In order to bring you the best possible user experience, this site uses Javascript. If you are seeing this message, it is likely that the Javascript option in your browser is disabled. For optimal viewing of this site, please ensure that Javascript is enabled for your browser. Tax Flashes and Legislative Updates - Grant Thornton LLP

Tax Flashes and Legislative Updates

New tax laws. New regulatory guidance from the Internal Revenue Service. Get the latest information on tax issues that may affect your company from our Tax Flashes and Tax Legislative Updates written by the tax professionals in our Washington National Tax Office. 

 

Congress passes, president signs into law $10 billion in international tax increases
The president signed into law legislation that includes international tax provisions estimated to raise $10 billion over the next 10 years. The international tax revenue raisers would make significant changes to foreign tax credit and other international tax rules and would affect many multinational companies. The provisions were pulled from a separate “tax extender” bill that has stalled in the Senate. They will leave a substantial revenue hole in the extenders bill that could complicate efforts to pass extender provisions such as an extension of the research credit.

The bill uses seven of the eight international revenue raisers originally proposed on the extenders legislation, leaving out only the provision to amend source rules for “guarantee fees.” On the positive side, the bill also includes a retroactive technical correction to an amendment to the statute of limitations rules for certain foreign reporting rules enacted earlier this year as part of the Hiring Incentives to Restore Employment Act (Hire Act). Few other changes were made to the international provisions apart from a delay in several effective dates. Besides the international tax provisions, H.R. 1586 would also repeal the advance earned income tax credit.

Read our Tax Legislative Update for all the details. Receive updates automatically: Email | RSS RSS | Twitter Follow GrantThorntonUS on Twitter

Related documents

  • This website supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document we encourage you to contact us or an independent tax advisor to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with, or attached to this document is not intended by Grant Thornton to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.