- Notice 2019-34 sets forth the maximum fair market value of a vehicle for 2019 that can use the fleet-average and vehicle cents-per-mile special valuation rules used to determine the value of an employee’s personal use of an employer-provided vehicle for income and employment tax purposes. The notice reports that future proposed regulations are being planned.
- The European Union in comments submitted concerning the proposed regulations released in March 2019 relating to the deduction for “foreign-derived intangible income” (FDII) and “global intangible low-taxed income” (GILTI) under section 250 alleged the FDII regime violated the U.S. obligations under certain international agreements.
- Proposed regulations address tax withholding and information reporting requirements with respect to certain dispositions of interests in partnerships engaged in the conduct of a trade or business within the United States. The proposed regulations would implement measures under the 2017 tax law and would affect certain foreign persons that recognize gain or loss from the sale or exchange of an interest in a partnership that is engaged in the conduct of a trade or business within the United States, as well as persons that acquire those interests, and also would affect partnerships that have foreign persons as partners.
- Notice 2019-33 provides guidance for public utilities and specifically the normalization requirements for excess tax reserves that result from the reduction of the corporate tax rate by the 2017 tax law. The notice also announces that Treasury and the IRS intend to issue guidance to clarify the rules under section 168 for public utilities.
- Rev. Proc. 2019-22 provides that a private school may use an Internet website to publicize the school’s racially nondiscriminatory policy as to students.
- The IRS again reminded taxpayers that effective 13 May 2019, only individuals with tax identification numbers may request an employer identification number (EIN) as the “responsible party” on the Form SS-4 application.
- The U.S. Court of Appeals for the Third Circuit affirmed that for the years at issue (2007 and 2008), a U.S. shareholder of two controlled foreign corporations (CFCs) that in turn had guaranteed loans made to a U.S. person must include in its gross income the CFCs' applicable earnings and that the amount included in gross income is subject to tax as ordinary income.
- The U.S. Court of Appeals for the Eleventh Circuit affirmed the disallowance of losses claimed by the taxpayer with regard to S corporation indebtedness because of a lack of basis.
- As noted in a KPMG report, changes made by the 2017 tax law render the common law test for determining whether an individual is an employee or independent contractor relevant to the application of a variety of new tax paradigms including sections 199A and 4960 as well as extension of the U.S. rules to the calculation of GILTI under section 951A.
- Indiana’s governor signed tax legislation that includes changes to the nexus requirements under the state’s corporate income tax laws and that requires marketplaces and marketplace facilitators to collect sales and use tax.
- State lawmakers in Georgia, South Carolina, and Tennessee considered or passed economic nexus legislation that reflects the conclusion of the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. (state sales tax implications of remote or online sales).
- A new tax law in Oklahoma enacts a tax that can be imposed on passthrough entities (as defined by federal tax law) for tax years beginning on or after 1 January 2019.
- The Pennsylvania Department of Revenue issued guidance and examples illustrating how to compute for Pennsylvania corporate net income tax purposes the IRC section 163(j) limitation on deductible interest expenses.
- OMB’s Office of Information and Regulatory Affairs (OIRA) completed review of proposed regulations under section 897(l) with respect to qualified foreign pension fund requirements, and also received for review final regulations concerning health reimbursement arrangements.
Read TaxNewsFlash-United States
- The U.S. House Ways and Means Committee this week held a hearing on the tax gap. Next week, the Senate Finance Committee has scheduled a hearing on challenges in the retirement system.
Read TaxNewsFlash-Legislative Updates