- Proposed regulations relating to application of the domestic production activities deduction for specified agricultural or horticultural cooperatives are pending OMB (OIRA) review.
- Rev. Proc. 2019-17 concerns the general public use requirements for qualified residential rental projects financed with tax-exempt bonds under section 142(d).
- Concerning the Craft Beverage Modernization and Tax Reform Act of 2017 (CBMA) provisions that provide reduced tax rates or allow tax credits with respect to certain alcoholic beverages, U.S. Customs and Border Protection issued guidance describing the procedures and requirements for implementing these tax measures.
- The U.S. Court of Appeals for the Second Circuit, in a case of “first impression,” reversed and remanded a decision to the U.S. Tax Court with regard to the Tax Court’s jurisdiction concerning overpayments of tax pursuant to section 6512(b)(3). The taxpayer had been granted a six-month extension of time to file an income tax return, but did not file a tax return before the IRS mailed a notice of deficiency. The Second Circuit held the taxpayer was to be allowed a “look-back” period of three years under section 6512(b)(3) (and not a look-back of two years).
- Taxpayers making advance pricing agreement (APA) submissions may be asked to use the new “functional cost diagnostic model"—a taxpayer information data analytics tool.
- A KPMG report examines certain provisions in the U.S. tax law (Pub. L. No. 115-97) concerning tax accounting and compensation and benefits.
- More states—California, Kentucky, New York, North Dakota, and Virginia—responded to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. (state sales tax implications of remote or online sales).
- In Kentucky, a FAQ indicates that the bright-line sales and use tax economic nexus thresholds (sales of 200 or more sales or sales of $100,000) do not apply to Kentucky’s corporate income tax or limited liability entity tax. A company that has any amount of sales, property, or payroll in Kentucky must file a corporate income tax or limited liability entity tax return.
- The Oregon Tax Court determined that legislation to decouple from the section 199A deduction for qualified business income did not require a supermajority vote. The tax court reasoned that the legislation did not “levy a tax” but instead merely changed the tax base of an already existing tax. Therefore, the legislation was not subject to the three-fifths majority vote requirement.
- A Tennessee appeals court concluded that the Department of Revenue had improperly reclassified a taxpayer’s business activities for purposes of the state business tax. The court rejected the state’s determination that all sales of the tangible personal property sold (plus the labor charges for installing the property) were to be treated as service receipts given that most of the taxpayer’s gross receipts were attributable to the sale of property.
Read TaxNewsFlash-United States
- The U.S. House of Representative’s Ways and Means Committee approved two bipartisan tax bills for consideration by the full House.
- H.R. 1994, Setting Every Community Up for Retirement Enhancement Act (SECURE) of 2019
- H.R. 1957, Taxpayer First Act of 2019
Read TaxNewsFlash-Legislative Updates