Overview
Ways and Means Republicans Criticize Proposed Debt-Equity Regulations: Today, the Republican members of the House Ways and Means Committee sent a letter to Treasury Secretary Lew expressing concern over the proposed debt-equity regulations under section 385, released by Treasury on April 4. In the letter, Committee Republicans indicate that finalization of the proposed regulations in present form will have a profound and detrimental impact on business operations nationwide. The letter suggests that the retroactive effective date is inappropriate and should be changed to apply, at the earliest, to debt instruments issued on or after a date that is no sooner than 90 days after the regulations are finalized. The letter also requests an extension of the public comment period from July 7 to at least October 5.
IRS Continues to Fight Identity Theft Tax Fraud: In a news release today (IR-2016-94), the IRS and state tax agencies along with executives from the private-sector tax industry marked the first-year of the Security Summit partnership to combat identity theft tax fraud. Commissioner Koskinen noted that the Summit’s accomplishments had a real and substantial impact on curbing stolen identity refund fraud. Looking ahead to 2017, the Summit’s priorities remain focused on enhanced authentication procedures, improved information sharing, heightened cybersecurity, and greater education and outreach to the public. Effective July 1, the Summit will work under the auspices of the Electronic Tax Administration Advisory Council.
IRS Files Brief in Altera Appeal: Today, the IRS filed a brief in the US Court of Appeals for the Ninth Circuit in Altera Corp v. Commissioner. The brief argues that the Tax Court erred in holding that the 2003 amendments to Treas. Reg. §§ 1.482-1 and 1.482-7 are invalid to the extent they require commonly controlled parties in a qualified cost-sharing arrangement for the development of intangible property to share stock-based compensation costs. The IRS argues that the Tax Court’s reliance on its prior opinion in Xilinx was a “fundamental error.”