Overview
IRS Issues Proposed Regulations on Deemed Distributions of Stock: Today, the IRS issued proposed regulations (REG-133673-15) which provide guidance on the amount and timing of a deemed distribution under section 305(c) that result from adjustments to rights to acquire stock. The proposed regulations state that the value of a deemed distribution would be the excess of (1) the FMV of the right to acquire the stock immediately after the applicable adjustment over (2) the FMV of the right to acquire the stock without the applicable adjustment.
European Commission Proposes Tax Disclosure Rules for Multinationals: Today, the European Commission issued a proposal that would require multinationals operating in the EU with global revenues exceeding EUR 750 million a year to publish key information on where they make their profits and where they pay their tax within the EU on a country-by-country basis. In addition, affected companies would have to publish an aggregate figure for total taxes paid outside the EU.
Technical Corrections Legislation Introduced in Congress: On April 11, the Technical Corrections Act of 2016 was introduced in Congress as H.R. 4891 and S. 2775. The legislation would clarify drafting errors and make minor revisions to the Protecting Americans from Tax Hikes (PATH) Act of 2015 (P.L. 114-113); the Consolidated Appropriations Act, 2016; the Fixing America's Surface Transportation Act (P.L. 114-94); the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (P.L. 114-41); the Stephen Beck Jr., ABLE Act of 2014 (P.L. 113-295); the American Taxpayer Relief Act of 2012 (P.L. 112-240); and the U.S.-Korea Free Trade Agreement Implementation Act (P.L. 112-41). The Joint Committee on Taxation released a technical explanation (JCX-16-16) of the legislation with descriptions of the corrections.
Senate Finance Committee Holds Hearing on Cybersecurity: Today, the Senate Finance Committee held a hearing titled, “Cybersecurity and Protecting Taxpayer Information.” The hearing focused on safeguarding taxpayer information and what improvements can be made by the IRS to protect taxpayers from cybercriminals. Chairman Orrin Hatch (R-UT) said in his opening statement, “[W]e have also seen unprecedented growth in the scope and scale of cyberattacks aimed at stealing personal information and billions of dollars from taxpayers.”
The witnesses were:
- John Koskinen Commissioner, Internal Revenue Service
Testimony - Terence V. Milholland Chief Technology Officer, Internal Revenue Service
- J. Russell George Treasury Inspector General for Tax Administration, Department of the Treasury
Testimony - Michael McKenney Deputy Inspector General for Audit, Treasury Inspector General for Tax Administration
- Gene L. Dodaro Comptroller General, Government Accountability Office
Testimony - Gregory C. Wilshusen Director, Information Security Issues, Government Accountability Office