United States

The Tax Exchange - August 2016

US Congressman taking steps to preserve Quill among recent criticism

US Congressman taking steps to preserve Quill among recent criticism

The physical presence nexus standard adopted through Quill v. North Dakota has come under fire from the states and through U.S. Supreme Court dicta questioning the relevance of the standard in today’s e-commerce centric economy.

  • August 30, 2016
Deferred revenue treatment in loss transaction

Deferred revenue treatment in loss transaction

The IRS recently provided guidance regarding the treatment of deferred revenue in a reverse merger transaction. In this transaction, the seller, a loss corporation, had deferred revenue obligations related to items of prepaid income.

  • August 25, 2016
New deadlines for 2016 wage reports: Is your company ready?

New deadlines for 2016 wage reports: Is your company ready?

The new Jan. 31, 2017, deadline for filing W-2s, W-3s and 1099-MISC (Box 7) reports with the Social Security Administration or the IRS may catch many companies unprepared this year.

  • August 23, 2016
Unintended consequences of QSub elections for insolvent subsidiaries

Unintended consequences of QSub elections for insolvent subsidiaries

When an S corporation makes a qualified subchapter S subsidiary (QSub) election with respect to a subsidiary, the subsidiary is deemed to liquidate into the parent S corporation as of the effective date of the election.

  • August 19, 2016
Did you miss the deadline for restating your retirement plan?

Did you miss the deadline for restating your retirement plan?

Generally, employers and self-employed individuals with IRS preapproved 401(k) or other tax-qualified defined contribution retirement plans were required to sign new plan documents no later than April 30, 2016. These updated documents incorporate changes required by the Pension Protection Act.

  • August 17, 2016
IRS issues final regulations on country-by-country reporting

IRS issues final regulations on country-by-country reporting

The IRS has issued final regulations requiring annual country-by-country reporting (CbCR) by U.S. taxpayers that are the ultimate parent of a multinational enterprise (MNE) group. The final regulations affect U.S. parent companies of an MNE with $850 million or more in global group revenues for the preceding year.

  • August 11, 2016
Proposed restrictions on nonbusiness assets in spinoffs

Proposed restrictions on nonbusiness assets in spinoffs

In a spin-off, a corporation distributes stock of a subsidiary to its shareholders. To qualify for tax-free treatment, the distributing and distributed corporations each must conduct an active trade or business (ATB) and the spin-off must not be a device for the distribution of earnings (a device).

  • August 09, 2016
Biodiesel production credit proposed by Sens. Grassley and Cantwell

Biodiesel production credit proposed by Sens. Grassley and Cantwell

On July 13, 2016, Sen. Chuck Grassley, R-Iowa, and Sen. Maria Cantwell, D-Wash., announced the introduction of S. 3188, the “Biodiesel Tax Incentive Reform and Extension Act of 2016.”

  • August 04, 2016
What does Brexit mean for US multinationals? Keep calm and carry on.

What does Brexit mean for US multinationals? Keep calm and carry on.

The immediate impact of Brexit was clear on the financial markets as many world indexes posted double digit losses in the wake of the historic vote. As market jitters have calmed many are now focusing on the long-term consequences.

  • August 02, 2016