- The U.S. Treasury Department publicly released a final report with recommendations for specific actions with respect to eight regulatory projects that were identified as either imposing an undue financial burden on taxpayers, or adding excessive complexity to the tax system. Certain regulations are to be withdrawn, while others will be modified.
- Final regulations and related IRS guidance were released for use by most defined benefit pension plans, by specifying the probability of survival year-by-year for an individual based on age, gender, and other factors.
- Delaware plans to invite numerous companies that have been identified as potentially non-compliant with Delaware’s unclaimed property reporting requirements to participate in the state’s unclaimed property voluntary disclosure agreement (VDA) program.
- IRS Notice 2017-57 announces that a deferred effective date for regulations (issued in late 2016) under section 987 concerning currency gains and losses with respect to the operations of a “qualified business unit” (QBU) with a different functional currency than the taxpayer.
- The U.S. Tax Court issued an opinion holding that unemployment compensation received by a nonresident alien (a graduate student) was not exempt from U.S. income tax under a provision of the income tax treaty between the United States and Canada.
- An Alabama appeals court held that a city’s business license-tax, as applied to receipts from a taxpayer’s lumber sales, did not violate the Import-Export Clause of the U.S. Constitution, when the gross revenues from export sales were used in calculating the business-license tax liability.
- An Illinois appeals court held that an internet retailer with “bricks and mortar” affiliates (stores) in Illinois did not have nexus with the state and, thus, was not required to collect and remit sales tax on internet sales to Illinois customers. The court found that the physical presence of the retail stores could not be attributed to the internet retailer, given the two businesses were separate entities with separate financial statements, balance sheets, and tax returns.
- A New York tax appeals tribunal upheld a determination of an administrative law judge that certain related corporations were required to file a combined report for the tax years 2007 through 2014, and that intercompany royalties were subject to addback in determining substantial intercorporate transactions.
- The Wisconsin budget bill (recently signed into law) includes corporate income tax changes concerning IRC conformity, the treatment of net operating losses, and sourcing rules for service receipts, among others.
Guidance in relation to the recent hurricanes
- IRS Notice 2017-56 extends the “physical presence” test and, thus, provides relief for individuals who may otherwise lose their status as a “bona fide resident” of Puerto Rico or the U.S. Virgin Islands because of the unexpected and prolonged dislocation caused by Hurricane Irma and Hurricane Maria.
- The U.S. Securities and Exchange Commission (SEC) issued an order and interim final temporary rule that extend filing deadlines for companies affected by Hurricanes Harvey, Irma, and Maria.
- IRS Notice 2017-58 extends the due date to 31 October 2017 for taxpayers who were participants in certain “syndicated conservation easement transactions” by providing more time to file disclosures if these taxpayers were affected by recent hurricanes.
- The Puerto Rico Department of Treasury issued a series of internal revenue bulletins and circular letters with information about issues and pending tax return or tax payment deadlines as part of its hurricane-related relief measures.
Read TaxNewsFlash-United States
U.S. tax reform
- A KPMG report about the tax reform framework provides a high-level summary of certain significant proposed changes that would affect states and/or state business taxpayers.
- A KPMG report summarizes key provisions and initial observations of the potential effects of the tax reform framework on banks and their customers.
Read TaxNewsFlash-Tax Reform