IRS Releases Proposed Regulations Addressing the Excise Tax on Certain Educational Institutions Under Section 4968
Posted on Jun 28, 2019 in Uncategorized
On June 28, 2019, the IRS released proposed regulations under section 4968. Section 4968 was added to the Code by the Tax Cuts and Jobs Act and generally imposes an excise tax of 1.4% on the net investment income of applicable educational institutions that have at least 500 tuition-paying students (of which more than 50% are located in the United States) and that have assets of at...
Treasury Releases Final and Proposed GILTI Regulations and Temporary Section 245A Regulations
On June 14, Treasury and the IRS (the Service) released final and proposed regulations on the new global intangible low-taxed income provisions, or GILTI, that were introduced under the Tax Cuts and Jobs Act. Along with finalizing regulations related to determining a US shareholder’s GILTI inclusion and their pro rata share of a CFC’s subpart F income, the regulations also address the...IRS Releases Proposed Regulations Addressing the FDII and GILTI Deduction under Section 250
Posted on Mar 4, 2019 in International Tax, Uncategorized
On March 4, 2019, the IRS released proposed regulations under section 250. Section 250 generally allows a domestic corporation a deduction for its foreign-derived intangible income (FDII) and its global intangible low-taxed income (GILTI). The proposed regulations provide rules for determining the amount of the deduction, including guidance related to the provision’s taxable income...
Passthrough Regulations and Guidance Released
Posted on Jan 24, 2019 in News, Tax Accounting
Final section 199A regulations and additional proposed rules concerning passthrough deductions were released on January 18. The final regulations concern the 20 percent business income deduction available to passthrough owners meeting certain income thresholds that was introduced under the Tax Cuts and Jobs Act (TCJA). Included in the final regulations are a technical definition of...
IRS Releases Proposed Regulations Addressing Hybrid Arrangements
Posted on Dec 21, 2018 in International Tax
On December 20, the IRS released proposed regulations under sections 245A(e) and 267A. Section 245A allows a deduction for certain related party dividends, except in the case of certain hybrid dividends, and section 267A disallows deductions for certain amounts paid in a related-party hybrid transaction or to a related hybrid entity. The proposed regulations under section 267A clarify...
OMB Receives Final and Proposed Section 199A Regulations
Posted on Dec 17, 2018 in Individual Taxation
The Office of Management and Budget (OMB) received the proposed and final regulations regarding the new section 199A pass-through deduction regime on December 13 and 14. The proposed regulations focus on regulated investment company-specific guidelines while the final regulations follow up on the proposed pass-through deduction rules released in August. The regulations are not marked...
IRS Releases Proposed BEAT Regulations
Posted on Dec 14, 2018 in International Tax
On December 13, the IRS released proposed regulations (REG-104259-18) concerning the base erosion and anti-abuse tax (BEAT) under section 59A. Section 59A generally operates as a minimum tax on income without regard to certain deductible payments made to foreign related parties. The new regulations clarify who is an “applicable taxpayer” under the provision, as well as provide further...
OIRA Receives Final Transition Tax Regulations for Review
Posted on Dec 7, 2018 in International Tax, News
On December 6, the Office of Information and Regulatory Affairs (OIRA) received final regulations under section 965, the so-called transition tax. OIRA will have 45 days to review the regulations, as they are not designated for expedited review. The Treasury Department has previously stated that the final regulations will provide additional detail regarding ordering rules for...
OIRA Receives Foreign Partner Sales Regulations
Posted on Dec 5, 2018 in International Tax
On December 4th the Office of Information and Regulatory Affairs (OIRA) received regulations pertaining to the treatment of foreign partners’ gains on the sale of a U.S. partnership. The regulations will provide guidance on section 864(c)(8), enacted by the Tax Cuts and Jobs Act, which treats gain from the sale of an interest in a partnership engaged in the conduct of a U.S. trade or...
IRS Releases Proposed Foreign Tax Credit Regulations
Posted on Nov 29, 2018 in International Tax, News
On November 28, the IRS released proposed regulations (REG-105600-18) concerning the treatment of foreign tax credits and related issues taking into account the changes made by under the Tax Cuts and Jobs Act (TCJA). Foreign tax provisions under the TCJA modified the method for calculating taxable income for purposes of the foreign tax credit limitation; added two additional foreign...
House Republicans Release Tax Package
Posted on Nov 28, 2018 in News, Tax Accounting
House Republicans released a 297 page tax bill on the evening of November 26, with the possibility of voting on the proposed bill as soon as this week. The legislation includes a number of “extenders,” which would renew certain tax provisions set to expire; tax breaks for smaller businesses; and technical corrections to the Tax Cuts and Jobs Act (TCJA) passed in 2017. The five...
IRS Releases Business Interest Expense Proposed Regulations
Posted on Nov 27, 2018 in News, Tax Accounting
The IRS has released proposed regulations (REG-106089-18) concerning the business interest expense deduction limits applied to certain taxpayers. As amended by the Tax Cuts and Jobs Act (TCJA), section 163(j) generally places a limit on the amount of deductible business interest expenses in a current taxable year. The proposed regulations, released on November 26, provide rules for...
OIRA Receives Section 267A Regulations for Review
Posted on Nov 16, 2018 in International Tax
The IRS on November 13th submitted its proposed section 267A anti-hybrid regulations to the Office of Information and Regulatory Affairs for expedited review. Section 267A of the Tax Cuts and Jobs Act, eliminates deductions for any “disqualified related party amount” paid or accrued through a related hybrid entity or transaction. The regulations are expected to address such issues as...
Single Entity Can Apply 199A De Minimis Rule Multiple Times, According to IRS Official
Posted on Nov 15, 2018 in News, Pass-through Taxation
Speaking at the American Institute of CPAs Fall Tax Division Meeting in Washington, D.C. on November 14, IRS associate chief counsel Holly Porter stated that the section 199A de minimis test applied to identify specified service businesses could apply multiple times for the same entity if separate businesses are being operated. Enacted by the Tax Cuts and Jobs Act (TCJA), section 199A...
IRS to Consider Changing Section 199A Aggregation Rules Based on Comments
Posted on Nov 13, 2018 in Pass-through Taxation
IRS official Benjamin Weaver stated that the IRS is open to changing the aggregation rules set forth in the proposed section 199A pass-through deduction regulations since they are not “statutorily derived.” Weaver stated that the IRS has received numerous comments on the proposed regulations, particularly on the requirement that attributes of multiple businesses be aggregated at the...