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.
President signs budget reconciliation legislation; KPMG’s report on tax law changes
August 16, 2022
President Biden on August 16, 2022, signed into law H.R. 5376 (commonly called the "Inflation Reduction Act of 2022")—budget reconciliation legislation that includes significant law changes relating to tax, climate change, energy, and health care.
Analysis and observations: Tax law changes in the "Inflation Reduction Act of 2022" (PDF)
Overview of investment tax credit for investments in semiconductor manufacturing
August 9, 2022
President Biden today signed into law H.R. 4346, “The CHIPS and Science Act of 2022.” The date of enactment is August 9, 2022.
A primer on wash sale reporting in a volatile market
July 28, 2022
An overview of wash sale reporting rules, why they matter, and how investors can avoid inadvertently subjecting themselves to them
Correcting amendments to final foreign tax credit regulations
July 27, 2022
The U.S. Treasury Department and IRS released two sets of technical corrections that make changes to final regulations relating primarily to the determination of the foreign tax credit (FTC) and the allocation and apportionment of deductions (including foreign income taxes).
Correcting amendments to final foreign tax credit regulations (PDF)
IRS practice unit: Allowance of deductions and credits on Form 1120-F delinquent returns
July 26, 2022
The IRS Large Business and International (LB&I) division publicly released a "practice unit"—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.
Tax home: Rise of the telecommuters
July 22, 2022
"Tax home" rules, on which commute-or-business-trip analysis is based, assume employees have regular offices where they report.
Tax treaty update: United States terminates treaty with Hungary
July 16, 2022
The U.S. Treasury Department officially confirmed that the United States on July 8, 2022, notified Hungary of termination of the income tax treaty (1979) between the two countries.
Rev. Proc. 2022-26: Procedures for requesting that substances be added or removed from Superfund list
June 28, 2022
The IRS today released an advance version of Rev. Proc. 2022-26 that provides the exclusive procedures for requesting a determination under section 4672 (a)(2) that a substance be added to or removed from the list of substances under section 4672(a) subject to the excise tax imposed by section 4671(a).
IRS provides FAQs on the reinstated Superfund chemical excise tax
June 24, 2022
The IRS today announced the release of a set of "frequently asked questions" (FAQs) regarding the reinstated excise taxes imposed on certain chemicals and substances sections 4661 and 4671 (often referred to as "Superfund" excise taxes).
Tax information reporting on crypto-assets
June 22, 2022
Tax authorities are increasingly on enforcement of tax rules relating to crypto-assets.
Texas: Proposed changes to R&D regulations address federal conformity; combined group changes
June 15, 2022
The Texas Comptroller of Public Accounts on June 10, 2022, published proposed changes to 34 TAC §3.599 to address the franchise tax and development (R&D) activities tax credit.
Post-TCJA interplay between NOLs and charitable deductions
June 14, 2022
Complexities taxpayers encounter when they have both charitable contributions and NOL carryovers available to deduct
KPMG comments submitted to IRS regarding plans to update MAP and APA guidelines
June 1, 2022
Suggestions for how successor guidance to Rev. Proc. 2015-40 and Rev. Proc. 2015-41 could further improve the MAP and APA programs
KPMG Comments on Updates to Rev. Proc. 2015-40 and -41 (PDF)
Potential tax benefits under section 1341
May 18, 2022
Section 1341 may provide a permanent benefit in the form of rate relief, ability to use otherwise nondeductible capital losses, or an immediate refund for net operating loss positions.
Capturing a Permanent Tax Benefit from Previously Taxed Income (PDF)
Proposed changes to qualified intermediary (QI) agreement (Notice 2022-23)
May 18, 2022
The IRS on May 3, 2022 released an advance version of Notice 2022-23 that sets forth the proposed changes to the qualified intermediary (QI) agreement described in Reg. section 1.1441-1(e)(5) and (6).
Proposed changes to qualified intermediary (QI) agreement (Notice 2022-23) (PDF)
GLAM: Allocation and apportionment of deferred compensation expense for purposes of calculating FDII—departure from prior IRS legal advice
May 6, 2022
The IRS today publicly released a generic legal advice memorandum (GLAM) that addresses the proper method of allocation and apportionment under the section 861 regulations of deferred compensation expense for purposes of computing a taxpayer’s foreign-derived intangible income (FDII) deduction under section 250.
IRS practice unit: Country-by-country (CbC) report in the transfer pricing risk analysis process
April 26, 2022
The IRS Large Business and International (LB&I) division publicly released a "practice unit" -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.
For more information, please contact:
Tai Kimura | +1 408 367 2204 | firstname.lastname@example.org