Saturday, February 27, 2021

U.S. drops 'safe harbor' demand, raising hopes for global tax deal

U.S. Treasury Secretary Janet Yellen told G-20 officials that Washington had dropped the Trump administration's proposal to let some companies opt out of new global digital tax rules, U.S. and European officials said on Friday, raising hopes for an agreement by summer.

"Secretary Yellen announced that we will engage robustly to address both Pillars of the OECD project, and that the United States is no longer advocating for 'safe harbor' implementation of Pillar 1," a U.S. Treasury official said.

Publisher: CNBC
Date: 2021-02-26T17:00:41 0000
Author: https www facebook com CNBC
Twitter: @CNBC
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Ohio income tax collections would return to pre-pandemic regulations under new bill | Ohio |

(The Center Square) – With more employees working from home rather than offices, Ohio's income tax laws continue to be challenged, and the latest opposition comes in the General Assembly.

Senate Bill 97 repeals a pandemic stopgap passed by the Ohio Legislature last spring that allowed cities that are the home to businesses to continue to collect income taxes from employees who worked from home in another community.

Publisher: The News-Herald
Date: 2021-02-25T15:14:00-0500
Author: J D Davidson The Center Square
Twitter: @newsheraldinoh
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G20 promises no let-up in stimulus, sees tax deal by summer | Reuters

ROME/BRUSSELS (Reuters) - The world's financial leaders agreed on Friday to maintain expansionary policies to help economies survive the effects of COVID-19, and committed to a more multilateral approach to the twin coronavirus and economic crises.

The Italian presidency of the G20 group of the world's top economies said the gathering of finance chiefs had pledged to work more closely to accelerate a still fragile and uneven recovery.

The United States is readying $1.9 trillion in fiscal stimulus and the European Union has already put together more than 3 trillion euros ($3.63 trillion) to keep its economies through lockdowns.

Publisher: U.S.
Date: 2021-02-26T00:07:17Z
Author: Gavin Jones Jan Strupczewski
Twitter: @Reuters
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Tax Change Needed to Level the Playing Field for Small Businesses, Minorities and Women in

Statement by Ralph Albert Thomas, CPA (DC), CGMA, CEO and Executive Director, New Jersey Society of Certified Public Accountants

ROSELAND, N.J. – On Feb. 22, Governor Phil Murphy signed legislation that legalized marijuana for adult recreational use, making New Jersey the first in the region and the 13th state in the nation to do so. That was step two in allowing cannabis sales to proceed in New Jersey. The final step will be adoption of the regulatory framework that will be drafted by the Cannabis Regulatory Commission.

Publisher: Insider NJ
Date: 2021-02-26T21:17:43 00:00
Author: Insider NJ
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In case you are keeping track:

Coke, Whirlpool Keep Tax Court Losses Off the Books - WSJ

When court rulings and tax regulations go against them, companies have an effective way to minimize or defer the bottom-line costs. They don't count them, and announce that they will beat the government in the future.

Coca-Cola Co. , Whirlpool Corp. and Eaton Corp . have all lost to the Internal Revenue Service in the U.S. Tax Court over the past two years. But none of the companies subtracted the bulk of those costs from their publicly reported results.

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Publisher: WSJ
Date: 2021-02-24T12:00:00.000Z
Author: Richard Rubin and Theo Francis
Twitter: @WSJ
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There's Lots To Like In The Like-Kind Exchange Tax Regs

Miniature model house standing on a heap of dollar bills. Photo with clipping path.Some similar ... [+] pictures from my portfolio:

The long-absent definition of real property for like-kind exchanges is finally available in regulations (T.D. 9935), with several other helpful amendments to the regime for taxpayers. Questions remain, particularly regarding intangible property, but the final rules provide assurances and some increased flexibility compared with the proposed rules.

Publisher: Forbes
Date: 2021-02-26
Author: Tax Notes Staff
Twitter: @forbes
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PFIC Testing—Significant New Guidance but Some… | Fenwick & West LLP

On December 4, 2020, the U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) published final and proposed regulations providing guidance on the passive foreign investment company (PFIC) rules under Internal Revenue Code sections 1291, 1297 and 1298. The impetus of the new regulations was the 2017 tax act's modification of Code Sec. 1297(f) to provide specific rules to limit the application of the active insurance exception to PFIC status. 

Publisher: Fenwick & West LLP
Twitter: @FenwickWest
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Low-Wage Tax Penalty Risks Sparking Contract Labor Boom

A Democratic plan to slap tax penalties on companies with too many low paid workers would drive larger firms to outsource more of their labor unless Senate Finance Chairman Ron Wyden can plug potential holes in his plan, economists warned.

Wyden's proposal would impose a 5% penalty on a corporation's payroll for paying wages below a yet-to-be-specificed threshold. It's an alternative to the $15 minimum wage hike shot down by the Senate parliamentarian. Democrats are running against the clock as they push to pass a pandemic relief bill by mid-March.

Twitter: @tax
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