In this section, we provide a summary of brief updates from the previous quarter on legislative, judicial, and administrative developments in tax that may impact Japanese companies operating in the United States.
Notice 2021-63: Clarifying temporary 100% deduction for food or beverages from restaurants and per diem rates
November 16, 2021
The IRS today released an advance version of Notice 2021-63 as guidance clarifying application of the temporary 100% business deduction for food or beverages from restaurants for taxpayers properly applying the rules for using per diem rates.
President signs bipartisan infrastructure bill, tax provisions are enacted
November 15, 2021
President Biden today signed into law H.R. 3684, the "Infrastructure Investment and Jobs Act." The legislation includes tax-related provisions.
IRS practice units: U.S. trade or business, permanent establishment; nonresident employee education expenses
October 27, 2021
The IRS Large Business and International (LB&I) division publicly released two "practice units" part of a series of IRS examiner "job aides" and training materials intended to describe for IRS agents leading practices about tax concepts in general and specific types of transactions.
OECD/G20 Inclusive Framework agreement on BEPS 2.0
October 9, 2021
One hundred and thirty six (136) member jurisdictions of the OECD/G20 Inclusive Framework (IF) on base erosion and profit shifting (BEPS)—representing more than 90% of global GDP—on 8 October 2021 approved an eight-page statement finalizing several key aspects of a framework for reforming the international tax system.
OECD: Agreement for global minimum tax, to resolve international taxation of digital economy
October 8, 2021
Certain multinational enterprises (MNEs) will be subject to a minimum 15% tax rate, effective from 2023.
OECD: Agreement for global minimum tax, to resolve international taxation of digital economy
Form 1099-NEC added to the combined federal-state filing program
October 7, 2021
The I RS on September 27, 2021, released a revised version of Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G (Rev. 9-2021), containing several changes related to updates that the IRS issued over the 2021 calendar year.
Employee retention credit—additional guidance ties up many loose ends
August 24, 2021
More than a year after the enactment of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136 ("CARES Act"), additional information from the U.S. Department of the Treasury ("Treasury Department") and the Internal Revenue Service ("IRS") regarding the employee retention credit ("ERC") was released in August 2021.
Employee retention credit—additional guidance ties up many loose ends (PDF)