International Tax Services Washington Dispatch, March 2020

In this episode, our ITS team summarizes key developments in the US for the month including the response to the COVID-19 pandemic.

Related topics Tax

This edition of the ITS Washington Dispatch for March 2020 summarizes key developments in the US for the month including the response to the COVID-19 pandemic, and how both businesses and taxpayers are being supported. It also includes information on a potentially huge amount of financial discrepancies in foreign investment into real estate, and updates from the OECD on both the Base Erosion and Profit Shifting 2.0 project, and the compliance of members in the BEPS framework.

This EY monthly update provides information on the impact of the Coronavirus on taxation in the US, including the three pieces of COVID-19 legislation enacted in March. The most prominent of these was the Coronavirus Aid Relief & Economic Security (CARES) Act, worth $2.2 trillion. It includes 8 business tax provisions aimed at providing liquidity.

Also, in response to the COVID-19 crisis, the IRS (in notice 2020-18) extended the 15 April due date for filing Federal Tax Returns to the 15 July 2020. The notice also removed the previously imposed caps on the payment amount that could be postponed.

In addition, the Treasury Inspector General for Tax Administration released a report that identified more than US$680 million in discrepancies that were required by the Foreign Investment in Real Property Tax Act. The IRS agreed to the recommendations of the Inspector General but disagreed with the figures reported.

The IRS were quoted as saying they won’t issue regulations that align the transfer pricing rules to changes introduced by the Tax Cuts and Jobs Act in relation to the definition of intangible property until 2021.

The OECD released an update on the Base Erosion and Profit Shifting 2.0 project, indicating its intentions to proceed at full speed despite the impact of Coronavirus.

Finally, the OECD released the second peer review report on compliance by members of the inclusive framework on BEPS, which covers 129 jurisdictions. It concludes that the majority have begun to translate their commitment to prevent treaty shopping into actions.

Learning outcomes

  • Understanding of the response to the COVID-19 crisis and the impact on businesses and the taxpayer
  • Learning about the report issued by the Treasury Inspector General into almost US$700 million in discrepancies with the Foreign Investment in Real Property Tax Act
  • Discovering the news on when the IRS will introduce legislation to align with the Tax Cuts and Jobs Act
  • Updates on the latest from the OECD on the Base Erosion and Profit Shifting 2.0 project, and the progress made with members of the BEPS framework.

Podcast

Episode 1

Duration 13m 49s

In this series

Series overview
(Event List - Manual)

International Tax Services Washington Dispatch, March 2020

In this episode, our ITS team summarizes key developments in the US for the month including the response to the COVID-19 pandemic.
Podcast

Episode 1

Duration
13m 49s

Presenters

International Tax Services Washington Dispatch, February 2020

In this episode, our ITS team details the confirmation that the US and France have agreed to de-escalate tensions over France’s DST.
Podcast

Episode 2

Duration
13m 30s

Presenters

International Tax Services Washington Dispatch, January 2020

In this episode, our ITS team provides a review of major US and international tax related news for the month of January 2020.
Podcast

Episode 3

Duration
16m 38s

Presenters

International Tax Services Washington Dispatch, December 2019

In this episode, our ITS team reviews the escalating tensions between the US and France, related to the trade investigations into France’s Digital Services.
Podcast

Episode 4

Duration
23m 40s

Presenters

International Tax Services Washington Dispatch, November 2019

In this episode, our ITS team focuses on the OECD’s public consultation document on Pillar Two of the global anti-base erosion proposal.
Podcast

Episode 5

Duration
15m 24s

Presenters

International Tax Services Washington Dispatch, October 2019

In this episode, our ITS team looks at the OECD public consultation document regarding Pillar One of the BEPS 2.0 project.
Podcast

Episode 6

Duration
20m 52s

Presenters

International Tax Services Washington Dispatch, September 2019

In this episode, our ITS team looks at the entry-into-force dates of tax protocols between the US and Japan, Spain, Luxembourg and Switzerland.
Podcast

Episode 7

Duration
13m 57s

Presenters

International Tax Services Washington Dispatch, August 2019

In this episode, our ITS team focuses on digital tax issues, the digital revolution, and the tax implications of a digital system.
Podcast

Episode 8

Duration
16m 13s

Presenters