Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

June 12, 2020
2020-5863

Report on recent US international tax developments – 12 June 2020

United States (US) Senate Republicans reportedly are not planning to take up the next coronavirus stimulus package until the end of July, following the two-week Fourth of July recess. Senate Majority Leader Mitch McConnell was quoted as telling his caucus on 9 June that he considers the work period following the 4 July recess — which extends from 20 July to 7 August — as the period during which the Senate should consider and pass the next installment of COVID-19 legislation.

White House National Economic Council Director Larry Kudlow also this week said during a cable news interview that the next round of coronavirus stimulus negotiations would begin “in earnest” after Independence Day. Kudlow said that President Trump remains interested in tax incentives and other assistance to companies that return their foreign operations to the US. Last month, President Trump suggested that businesses that manufacture products outside the US could face additional taxes, although he did not mention any specifics.

The Internal Revenue Service this week issued Notice 2020-47, requesting recommendations from the public for guidance projects to be included in the 2020 - 2021 Priority Guidance Plan. Recommendations are requested to be submitted by 22 July 2020, although suggestions will be accepted anytime during the year.

The US Trade Representative recently released four chapters of the uniform regulations necessary for understanding implementation of key provisions within the US-Mexico-Canada Free Trade Agreement (USMCA). The USMCA is set to take effect on 1 July 2020. The regulations, trilaterally agreed, reflect US Customs and Border Protection’s USMCA Interim Implementation Instructions, with the bulk of the information covering the interpretation, application and administration of rules of origin, as well as providing increased insight into the changes that USMCA enacts, especially for the automotive industry. See EY Global Tax Alert, USTR publishes USMCA Uniform Regulations Chapters as trade prepares for 1 July Entry into Force, dated 11 June 2020 for details.

_____________________________________________________________________________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP, International Tax and Transaction Services, Washington, DC

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more