- Announcement 2020-12 clarifies that lenders that make Paycheck Protection Program (PPP) loans that are later forgiven under the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) should not file information returns or furnish payee statements to report the amount of qualifying forgiveness.
- The U.S. Treasury Department's Community Development Financial Institutions (CDFI) fund announced the “notice of allocation availability” for the calendar year 2020 allocation of the New Markets Tax Credit (NMTC) program. The NMTC allocation for the 2020 round is set at $5 billion in tax credit allocation authority.
- Taxpayers in Alabama affected by Hurricane Sally will have until January 15, 2021, to file individual and business tax returns and to make certain tax payments.
- Final and proposed regulations were published in the Federal Register concerning the repeal of section 958(b)(4). A KPMG report provides an overview of the regulations.
- A version of final and temporary regulations was posted on the IRS website as guidance concerning the amount of gain or loss treated as effectively connected with the conduct of a trade or business within the United States—“effectively connected gain” or “effectively connected loss”—under section 864(c)(8).
- A version of final regulations posted on the IRS website concerns the additional first year depreciation deduction under section 168(k).
- The IRS posted on its website a version of final regulations clarifying that certain deductions allowed to an estate or non-grantor trust are not miscellaneous itemized deductions. The final regulations also provide guidance on determining the character, amount, and allocation of deductions in excess of gross income succeeded to by a beneficiary on the termination of an estate or non-grantor trust.
- OMB’s Office of Information and Regulatory Affairs (OIRA) received for review final regulations concerning consolidated net operating losses (NOLs).
- OIRA completed its review of final and proposed regulations concerning the foreign tax credit provisions enacted by the 2017 U.S. tax law. Treasury and the IRS can now be expected to release these final and proposed regulations for publication in the Federal Register—the exact date of publication not being known.
State and local tax
- In several states— Colorado, Illinois, Mississippi, and Tennessee—tax measures address the sales tax obligations for remote sales and transactions involving marketplace facilitators.
- Tax authorities in California, Massachusetts, and Rhode Island released or updated guidance to provide tax relief in response to the COVID-19 pandemic.
- Oregon’s tax court held that the motor vehicle use tax applied to purchases of vehicles by a rental car company. While Oregon does not impose a “traditional” sales and use tax, the motor vehicle use tax is imposed on the use in Oregon of motor vehicles purchased at retail.
- The Pennsylvania Department of Revenue updated guidance concerning an economic nexus standard for corporate net income tax purposes. Interest and other intangible receipts have been added to the list of types of receipts that count towards the $500,000 economic nexus threshold. The revised guidance also addresses the application of the economic nexus standard to corporate partners.
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