The Tax Exchange - April 2017
Foreign nationals who spend more than 183 days in the U.S. may face U.S. federal tax liability unless they can qualify for treaty benefits. However, while the treaty may provide protection from substantive tax liability it may not provide relief from return filing obligations.
Facing the uncertainty of federal tax reform, and in addition to widespread budget deficits and lackluster economic growth, several states are considering new (or bringing back old) methods of revenue generation.
…and nobody knows what is on third. The Abbot and Costello skit was made well before e-commerce arrived, but its focus on confusion is an apt parallel to the current state of sales tax nexus in this country.
In a recent move showcasing the EU's agenda to ensure fair taxation, the European Parliament’s Committee on Economic and Monetary Affairs proposed several potentially far-reaching amendments to the public country-by-country reporting directive. If these rules are finalized, CbC reporting could apply to smaller companies that never expected to be subject to these potential onerous reporting requirements.
The IRS issued proposed regulations changing the definition of qualified matching contributions and qualified nonelective contributions applicable to 401(k) plans. Although this is favorable to plan sponsors, it may be too little, too late.
The U.S. Tax Court ruled against the IRS and concluded that Amazon properly priced the value of certain pre-existing intangibles to be used in Amazon’s European business. This was yet another blow to the IRS and could end up costing the IRS billions in other cases if the ruling persuades other companies to continue to fight on similar issues.