Full Expensing Regulations Ready for Publication
Posted on Jul 31, 2018 in Tax Accounting, Uncategorized
On July 30, 2018, the Office of Management and Budget (“OMB”) waived its review of the Internal Revenue Service’s (“IRS”) proposed regulations that implement the full expensing provisions of the 2017 tax act. The full expensing provisions allow temporary 100% expensing for certain business assets. With the OMB review complete, the IRS may publish the proposed regulations in the Federal...
Tax Reform 2.0 Outline Released with Three Main Themes
Posted on Jul 25, 2018 in Employee Benefits, Individual Taxation
House Ways and Means Committee Chairman Kevin Brady recently released an outline of the planned tax reform 2.0 legislation. The tax package will focus on making the individual and small business tax cuts permanent; promoting family savings through retirement and section 529 education savings programs; and encouraging the creation and development of new businesses. The legislation will...
OMB’s Review of 199A Regulations to Be Completed in Ten days
Posted on Jul 25, 2018 in News, Pass-through Taxation
Last week, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) received draft proposed computational section 199A regulations from Treasury. OIRA’s expedited deadline for this review is ten business days after receipt of all necessary information, subject to extension as agreed with Treasury. Guidance sent to OIRA is generally subject to a 45-day...
Nunes’s Proposed Legislation Would Consider Inflation in Determining Capital Gains Tax
Posted on Jul 23, 2018 in Individual Taxation, News
Devin Nunes, a Republican member of the House Ways and Means Committee, has introduced legislation to index capital gains for inflation. Under Nunes’s legislation, the tax basis of a capital asset for purposes of calculating capital gains would be adjusted for inflation. Republican Senator Ted Cruz has introduced similar legislation in the Senate, and Congressional Republicans are...
The Tax Cuts and Jobs Act Could Impact Intangible Valuation
Thomas Amendolari, a senior economist at the Treasury Department, recently stated that many of the fundamental aspects of determining the discount rate, for purposes of valuing intangible transfers under the section 482 regulations, may be affected by the 2017 TCJA. While the economic effects of the TCJA may increase discount rates, Amendolari noted that it is not yet certain and...Tax Law Discourages U.S. Investment and Leaves Taxpayers in the Dark, According to New Report from Senate Finance Democrats
Posted on Jul 19, 2018 in News
A recent report released by the Senate Finance Committee ranking member Ron Wyden asserts that the new tax legislation has resulted in “more complexity, loopholes and incentives to ship jobs overseas.” According to the report, the global intangible low taxed income (“GILTI”) provisions create a new web of complexity and leave taxpayers in the dark regarding future investment decisions....
David Kautter Announces that Guidance on the Section 199A Pass-through Deduction will be Released in Weeks
On July 17, 2018, David Kautter, the acting Commissioner of the Internal Revenue Service (“IRS”), announced that the Treasury Department is currently reviewing guidance under section 199A and anticipates the guidance to be released within weeks. Kautter further stated that the IRS is treating the section 199A deduction, the section 59A base erosion and anti-abuse tax (“BEAT”), and the...Brady Announces that the Outline of Phase 2 of Tax Reform will be Released Next Week
Posted on Jul 18, 2018 in Individual Taxation, News
Kevin Brady, Chairman of the House Ways and Means Committee, announced on July 18, 2018 that an outline of the “phase 2” tax reform legislation will be released during the week of July 23rd. Brady also stated that the phase 2 legislation will not include any technical corrections or refinements to the 2017 tax act and that the focus of the legislation will be to make permanent the...
The Office of Management and Budget Received Draft Transition Tax Regulations
Posted on Jul 17, 2018 in International Tax, News
On July 13, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) acknowledged receipt on its website of proposed rules under section 965. The rules are currently under review, but OIRA has indicated that they are not economically significant, and therefore the normal 45-day review timeline (subject to extension) applies. Read more: Transition Tax...
Tax Reform 2.0 Not Expected to Address International Provisions
According to Republican Congressman Carlos Curbelo, tax reform 2.0 will not address international tax provisions, such as BEAT or GILTI. Instead, the next round of tax legislation is projected to focus on making the individual provisions permanent. The excluded provisions are expected to be addressed in a future, separate technical corrections bill. Curbelo also noted that the draft...Vote on Technical Corrections Bill Not Expected Until After Midterm Elections
Posted on Jul 13, 2018 in Individual Taxation, News
While House Republicans are in the process of drafting a technical corrections bill, House Republican leaders do not expect vote a on the bill until after the midterm elections in November. The technical corrections bill would be separate from the “phase 2” tax legislation that would make the individual tax cuts implemented by the 2017 tax act permanent. Kevin Brady, chairman of the...
European Commission Discussing Implementation of the TCJA with U.S. Officials
Posted on Jul 13, 2018 in Individual Taxation, News
According to Valdis Dombrovskis, a European Commissioner, the European Commission is speaking with U.S. officials about the Commission’s concerns with the 2017 tax act. European finance ministers have claimed that some provisions of the act violate international norms and double taxation treaties, especially the Base Erosion and Anti-Abuse Tax (or BEAT), which some commentators claim...
The White House Office of Management and Budget Has Not Yet Reviewed any New Tax Law Rules
Based on a new arrangement between the White House Office of Management and Budget (OMB) and Treasury, regulations and other guidance that have policy or economic significance will undergo a compliance review by the OMB. A senior administration official recently stated that Treasury and IRS have not yet sent any new tax regulations or guidance to the OMB for review, despite officials...Legislative Changes to the International TCJA Provisions to Be Considered
Posted on Jul 11, 2018 in Individual Taxation, News
In a recent interview, Kevin Brady, chairman of the House Ways and Means Committee, stated that legislative changes to the international provisions of the TJCA are in the works and that these changes may be included in the legislation associated with phase 2 of tax reform, which Brady indicated would be reviewed by House Republicans in July. President Trump has also weighed in on the...
Top New Jersey Tax Changes in the 2018 Budget Deal
Posted on Jul 6, 2018 in State and Local Tax
In a last-minute deal to avert a government shutdown, New Jersey Governor Phil Murphy and the New Jersey Legislature cobbled together a budget with numerous amendments to New Jersey’s tax law. View the full legal alert.