The IRS on 5 March issued proposed regulations (REG-108921-25) that would remove final regulations that identify certain partnership related-party basis adjustment transactions as "transactions of interest" (TOI), which taxpayers and material advisors must report.

The final regulations (TD 10028), released on 10 January 2025, were considered broad enough that complying with them represented a very significant undertaking for many partnerships, partners and advisors. The final regulations were also seen as likely to apply to many routine and non-tax-motivated transactions.

The proposed removal would be retroactive, effective to 14 January 2025, the date the TOI regulations became effective. A Tax Alert is forthcoming.

The IRS on 5 March issued proposed regulations (REG-105064-25) to make it easier for digital asset brokers to provide 1099-DA statements to customers electronically, rather than sending paper copies.

More specifically, the proposed regulations under IRC Section 6045 would provide digital asset brokers with an alternative process for obtaining consent from their customers to receive 1099-DA statements in an electronic format without offering a paper alternative. The IRS also issued Notice 2026-4 requesting comments on the issues involved with furnishing 1099-B statements and other payee statements electronically. A Tax Alert is forthcoming.

The IRS has indicated that it may, in certain instances, waive the electronic filing requirement for 2025 for both US and foreign withholding agents to file Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons. The waiver will be considered "if the withholding agent demonstrates that a hardship would result if it were required to file its return electronically."

The deadline for withholding agents to submit a waiver request is 15 March or 45 days before the due date of the return (if the filing is under an extension).

In trade news, US Customs and Border Protection (CBP) this week outlined potential tariff refund and liquidation mechanics, following a recent Court of International Trade (CIT) order on International Emergency Economic Powers Act (IEEPA) duties. The CIT ordered CBP to liquidate and, where applicable, reliquidate certain import entries without regard to duties imposed under the IEEPA. The order followed the US Supreme Court's recent decision in Learning Resources, which held the IEEPA-based duties were unlawful. A Global Tax Alert on the CIT's order to CBP is available here.

In a sworn declaration submitted to the CIT today (6 March), CBP has proposed new Automated Commercial Environment (ACE) functionality and an associated process flow that could work to address the operational challenges associated with the IEEPA duty refund process. CBP told the CIT it aims to have new ACE functionality completed in approximately 45 days. A Global Tax Alert on the CBP's proposal has details here.

On 2 March, the US Court of Appeals for the Federal Circuit rejected the federal government's bid to delay tariff refund proceedings by up to 120 days.

US Treasury Secretary Scott Bessent said on 4 March that President Trump's recently announced 10% global tariffs would be increased to 15% during the first week of March. The temporary 10% tariffs were imposed under Section 122 of the Trade Act of 1974 but may only apply for 150 days and will expire on 24 July 2026.

The Administration reportedly has begun trade investigations that could be used to implement permanent tariffs under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962.