Recent IRS advice notes that a company group including several companies must support the interest deductions claimed by a specific company.
Recent IRS advice notes that a company group including several companies must support the interest deductions claimed by a specific company.
This article discusses implications of the recent IRS campaign targeting US expatriates to Puerto Rico and related tax issues.
The Puerto Rico Treasury issued guidance establishing new rules that would require a transfer pricing study to deduct cross-border expenses.
The Ways and Means Committee proposed legislation targeting digital assets to increase tax revenue via wash and constructive sales rules.
House Ways and Means issues its discussion draft amendment with revenue items to offset $3.5 trillion spending package.
Senate Finance Chairman Wyden unveils draft international tax reform bill that would overhaul GILTI, FDII and BEAT rules.
The European Court of Justice dismissed Nike’s request to annul the European Commission’s probe into illegal Dutch tax deal.
The IRS ruled that a plan of reorganization tied a series of steps together even though they were anticipated to span over five years.
The IRS has recently released new draft instructions for schedules K-2 and K-3 for international tax reporting purposes.
The European Commission proposes a new framework for business taxation with measures that promote an effective tax structure in the EU.
During conversations on Saturday June 5, 2021, the G7 made historic strides toward multilateral agreement on a 15% global minimum tax rate.
Ninth Circuit reverses Tax Court, based on Congress’ provision of tax benefits based on form rather than substance.
RO certifications for the Dec. 31, 2020 period are due July 1, 2021. RSM can assist ROs with this and other FATCA compliance requirements.
The Treasury just released a report proposing how cryptocurrency compliance will contribute to funding the $80 billion IRS overhaul.
The European Court of Justice refused to uphold the European Commission’s ruling that Luxembourg provided illegal state support to Amazon.
IRS issues procedures for certain foreign corporations to implement required or optional ADS depreciation changes.
After 17 months of internal discussions, the German administration approved a draft bill to implement the EU Anti-Tax Avoidance Directives.
Potential improved withholding tax rules for non-U.S. investors with qualified opportunity zone investments and some potential challenges.
U.S. private equity and venture capital funds with German investors have an additional 6 months to file German partnership returns for 2019.
Partially finalized regulations on business interest expense deductions provide helpful clarifications for multinational businesses.
UK government provides relief from DAC6, reducing the scope of reporting for UK intermediaries with cross-border transactions.
German tax may apply to payments for the licensing or sale of German registered IP, even if neither party resides in Germany.
IRS finalizes regulations coordinating the section 245A extraordinary disposition rule with the section 951A disqualified basis rule.
The IRS moved away from a decades old agreement and emerged victorious in the $3.3 billion tax dispute with the beverage company.
Cayman Islands just launched its new DITC portal and extended the due date for filing FATCA and CRS reports to Dec. 16, 2020.
IRS Announcement 2020-12 clarifies that lenders need not issue form 1099-C reporting PPP loans eligible for forgiveness under the CARES Act.
Final section 864(c)(8) regulations clarify rules for foreign partners with ECI from transfers of partnership interests.
Final FTC regulations provide clarity while Treasury takes a stance against permitting a credit for digital taxes in new proposed rules.
Updated IRS materials suggest a renewed and heightened focus on the reporting of virtual currency transactions by taxpayers.
On Sept. 1, 2020, the Treasury released final regulations on the section 59A base erosion and anti-abuse tax (BEAT).
The U.S. State Department informed Hong Kong authorities that the shipping agreement between the countries has been suspended or terminated.
IRS releases final and proposed regulations on the deduction for dividends from foreign corporations and related reporting rules.
Final regulations generally taxpayer-favorable versus 2018 proposal, additional proposed regulations give guidance on pass-throughs, others.
Final and proposed regulations related to the GILTI high tax exclusion and subpart F high tax exception released.
Treasury and the IRS have issued final regulations on determining the amount of the deduction for FDII and GILTI.
OIRA has begun reviewing the FDII and GILTI deduction regulations and the final regulations are expected to be released soon.
IRS FAQs outline procedures for alien individuals in U.S. to claim the medical condition exception to avoid U.S. resident status.
Treasury released guidance indicating that references to NAFTA can be interpreted as USMCA for purposes of U.S. tax treaties.
In response to the COVID-19 crisis, the European Commission has formally proposed the deferral of certain deadlines under DAC6.
Finalized section 385 debt-equity regulations proposed in 2016, government still plans to issue some less harsh rules in the future.
Time in U.S. counts as time in a foreign country under foreign earned income exclusion for taxpayers who returned to U.S. due to COVID-19.
The U.S., Cayman, and other jurisdictions extend deadlines for filing FATCA and CRS reports, but exams and compliance programs continue.
Nonresident alien individuals unable to leave the U.S. because of travel restrictions may avoid U.S. resident status under new IRS guidance.
A foreign tax credit transaction that was previously referenced in Notice 2004-20 has been removed by the IRS.
IRS announces new July 15, 2020 deadline for Americans living abroad, nonresident aliens, and foreign corporations.
Act contains broad relief for individuals and businesses; includes funding vehicles, recovery payments, and modifications to TCJA provisions
Today, the House of Representatives passed the CARES Act on a voice vote and the President signed the bill enacting it into law.
CARES Act provides general increase to the limitation amount (i.e., the maximum allowable deduction) and special rule for partnerships
Coronavirus Aid, Relief and Economic Security Act provides liquidity by providing five-year NOL carryback and other help for corporations.
Cayman Islands has extended the deadline for filing 2019 FATCA and CRS reports to September 2020 and intends to launch a new portal.
On March 19, the U.S. Senate released the third round of emergency assistance resulting from the 2020 COVID-19 pandemic.
A taxpayer was assessed willful failure to file FBAR penalties after voluntarily withdrawing from OVDP program.
Rev. Proc. 2020-17 grants information reporting and penalty relief to individuals with respect to applicable tax-favored foreign trusts
Altera petitions the Supreme Court of the United States to hear case regarding validity of cost sharing arrangement regulations.
IRS has issued final regulations narrowing nonrecognition treatment for certain transfers of property to partnerships with foreign partners.
The IRS is willing to consider relief from double taxation resulting from the application of section 965 in limited circumstances.
The IRS finalized rules for withholding and reporting U.S. source payments to foreign individuals and financial institutions.
Newly released foreign tax credit regulations address tax reform changes, clarify existing rules and provide new elections and safe harbors.
Final regulations affect whether a controlled foreign corporation is a related person under attribution rules.
The IRS has published final section 6050Y regulations requiring reporting of sales and acquisitions of certain life insurance contracts.
New IRS enforcement campaign targeting the section 965 transition tax compliance indicates a likely increase in section 965 audit activity.
New guidance from the UK’s Her Majesty’s Revenue and Customs provides more clarity for businesses engaged digital asset businesses.
IRS to retain regulations treating some related party debt as equity, but will propose rules easing one of the regulations’ harshest rules.
All companies seeking QI, WP, or WT status for 2019 must apply by Nov. 15, 2019 to have an agreement in effect.
The IRS has published a long-awaited practice unit as guidance for examinations of electronic books and records under section 1441.
New IRS cryptocurrency guidance provides much needed clarity but may require changes to returns not yet filed.
Proposed rules limit the impact and reduce the reporting burden caused by tax reform changes to CFC ownership rules.
The IRS announced new relief procedures from paying back taxes for certain former citizens who wish to become compliant.
Fluctuation in value of stock did not impact exception to gain recognition, but no ruling on overall tax-free nature of reorganization.
IRS answers a few important questions regarding the taxation and withholding rules for uncashed distribution checks.
Proposed regulations provide guidance on classifying cloud transactions and income sourcing for transfers of digital content.
Cost-sharing arrangements remain in flux as Altera continues. Taxpayers should monitor the developments to ensure appropriate alignment.
A refund opportunity exists for taxpayers who paid the CSG and CRDS French social taxes thanks to new guidance from the IRS.
Revisions to the U.S. income tax treaties with Switzerland, Luxembourg, Japan and Spain may pass the Senate after years of being stalled.
Final regulations reduce the amount determined under section 956 for certain domestic corporations that own stock in foreign corporations.
Final and new proposed GILTI and Subpart F regulations provide significant relief to private equity and other non-corporate taxpayers.
The IRS issued proposed regulations designed to clarify and modify the rules for foreign pensions investing in U.S. real property.
The new disclosure will likely be used to gauge virtual currency noncompliance and may require disclosure of the six most recent tax years.
Withholding generally applies to transfers of partnership interests by foreign persons, regulations generally follow previous guidance.
Cayman Islands will accept Cayman FATCA and CRS reports, originally due May 31, through July 31, 2019, without penalty.
With the second installment of taxpayer’s section 965 liability due soon, there are several items to remember before the filing deadline.
The deadline for QI/WP/WTs to submit applications to form a consolidated compliance group for certifications due in 2019 is April 1, 2019.
The IRS issues new FAQs providing relief from withholding tax penalties on certain dividend equivalent payments and undistributed earnings.
This alert details upcoming deadlines for Forms 1042/1042-S, FATCA Reports, RO Certifications and FBAR filings.
Proposed regulations for section 250 deductions provide multi-step process to account for NOL deductions and interest deduction limitation.
Treasury and IRS issue proposed guidance on global intangible low-taxed income and foreign-derived intangible income deductions.
The E&P of upper tier CFC partners of a domestic partnership must be increased as a result of the partnership’s subpart F income.
Final section 965 regulations extend the deadline to make, or amend a previously made, basis adjustment election to May 6, 2019.
Taxpayers can avoid accelerating section 965 deferred transition tax payments if they file agreement by March 7, 2019.
The Internal Revenue Service has released final Section 965 forms, schedules and instructions for taxpayers to use this filing season.
Final regulations addressing the implementation of the section 965 transition tax have been released by the IRS.
Companies in the U.K. face withholding tax on intercompany interest, royalties and dividends from related parties in the EU.
Newly introduced tax reform technical corrections bill will serve as the roadmap for future legislative tax correction packages.
The Mexican government has introduced two tax stimulus credits for certain taxpayers operating in the northern states.
Regulations would implement law requiring gains on the sale of some partnership interests to be treated as connected with a US business.
New proposed regulations implement sections 245A(e) and 267A regarding hybrid dividends and transactions with hybrid entities.
Treasury and IRS plan to issue regulations addressing issues affecting foreign corporations with previously taxed earnings and profits.
The IRS and Treasury have recently released proposed regulations regarding the new Base Erosion and Anti-Abuse Tax (BEAT).
The IRS has issued new FAQs for the 2018 tax year to provide guidance on filing and payment obligations under section 965.
Proposed regulations reducing burdens under the Foreign Accounts Tax Compliance Act and Chapter 3 provide relief for Withholding agents.
The deadline for FFIs to certify compliance and confirm their status rapidly approaches. Login to the FATCA portal now to avoid exposure.
The IRS is gearing up for its 1042 and 1042-S compliance campaign slated to begin in early 2019 with focus on common errors.
IRPAC’s recent report proposes changes to withholding and reporting requirements for loan fees, deemed dividends, and 871(m) transactions.
The IRS has issued new FAQs to provide clarification and guidance for the filing of section 965 transfer agreements.
Entities seeking Qualified Intermediary, Withholding Foreign Partnership or Trust agreements must submit applications by Nov. 16.
The IRS has published a new Form W-9 and revised Pub. 1281 reflecting TCJA’s reduction in the backup withholding rate from 28 to 24 percent.
The IRS released proposed regulations that eliminate the current tax on certain off-shore income deemed repatriated.
IRS expands the list of international tax specific issue-based compliance campaigns identified by the LB&I division of the IRS.
IRS has informally announced their intent to delay and eventually eliminate FATCA withholding on certain gross proceeds.
Tax deferral sought by Exelon denied; deficiency and penalty amounts in excess of $526 million affirmed on appeal.
A “Special Update” to the IRS transition tax FAQs grants an extension of the deadline for filing section 965 transfer agreements.
Some e-file software does not conform to IRS guidance for S corp shareholders wishing to make a 965(i) election, and they must paper file.
The IRS announces that it intends to extend the period in which to make a basis election under the transition tax regulations.
Transition period limiting instruments in scope of new section 871(m) have been extended for another two years, until Jan. 1, 2021.
Election to pay tax on Subpart F income at corporate rates doesn’t create imaginary domestic corporation for other purposes.
IRS and Treasury clarify that since GILTI is treated similarly to a subpart F inclusion, GILTI is not includable in calculation of UBTI.
Proposed regulations would require complex calculations and new record keeping to comply with new tax laws on offshore income.
Withholding agents should be prepared to begin collecting new Forms W-9 when the form is finalized which could be as early as Oct. 2018.
Tax Court finds that PFIC gains are not included in current-year gross income and losses from PFIC shares do not offset gains.
Second Circuit says 10-year statute of limitations on refunds applies only where taxpayer claims foreign tax credit and not deductions.
IRS memorandum reiterates that the Service may not issue refunds for overpayments where transition tax balance is due.
The Ninth Circuit has withdrawn its July 24 Altera opinion in favor of the IRS while a reconstituted panel considers the opinion.
IRS’ attempt to re-characterize loan as a distribution from subsidiary’s earnings fails under debt-equity principles.
The Court of Federal Claims held that IRS’s authority to impose penalties for willful failure to file FBARs is not limited to $100,000.
Proposed regulations addressing the implementation of the section 965 transition tax have been released by the IRS.
The IRS has completed its upgrade to include the COPA and periodic certification process to the FATCA Registration System.
The IRS has announced that it will upgrade its FFI Registration system; FFIs must confirm their FATCA classifications for RO certifications.
Despite the upcoming termination of the OVDP program, other IRS programs remain for taxpayers to use to cure certain errors.
Taxpayers must consider financial statement impact of the unexpected reversal of the full Tax Court decision in Altera.
IRS released memoranda defining the standard for willful failure to file FBAR penalties. IRS determined it is a civil standard.
Final anti-inversion regulations largely follow the 2016 proposed regulations with some limited changes and clarifications.
The LB&I division of the IRS has identified several international tax issues to be the focus of their new issue specific audit strategy.
The IRS has published a new FATCA FAQ on good faith standard for QIs that comes amidst other information reporting updates.
The IRS has announced that it is currently planning to launch the FATCA certification portal in late July or early August.
New FAQs provide relief for certain taxpayers with Q1 2018 estimated tax underpayments or missed installment elections.
Recent informal comments from an IRS official underscore need for partnerships to ensure they have accurate Forms W-8 on file for investors.
New proposed regs amend rules for determining whether a taxpayer is required to e-file 1099, 1042-S, and other information returns.
Cayman Islands effectively extends FATCA and CRS reporting deadline by granting relief from penalties until the end of July.
A district court found that FBAR penalties cannot exceed a regulatory cap of $100,000, despite the relevant statute allowing higher amounts.
IRS alert highlights a scam that uses the complicated requirements of foreign withholding and reporting certificates to prey on taxpayers.
Constructive distributions resulting from bargain sales between related parties triggered withholding tax and penalties.
Tax Court rules transfers between entities resulted in constructive distributions that were subject to withholding tax.
Taxpayers and practitioners should note several new developments with respect to CRS as they ready for the FATCA/CRS reporting season.
IRS substance-over-form argument to re-characterize transactions between a DISC and IRA as excess contributions rejected by First Circuit.
Treasury and IRS release additional guidance regarding the computation of the section 965 transition tax on the untaxed foreign earnings.
IRS provides interim rules with respect to withholding tax on the sale of a foreign partner’s partnership interest.
The IRS has provided more guidance to help taxpayers meet their filing and payment requirements for the section 965 transition tax.
The IRS loosens foreign taxpayer identification number collection requirement amidst new information reporting developments and deadlines.
District court upholds IRS summons issued to U.S. law firm pursuant to an information exchange request from the French tax authority.
The IRS announced it will begin the process of ending the 2014 Offshore Voluntary Disclosure program, with a closure date of Sept. 28, 2018.
The IRS issued guidance concerning foreign corporations electing to change their taxable year-end in an attempt to defer transition tax.
Petitioner argues to Supreme Court that $1 million FBAR penalty violates U.S. constitution and US-Swiss treaty.
Treasury official suggests government may not have authority to grant relief for foreign corporations caught by ‘downward attribution’ rule.
IRS issues additional guidance addressing the calculation earnings and profits, and other aspects of the new one-time repatriation tax.
The FASB recently issued Q&As to address certain accounting issues raised by TCJA. Following is our summary of the FASB Staff Q&As.
Tax Court found CFC’s guarantee of parent’s loan to be an investment in U.S. real property, and thus resulted in income inclusion.
Tax reform has been signed into law. Read RSM’s summary of the major business, international and individual tax provisions.
Proposed regs issued by the IRS provide guidance on treatment of foreign currency gain or loss of a CFC under business needs exclusion.
The IRS has released new Frequently Asked Questions that provide additional guidance with respect to several issues.
Ninth Circuit affirms treatment of investment in a foreign corporation as debt, resulting in denial of foreign tax credit.
Canada-U.S. competent authority agreement for the automatic exchange of country-by-country information has been released by the IRS.
Netherlands expands scope of dividend withholding tax rules for 2018 even while it considers permanent repeal beginning in 2019.
India releases draft “Master File” filing requirements that would apply if certain revenue and transactional thresholds are met.
10-year foreign tax credit limitation period does not apply to taxpayer who claimed a credit but later amended return to claim a deduction.
The IRS and Treasury will delay the effective date of recently issued complex foreign currency regulations by one year.
District court holds Obama-era anti-inversion rules were implemented without providing taxpayers an appropriate comment period.
New guidance released by the IRS formally eases the mandate requiring banks and other withholding agents to collect FTINs.
District court determines taxpayer’s failure to include one of his two Swiss bank accounts on his FBAR report was not “willful.”
Proposal includes welcome aspects, but its potential applicability to ordinary bad debt deduction rules is uncertain and possibly adverse.
Cayman confirms FATCA portal to remain open after deadline, while IRS separately confirmed relief for mandate to collect foreign ID numbers.
Ninth Circuit upholds Tax Court’s decision that a couple failed to prove they were entitled to a foreign earned income exclusion.
Postponement of dividend equivalent withholding effective dates granted in late 2016 have been further extended by one year.
Foreign financial institutions that are otherwise in compliance with the terms of their agreements now have until Oct. 24, 2017 to renew.
The Tax Court rules that the IRS’ attempt to cancel taxpayer’s APAs without basis was an abuse of discretion.
The Cayman Islands has recently extended, for the final time, the deadline for US FATCA & CRS reporting to Aug. 31, 2017.
New IRS guidance on country-by-country (CbC) reporting highlights useful information and additional resources.
Court holds that gain on sale of interest in U.S. partnership is not taxable, rejecting long-standing IRS guidance.
Treasury has recently identified eight regulations that impose undue burden or complexity, or exceed the statutory authority of the IRS.
IRS issues final versions of Form 8975, Country-by-Country Report, Schedule A thereto, and accompanying instructions.
Revised Form W-8IMY contains new certifications and treatments to better align with requirements in final and temporary regulations.
IRS Chief Counsel issues guidance on foreign deferred compensation plan tied to U.S. deferred compensation plan (a back-to-back plan).
Cayman Islands extends deadline for Cayman financial institutions to provide notification of their intent to file FATCA and CRS reports.
New audit guidance released regarding the meaning of ‘substantially complete’ with respect to international information return penalties.
The IRS may provide relief to certain financial institutions required to collect foreign TINs by Jan. 1, 2018.
IRS news release notifies taxpayers with foreign contacts of new and pending filing deadlines as well as other reporting requirements.
New audit guidance provides agents with a roadmap to assist in auditing multinational entities’ functional currency determinations.
IRS executes competent authority agreements with three new countries, Iceland, South Africa and New Zealand, bringing U.S. total to five.
Officials from 76 jurisdictions, not including the United States, met to sign the BEPS multilateral treaty instrument.
The IRS has confirmed that two country-by-country competent authority agreements have been signed, one of which was with the Netherlands.
Updated UN transfer pricing manual means taxpayers should be wary of their transfer pricing positions, particularly in developing countries.
Tax Court ruling could encourage taxpayers to use comparable uncontrolled transactions method to value buy-in payments.
Notice 2017-21 gives taxpayers working abroad a boost to the housing expense limitation under section 911 for certain high-cost locations.
IRS issues compliance reminders to non-U.S. citizens and U.S. withholding agents that they may have U.S. filing obligations.
The Sixth Circuit disagreed with the IRS using substance over form to recharacterize DISC dividends as excess Roth IRA contributions.
Regulations make technical changes to section 871(m) withholding rule but questions about legal effect remain in light of regulation freeze.
The bill is part of Germany’s efforts to implement the OECD’s BEPS Action Plan, passage expected by September 2017.
Regulations provide rules governing contributions of property to a partnership having a foreign partner related to the contributing partner.
IRS provides guidance for early filing of country-by-country report for accounting periods beginning Jan. 1, 2016.
The IRS has published new FFI and QI agreements along with temporary regulations and a new QI system.
Revised withholding foreign partnership and trust agreements incorporate new regulations and relax certain compliance requirements.
Final passive foreign investment company rules provide relief from PFIC reporting rules to taxpayers in a variety of situations.
Reporting recordkeeping rules for foreign-owned corporations expanded to include disregarded entities; several exceptions not applicable.
IRS issues long-awaited regulations to compute income from foreign branch operations and associated foreign exchange gains and losses.
Treasury issues final and temporary section 385 regulations that add documentation rules along with significant exemptions.
Temporary and proposed regulations attempt to curb tax base erosion by addressing earnings stripping and corporate inversions.
Mexico has issued new rules and guidance for Maquiladoras that soften the impact of some of the changes included in the 2014 tax reform provisions.