Daily Tax Update - January 5, 2017: Joint Committee on Taxation Publishes List of Expiring Tax Provisions

Joint Committee on Taxation Publishes List of Expiring Tax Provisions:  On January 4, the Joint Committee on Taxation published a list of federal tax provisions that expired at the end of 2016 or are set to expire in the coming years.  Many of the provisions that expired on December 31, 2016 are renewable energy tax credits that were not included in the 2015 tax extenders package.

IRS Develops Practice Unit on the Application of 367(d) to Cost Sharing Arrangements:  On January 4, the IRS created an international practice unit titled “Section 367(d) Transactions in Conjunction with Cost Sharing Arrangements (CSAs).”  Practice units provide IRS employees with explanations of international tax concepts and information about a specific type of transaction.  This international practice unit focuses on transactions in which a US taxpayer may enter into a CSA arrangement with its controlled foreign corporation in a low or no tax jurisdiction and contribute high value intangibles to the CSA.  Rob Kovacev, partner in Steptoe’s Washington office, commented that the creation of the practice unit “reflects an increased emphasis by the IRS on using section 367(d) to attack outbound transfers of intangibles.  It is likely the IRS will attempt to use section 367(d) to salvage weak section 482 arguments on such transactions.”