Daily Tax Update - October 3, 2017: Senate Finance Committee Holds Hearing on International Tax Reform

Senate Finance Committee Holds Hearing on International Tax Reform:  Today the Senate Finance Committee held a hearing on international tax reform. Senate Finance Committee Chairman Orrin Hatch (R-UT) in his opening statement argued that the US worldwide tax system is “outdated” and that the solution to corporate inversions and other similar problems “is to transition to a territorial-based system like virtually all of our foreign competitors.” The following witnesses testified:

  • Bret Wells
    Professor of Law and George Butler Research Professor of Law, University of Houston Law Center
    Testimony
  • Kimberly Clausing, Ph.D.
    Thormund A. Miller and Walter Mintz Professor of Economics, Reed College
    Testimony
  • Stephen E. Shay
    Senior Lecturer on Law, Harvard Law School
    Testimony
  • Itai Grinberg
    Professor of Law, Georgetown University Law Center
    Testimony

Miscellaneous Guidance:
Notice 2017-60 sets forth: (1) the mortality table to be used to determine minimum lump sums for distributions during stability periods beginning in the 2018 calendar year, and (2) updated mortality tables for 2018 determined under prior regulations. The updated mortality tables determined under prior regulations apply to certain plans with end-of-year valuation dates, and certain plans for which a transition option under new regulations is used for the 2018 plan year.

Revenue Procedure 2017-55 provides procedures for obtaining approval to use plan-specific mortality tables for pension funding purposes in lieu of the standard mortality tables that are generally required to be used.