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December 1, 2023
2023-1984

U.S. Tax This Week for December 1

Ernst & Young's U.S. Tax This Week newsletter for the week ending December 1 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's 2022 mutual agreement procedure statistics show US decreasing MAP case inventories, increasing time to close

On November 14, 2023, the OECD released statistics on MAP showing that the US MAP program's inventory decreased by 4% in 2022. In addition, the US MAP program closed more cases (that were started on or after January 1, 2016) than it opened in 2022. The 2022 statistics were released at the OECD's fifth Tax Certainty Day. During the event, the OECD also released the 2022 MAP awards. EY Tax Alert 2023-1960 has details.

Italy | Overview of recent tax developments including BEPS Pillar Two provisions

Several significant Italian tax measures are being discussed in the context of a comprehensive reformto be implemented over the next couple of years (e.g., Pillar Two provisions, new Controlled Foreign Corporation rules, onshoring incentive and repeal of the Notional Interest Deduction), as well as through the approval process of the 2024 Budget Law (e.g., extension of participation exemption to European Union companies). EY Tax Alert 2023-1962 has details.

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Upcoming Webcasts

Domestic tax quarterly webcast series: A focus on state tax matters (December 6)
During this EY Webcast, Ernst & Young professionals will provide you with information on major tax law changes in the 50 states and District of Columbia, as well as current state and local tax topics of interest.

2023 employment tax year in review (December 7)
During this EY Webcast, Ernst & Young professionals will discuss the following common areas of year-end payroll and employment tax concern: (i) 2023 and 2024 federal and state tax rates and limits; (ii) Forms W-2/1099-NEC reporting changes; (iii) Payroll and employment tax insights for 2023; (iv) State unemployment insurance and the federal unemployment insurance credit reduction; (v) State payroll and employment tax developments; (vi) Hybrid employees and multistate income tax considerations; and (vii) Highlights from our 2023 payroll year-end checklist.

Proposed regulations under IRC Section 987: What you need to know (and do) now (December 8)
During this EY Webcast, Ernst & Young professionals will discuss the recently released proposed IRC Section 987 regulations, which provide new guidance on determining income and currency gain or loss with respect to a qualified business unit (QBU) that uses a different functional currency than its tax owner.

Accounting for income taxes: A quarterly perspective (December 12)
During this EY Webcast, Ernst & Young professionals will address developments and issues in accounting for income taxes.

Spotlight on BEPS 2.0: developments and practical implications for US MNEs (December 13)
Jurisdictions are enacting and proposing legislation implementing the Pillar Two rules developed under the Organisation for Economic Co-operation and Development/G20’s project on addressing the tax challenges of the digitization of the economy (BEPS 2.0). 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. Join this EY Webcast 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).

Tax in a time of transition: Legislative, economic, regulatory and IRS developments (December 15)
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.

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Recent Tax Alerts

Internal Revenue Service

— Dec 1: Proposed regulations on conservation contributions clarify when charitable contributions by partnerships and S corporations would be disallowed, increase reporting requirements (Tax Alert 2023-1976)

— Dec 1: QUEST Economic Update highlights key US and global economic trends - November 28, 2023 (Tax Alert 2023-1971)

— Nov 30: IRS reiterates that guidance may be coming on considering implicit support when pricing intercompany loans (Tax Alert 2023-1967)

— Nov 27: IRS updates FAQs on requiring QIs to solicit US TINs under IRC Section 1446 (Tax Alert 2023-1956)

— Nov 22: Digital services taxes and other taxes on the digital economy (November 2023) (Tax Alert 2023-1939)

— Nov 21: Proposed regulations on IRC Section 48 investment tax credit would update requirements for eligible energy property (Tax Alert 2023-1936)

— Nov 21: IRS rules on issues regarding assets and income from REIT's bulk liquid storage facilities (Tax Alert 2023-1931)

— Nov 21: IRS again delays $600 reporting threshold for third-party settlement organizations, plans on $5,000 threshold for 2024 (Tax Alert 2023-1929)

— Nov 21: IRS releases proposed regulations for donor-advised funds (Tax Alert 2023-1927)

International

— Dec 1: Canada's new reporting rules for digital platform operators take effect 1 January 2024 (Tax Alert 2023-1975)

— Dec 1: European Commission announces €4b funding call under the EU Innovation Fund for net-zero tech innovation projects (Tax Alert 2023-1973)

— Nov 30: Kuwait joins OECD/G20 Inclusive Framework on BEPS and considers introduction of Business Profits Tax (Tax Alert 2023-1970)

— Nov 30: Canada releases Federal Fall Economic Statement 2023 (Tax Alert 2023-1969)

— Nov 30: Kenya's enactment of new laws moves towards Universal Health Coverage (Tax Alert 2023-1968)

— Nov 27: South Africa introduces amendment to employee tax withholding requirement for non-resident employers (Tax Alert 2023-1965)

— Nov 27: Ghana issues Budget Statement and Economic Policy for the 2024 Financial Year (Tax Alert 2023-1964)

— Nov 27: UK Autumn Statement 2023 discussed (Tax Alert 2023-1963)

— Nov 27: Italy | Overview of recent tax developments including BEPS Pillar Two provisions (Tax Alert 2023-1962)

— Nov 27: OECD's 2022 mutual agreement procedure statistics show US decreasing MAP case inventories, increasing time to close (Tax Alert 2023-1960)

— Nov 27: Sweden delays implementation of changes to EU Blue Card regulations (Tax Alert 2023-1958)

— Nov 27: Hungary's immigration bill proposes new categories of work and residence permits (Tax Alert 2023-1953)

— Nov 27: Ireland's Department of Enterprise, Trade and Employment to stop accepting applications for Stamp 4 Support Letters (Tax Alert 2023-1952)

— Nov 27: Finland closes more border crossing points with Russia; one crossing point remains open (Tax Alert 2023-1951)

— Nov 27: Switzerland to retain quotas for Croatian nationals in 2024 (Tax Alert 2023-1950)

— Nov 27: UK announces business visitor visa reform in Autumn Statement 2023 (Tax Alert 2023-1949)

— Nov 22: Peru announces plans to introduce new Digital Nomad Visa (Tax Alert 2023-1946)

— Nov 22: UK announces tax measures for growth in Autumn Statement 2023 (Tax Alert 2023-1945)

— Nov 22: Colombian court annuls tax ruling disallowing FTC on interest income Colombian tax residents receive from nonresidents (Tax Alert 2023-1944)

— Nov 22: US Tax Court holds that non-US partnership was securities dealer engaged in US trade or business, liable for partnership withholding tax (Tax Alert 2023-1943)

— Nov 22: Uruguayan Government regulates tax measures affecting foreign IT professionals (Tax Alert 2023-1942)

— Nov 22: Bermuda government releases draft legislation for adoption of a 15% corporate income tax (Tax Alert 2023-1941)

— Nov 22: Kenya Revenue Authority unveils guidelines for customs clearance at port of entry for passengers (Tax Alert 2023-1938)

— Nov 22: Oman revamps visa policies to restrict work visa conversion and ban new visa issuance to Bangladeshi nationals (Tax Alert 2023-1937)

— Nov 21: Denmark's new domestic reverse-charge VAT rules apply beginning 1 January 2024 (Tax Alert 2023-1935)

— Nov 21: Saudi Arabia announces ninth wave of Phase 2 e-invoicing integration (Tax Alert 2023-1934)

— Nov 21: OECD holds Tax Certainty Day addressing MAP developments and updates on tax certainty efforts (Tax Alert 2023-1933)

— Nov 21: The Latest on BEPS and Beyond | November 2023 (Tax Alert 2023-1932)

— Nov 21: Finland closes four border crossing points with Russia (Tax Alert 2023-1928)

— Nov 20: Saudi Arabia approves new operating procedures of the General Secretariat of Zakat, Tax and Customs Committees (Tax Alert 2023-1925)

— Nov 20: Luxembourg updates draft legislation on implementation of the EU Minimum Tax Directive (Tax Alert 2023-1924)

— Nov 20: European Commission and Council release statements on BEPS 2.0 progress (Tax Alert 2023-1922)

— Nov 20: Kenya | Data Protection Commissioner decision clarifies employer's vicarious liability for employee's data breach (Tax Alert 2023-1921)

— Nov 20: Canada's new trust reporting requirements apply for first time to 2023 tax year (Tax Alert 2023-1920)

— Nov 17: Thailand implements changes to document requirements for Long-term Visa applications (Tax Alert 2023-1916)

Legislation

— Dec 1: Ways & Means approves Taiwan tax bill (Tax Alert 2023-1980)

— Nov 30: What to expect in Washington (November 29) (Tax Alert 2023-1974)

States

— Dec 1: California law allows employers to provide electronic employee notices for Earned Income Tax Credit, unemployment insurance (Tax Alert 2023-1978)

— Nov 30: Campbell County, Kentucky announces significant Occupational License Tax changes for 2024 (Tax Alert 2023-1972)

— Nov 27: Philadelphia offers guidance on the application of its wage tax to nonresident remote workers (Tax Alert 2023-1959)

— Nov 21: Wisconsin updates Internal Revenue Code conformity (Tax Alert 2023-1926)

— Nov 20: A FUTA credit reduction to apply in three jurisdictions in 2023; New York lowers its employer interest assessment (Tax Alert 2023-1919)

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Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

— Voters in various states weigh-in on various tax-related ballot measures. On Nov. 7, 2023, voters in a handful of state and local jurisdictions voted to approve or to reject various tax-related ballot measures. Below is a summary of select measures.

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

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IRS Weekly Wrap-Up

Proposed Regulations

 REG-112916-23Statutory Disallowance of Deductions for Certain Qualified Conservation Contributions Made by Partnerships and S Corporations
 REG-132569-17Definition of Energy Property and Rules Applicable to the Energy Credit
 REG-131756-11Transactions Between Related Persons and Partnerships
 REG-104194-23Long-Term, Part-Time Employee Rules for Cash or Deferred Arrangements Under Section 401(k)

Corrections

 TD 9981Requirements for Type I and Type III Supporting Organizations; Correction
 TD 9982User Fees Relating to Enrolled Actuaries; Correction

Revenue Procedures

 2023-37This revenue procedure sets forth the rules regarding Qualified Preapproved Plans and Section 403(b) Pre-approved Plans, and combines, conforms, clarifies, and updates rules for Qualified Pre-approved Plans and Section 403(b) Preapproved Plans previously set forth in prior revenue procedures, as described in section 1.01(1) through (3).1
 2023-38Submission of information to IRS by qualified manufacturers of clean vehicles, previously-owned clean vehicles, and commercial clean vehicles

Revenue Rulings

 2023-22Section 6621 - Determination of Rate of Interest

Notices

 2023-74Revised timeline regarding implementation of amended Section 6050W(e)

Internal Revenue Bulletin

 2023-48Internal Revenue Bulletin of November 27, 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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