Tax Update

Tax Update

In this section, we provide a summary of brief updates from the previous quarter on legislative, judicial, and administrative developments in tax that may impact Japanese companies operating in the United States.

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IRS updates FAQs on employee retention credit, interaction with PPP relief (COVID-19)

November 16, 2020

The IRS today updated a set of "frequently asked questions" (FAQs) about the employee retention credit (ERC) as provided by the "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act) (Pub. L. No. 116-136).

TaxNewsFlash No. 2020-702 (PDF)

California: San Francisco business tax overhaul measure (and others) approved by voters

November 12, 2020

San Francisco voters on November 3, 2020, approved three ballot measures that may affect business taxpayers.

TaxNewsFlash No. 2020-697 (PDF)

Final regulations released to Federal Register: Additional first year depreciation deduction under section 168(k)

November 5, 2020 

The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register final regulations (T.D. 9916) regarding the additional first year depreciation deduction under section 168(k).

TaxNewsFlash No. 2020-685 (PDF)

Correcting amendments to final regulations, FDII and GILTI

November 2, 2020 

Correcting amendments from the U.S. Treasury Department and IRS published in the Federal Register on October 28, 2020, make changes to final regulations governing the deduction for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI). A second set of correcting amendments (released for publication in the Federal Register on November 2, 2020) reflects changes to the language in the preamble to the final regulations to be consistent with changes made in the October 2020 correcting amendments.

TaxNewsFlash No. 2020-674 (PDF)

Final regulations on consolidated NOLs, inclusive of insurance company regulations

October 21, 2020 

The IRS on October 13, 2020, posted to its website a version of final regulations (T.D. 9927) under sections 172 and 1502 as guidance relating to the absorption of consolidated net operating loss (NOL) carryovers and carrybacks.

TaxNewsFlash No. 2020-661 (PDF)

Final regulations released to Federal Register: BEAT provisions under section 59A

October 8, 2020 

The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9910) as guidance regarding the base erosion and anti-abuse tax (BEAT) imposed on certain large corporate taxpayers with respect to certain payments made to foreign related parties.

TaxNewsFlash No. 2020-633 (PDF)

Initial impressions of final and proposed foreign tax credit regulations

October 5, 2020 

The IRS and U.S. Treasury Department on September 29, 2020, released an unofficial advance version of final regulations related to the determination of the foreign tax credit ("FTC") ahead of their being published by the Federal Register.

Initial impressions of final and proposed foreign tax credit regulations (PDF)

Final regulations on deductibility of meal and entertainment expenses (initial impressions)

October 2, 2020 

The IRS on September 29, 2020, posted on its website a version of final regulations (T.D. 9925) providing guidance under section 274 regarding changes made to section 274 by the U.S. tax law enacted in 2017 limiting the deductibility of meal and entertainment expenses.

TaxNewsFlash No. 2020-620 (PDF)

Final regulations: Federal income tax withholding from employees' wages

October 1, 2020 

The IRS today posted on its website a version of final regulations (T.D. 9924) as guidance for employers concerning the amount of federal income tax that employers withhold from employees' wages.

TaxNewsFlash No. 2020-615 (PDF)

Final regulations: Income tax withholding, periodic retirement and annuity payments

September 28, 2020 

The IRS this afternoon posted on its website a version of final regulations (T.D. 9920) concerning federal income tax withholding on certain periodic retirement and annuity payments.

TaxNewsFlash No. 2020-607 (PDF)

Accounting for income taxes considerations of final regulations

September 28, 2020

In light of the significant volume of recently issued Treasury regulations, there are some accounting for income taxes considerations for the issuance of final regulations that should be kept in mind when evaluating new regulations.

Accounting for Income Taxes Considerations of Final Regulations (PDF)

Final and proposed regulations: Relief concerning repeal of section 958(b)(4)

September 22, 2020 

Regulations from the U.S. Treasury Department and IRS are published in today's edition of the Federal Register. The final regulations (T.D. 9908) and a related notice of proposed rulemaking (REG-110059-20) concern the repeal of section 958(b)(4).

TaxNewsFlash No. 2020-593 (PDF)

Highlights of final BEAT regulations under section 59A

September 3, 2020

The IRS on September 1, 2020, posted on its website final regulations (T.D. 9910) regarding the section 59A base erosion and anti-abuse tax (BEAT) which applies to payments made by certain large corporate taxpayers to foreign related parties.

Highlights of final BEAT regulations under section 59A (PDF)

IRS provides tax relief to taxpayers affected by Hurricane Laura

August 31, 2020 

The IRS today announced the availability of tax relief for taxpayers affected by Hurricane Laura.

TaxNewsFlash No. 2020-545 (PDF)

Initial analysis of Notice 2020-65, guidance on employee payroll tax deferral

August 31, 2020 

The IRS and Treasury Department late on Friday, August 28, 2020, released an advance version of Notice 2020-65 providing guidance on an employee payroll tax deferral as directed by President Trump's August 8 memorandum.

TaxNewsFlash No. 2020-542 (PDF)

For more information, please contact:

Tai Kimura | +1 408 367 2204 | tkimura@kpmg.com

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


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The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. This article represents the views of the authors only, and do not necessarily represent the views or professional advice of KPMG.

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