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

November 12, 2021

Report on recent US international tax developments 12 November 2021

United States (US) President Joe Biden will sign the Infrastructure Investment and Jobs Act (HR 3684) next week when Congress returns to Washington from the Veterans Day work period recess. The House passed the Senate-passed bill late on 5 November, clearing the way for about US$550 billion in new spending on highway and other projects. Worth noting, the infrastructure bill will impose information-reporting requirements on sales of cryptocurrency and other “digital assets.” Cryptocurrency and other "digital assets" sold by customers of "brokers" will be subject to Form 1099-B reporting and cost-basis reporting. The legislation specifically amends the Internal Revenue Code (IRC) to make certain changes including expanding the definition of a broker, defining "digital assets," and applying the cost-basis-reporting regime for securities to digital assets. The amendments will be effective for information returns filed in 2024 for the 2023 calendar year.

House Speaker Nancy Pelosi, who attended the climate summit in Glasgow this week, reiterated the plan for the House to vote on the Build Back Better Act (HR 5376) next week. Last week’s agreement among House progressives and moderates that resulted in passage of the bipartisan infrastructure bill also called for the House to vote on the budget reconciliation bill no later than the week of 15 November.

Recall Democratic moderates withheld their support for the bill last week pending estimates from the Congressional Budget Office (CBO). CBO announced this week that they would be releasing estimates for individual titles of the reconciliation bill as they are completed, but warned that some estimates would take longer – particularly for provisions that interact with various titles of the bill.

There is some speculation that this week’s reported high US inflation numbers for October may affect the timing of Senate action on the Build Back Better bill. Senator Joe Manchin reacted to the inflation report saying the “threat” from inflation is not temporary and “getting worse.” The Senator’s comments are being viewed through the prism of the possible inflationary impact of the proposed US$1.7 trillion budget reconciliation package.

A senior Treasury official this week said that the first set of eagerly-anticipated final foreign tax credit regulations are still planned to be released before the end of the year. The official said the final rules, which are expected to come in at around 400 pages, are in the “clearance process.” Treasury and the Internal Revenue Service issued proposed foreign tax credit regulations in September 2020. Repeating prior comments, the official said the foreign tax credit package would focus on core rules, including jurisdictional nexus and refundable credits. A second set of final foreign tax credit regulations will likely be released in 2022, he said. The proposed regulations would apply to foreign taxes paid or accrued in tax years beginning on or after the date of publication of the final rules.

Proposed regulations on previously taxed earnings and profits (PTEP) are approximately a month or two from completion as to core aspects of the package, the official said, but will then require considerable review. The first set of proposed PTEP regulations are expected to be released in 2022. The official conceded that provisions in the House’s proposed Build Back Better Act could affect the first set of PTEP regulations currently in process, pointing to proposed changes to IRC Section 961(c) basis adjustments.


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

Ernst & Young LLP (United States), International Tax and Transaction Services, Washington, DC


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 Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more