacity building
- OECD releases outcomes of sixth peer review on BEPS Action 13 on CbCR
IRS Weekly Wrap-Up
| ||REG–122793–19||Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions|
| ||2023-34||Part III: Administrative, Procedural, and Miscellaneous : 26 CFR 601.602: Tax forms and instructions.|
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.