The Ernst & Young ITTS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition:  US Congress fails to pass infrastructure and budget reconciliation legislation -- House Ways & Means Committee reports out reconciliation bill with major international tax proposals -- Senate Finance Committee Chairman releases partnership tax proposals -- Final foreign tax credit regulations will include jurisdictional nexus requirement -- IRS allows taxpayer to reverse GILTI "gap period" transaction through late CTB election -- IRS articulates five-factor test in determining income inclusion of reimbursement payments -- IRS issues final regulations on treatment of QIP and provides guidance on foreign tax credits -- IRS seeing more billion-dollar MAP cases -- IRS lists jurisdictions with US information exchange agreements that allow reporting certain deposit interest -- G7 Finance Ministers make progress on BEPS 2.0 issues in lead-up to October 2021 meetings.

Ernst & Young ITS Washington Dispatch

EY ITTS Washington Dispatch, September 2021

The Ernst & Young ITTS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: US infrastructure legislation, FY 2022 budget resolution move forward – Senate Finance Committee Chairman, members release international tax discussion draft – Finance Committee Chairman introduces bill to amend tax treatment of financial derivative transactions – Senate-passed infrastructure bill would impose information-reporting requirements on sales of cryptocurrency, other digital assets – IRS extends to 1 January 2023 date for W/H on certain transfers, distributions related to PTP interests – US, Germany agree on exchange of CbC reports – IRS financial services campaign will not target specific transactions – OECD releases 2021 peer review update of preferential tax regimes – OECD releases corporate tax statistics publication, including anonymized/aggregated CbC report stats.

EY ITTS Washington Dispatch, August 2021

The Ernst & Young ITTS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: White House, Senate negotiators reach agreement on $1.2 trillion infrastructure package – OECD announces conceptual agreement in BEPS 2.0 project; endorsed by G20 Finance Ministers, Central Bank Governors – US, UK competent authorities sign agreements re treaty LOB provision – IRS memo addresses CSA and inclusion of stock-based compensation costs – US Treasury official provides international tax regulatory update.

EY ITTS Washington Dispatch, July 2021

The Ernst & Young ITTS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: Bipartisan infrastructure deal reached, but road to passage uncertain – House passes corporate disclosure package requiring CbC tax reporting for multinationals – Biden Administration’s proposed 15% minimum tax could come with requirement to disclose book-tax differences – IRS announces plans to amend BEAT regarding qualified derivative payment reporting – G7 Finance Ministers express strong support for global tax changes under BEPS 2.0 – OECD publishes model rules for information exchange for digital platforms.

EY ITTS Washington Dispatch, June 2021

The Ernst & Young ITTS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: US Treasury ‘Green Book’ offers new details on international tax proposals – Senate hearing discusses Biden Administration’s international tax proposals – House bill would require SEC regulations on CbC financial information disclosure, including taxes – US proposes 15% global corporate minimum tax to BEPS 2.0 Steering Group – President Biden proposes increased IRS budget to improve tax compliance – IRS modifies guidance on accounting method changes for certain foreign corporations – IRS official comments on treaty derivative benefits post-Brexit – US Government releases early drafts of 2021 Schedules K-2 and K-3 for Forms 1065, 1120-S and 8865 – Parties to OECD MLI release interpretative guidance. .

EY ITTS Washington Dispatch, May 2021

The Ernst & Young ITTS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: US Treasury releases President’s plan to overhaul corporate tax system – US Senators release proposed International Tax Framework – President Biden lays out $1.8 trillion American Families Plan proposal – Senate Finance Committee chairman reintroduces clean energy legislation – Treasury Secretary proffers BEPS 2.0 Pillar One proposal to Inclusive Framework – IRS issues proposed regs to coordinate WHT, gain deferral for certain foreign persons and partnerships investing in Qualified Opportunity Funds – IRS releases FAQs on ICAP program for US multinationals – PTEP guidance not expected until early fall – US, Japan reach agreement on tax treaty arbitration process – OECD releases consultation document with proposed changes to Commentaries to OECD Model Tax Convention on Article 9 (Associated Enterprises) – OECD publishes Arbitration Profiles for 30 countries under MLI – IMF and OECD release joint report on carbon pricing – UN tax committee approves new digital taxation article for UN model tax treaty – UN releases new Transfer Pricing Manual.

EY ITTS Washington Dispatch, April 2021

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: President Biden lays out $2 trillion + infrastructure plan to be paid for with tax increases – Senate Finance Committee holds international tax hearing – Congressional Democrats introduce international tax legislation – President Biden signs $1.9 trillion American Rescue Plan Act of 2021 – US, Japan reach agreement on tax treaty arbitration process – IRS opens initiative on virtual currency – IRS APMA program director discusses taxpayers’ treatment of COVID-related costs – IRS APMA Program releases annual APA update – OECD official floats BEPS 2.0 Pillar Two simplification – OECD publishes jurisdictions currently participating in International Compliance Assurance Programme.

EY ITS Washington Dispatch, March 2021

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: Congress poised to enact $1.9t COVID relief bill with repeal of worldwide interest expense allocation – Treasury to consider reviving expired transfer pricing aggregation regulations – IRS continues APA/MAP case closures despite COVID restrictions – OECD FTA releases new handbook for ICAP – OECD holds public consultation on review of BEPS Action 14 minimum standard on dispute resolution – OECD releases 10th batch of peer review reports on BEPS Action 14.

EY ITS Washington Dispatch, February 2021

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: US Treasury Secretary says no new taxes for now, commits to OECD BEPS discussions – New final regulations address application of Section 163(j) limitation to CFCs and partnerships, reserve on certain provisions – IRS allows remote signing / submission of authorization Forms 2848 and 8821 – IRS official says guidance on worldwide interest expense allocation a top priority, proposed FTC regs in 2021 – USTR finds DSTs adopted by six nations discriminatory; suspends DST-related punitive tariff actions on French goods – OECD IF political leaders promote global consensus following OECD public consultation on Pillar One / Two Blueprints – OECD Secretariat issues updated guidance on tax treaties re impact of COVID-19 pandemic.

EY ITS Washington Dispatch, January 2021

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: US Congress passes coronavirus stimulus and omnibus spending package, including extension of CFC look-through – IRS issues final and proposed PFIC regulations – Treasury to focus on other international projects, tax treaties as TCJA guidance nears completion – Treasury’s FinCEN further extends certain FBAR signature authority reporting over foreign financial accounts – IRS will continue ICAP joint risk assessment initiative – US transfer pricing enforcement remains priority while TCJA provisions may negate adjustments – IRS APMA seeing more queries on transfer pricing consequences of coronavirus pandemic – BEPS 2.0 Pillar One and Two comment period closes; public consultation set for 14-15 January 2021 – OECD issues guidance on transfer pricing implications of COVID-19, hard-to-value intangibles – OECD releases fourth peer review report on BEPS Action 5 on Exchange of Information of Tax Rulings – OECD’s FTA hosts virtual meeting of tax administration leaders.

EY ITS Washington Dispatch, December 2020

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: Major policy changes expected following US November election – Treasury and IRS finalize regulations to reduce double taxation caused by anti-abuse rules on GILTI gap period – IRS officials provide international regulatory update – US, Mexico renew competent authority agreement on unilateral APAs for maquiladoras – IRS updates list of jurisdictions for automatic exchange of CbC reports – IRS reviewing stock-based compensation in cost-sharing context – OECD to hold virtual public consultation on BEPS 2.0 Pillar 1 and Pillar 2 in mid-January 2021 – OECD releases Consultation Document on 2020 review of BEPS Action 14 – OECD releases 2019 mutual agreement procedure statistics, 2019 mutual agreement procedure awards –  OECD releases report on taxing virtual currencies.

EY ITS Washington Dispatch, November 2020

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: OECD releases BEPS 2.0 Pillar 1 and Pillar 2 blueprints, invites public comments – UN releases new proposed treaty article on digital taxes – Final rules under Section 1446(f) address W/H on transfers of partnership interests – IRS concludes Section 704(c) anti-abuse rule triggered in asset contribution to foreign partnership – IRS confirms some modifications to debt instruments, other contracts to reflect LIBOR discontinuation will not result in deemed taxable exchange – IRS ‘practice unit’ offers exam guidance on inclusion of stock-based compensation in CSAs – IRS to limit use of ‘telescoping’ in APA and MAP cases – IRS will consider amending existing APAs to reflect COVID-19 economic conditions.

EY ITS Washington Dispatch, October 2020

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: Final BEAT regulations adopt proposed BEAT guidance with some changes − New final and newly proposed foreign tax credit regulations released − Treasury issues final sourcing regulations on sales of personal property (including inventory) − IRS releases final and proposed regulations re repeal of Section 958(b)(4) − IRS issues final regs on characterization of foreign persons’ gain or loss from sale / exchange of interests in partnerships engaged in US trade or business − Final Section 163(j) regulations generally applicable tax years on / after 13 November 2020 − IRS delays certain Section 987 FX regulations for additional year − Notice 2020-69 provides rules on entity treatment election for certain S corporations re GILTI in AAA inclusions − Final BEPS 2.0 Pillar 1 and 2 blueprints to be published 12 October 2020 − OECD releases third phase of peer reviews on BEPS Action 13.

EY ITS Washington Dispatch, September 2020

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: IRS finalizes Section 245A DRD anti-abuse regulations with few changes – Treasury and IRS propose complex, taxpayer-favorable regulations to reduce possibility of double taxation caused by anti-abuse rules during GILTI gap period – US, Swiss competent authorities reach agreement on treaty arbitration process – UN Tax Committee issues proposal for taxing digital services income.

EY ITS Washington Dispatch, August 2020

The Ernst & Young ITS Washington Dispatch brings you a monthly review of US international tax-related developments. In this edition: IRS issues final and proposed interest expense limitation regulations – Final and proposed GILTI regulations deliver few benefits, some surprises – IRS releases final regulations under Section 250 for computing FDII and GILTI deduction – IRS releases new draft partnership Schedules K-2 and K-3 for international tax reporting – US announces action against France’s DST – G20 Finance Ministers / Central Bank Governors reiterate commitment to BEPS 2.0 pillars – OECD releases new corporate tax data including CbCR statistics – OECD issues model rules for data reporting by platform operators for sellers in sharing / gig economy.  

EY ITS Washington Dispatch, July 2020

The Ernst & Young ITS Washington Dispatch brings you the latest developments in US tax news.