- Notice 2016-76 delays the effective date of certain provisions of the section 871(m) regulations, and also makes changes to the qualified derivatives dealer (QDD) rules, including a one-year extension of the qualified securities lender (QSL) rules.
- Final regulations address the tax treatment of transfers by U.S. persons of property—including goodwill and going-concern value—to foreign corporations in nonrecognition transactions pursuant to section 367.
- Final regulations were issued concerning the “premium tax credit” related to health insurance.
- The IRS announced a reduction in the standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes in 2017.
- The Ninth Circuit concluded that a federal district court lacked jurisdiction to hear a Native American (Indian) tribe’s claims concerning the imposition of the federal excise tax on tobacco products manufactured by an Indian-owned tobacco company.
- Final regulations treat a domestic disregarded entity, wholly owned by a foreign person, as a domestic corporation for the limited purposes of the reporting and recordkeeping requirements under section 6038A.
- The IRS issued guidance concerning the low-income housing credit under section 42.
- The Alabama Tax Tribunal rejected a taxpayer’s attempt to base its domestic production activities deduction limitation on Alabama taxable income, but concluded the domestic production activities deduction limitation was to be based on federal taxable income.
- The Alaska Office of Administrative Hearings determined that federal “look-back” interest applies—i.e., interest that needs to be paid by a taxpayer or refunded to a taxpayer as the result of income from a long-term contract that has been reported on prior year tax returns using the percentage of completion method—but at a rate of interest under Alaska law.
- Oregon's governor announced a fiscal year 2017-2019 executive budget that includes certain revenue and tax proposals to address the state’s estimated $1.7 billion shortfall. Separately, the City of Portland approved a new pay-ratio surtax.
- A Pennsylvania Commonwealth Court concluded that purifying and distilling water was not manufacturing for purposes of the exemption from the sales and use tax.
Read TaxNewsFlash-United States
- Congress adjourned without acting to extend the almost 30 temporary tax incentives that generally will expire at the end of 2016. These incentives will not be available with respect to 2017 activity unless the next Congress acts to extend them.
- In a speech on the Senate floor shortly before the Senate adjourned, Senator Orrin Hatch (R-UT), the Chairman of the Senate Finance Committee, discussed tax reform and his efforts to develop a proposal to better integrate the corporate and individual tax systems.
Read TaxNewsFlash-Legislative Updates