Ernst & Young Its Washington Dispatch

President Obama provides more details on "insourcing" proposals -- House-Senate conference committee seeks payroll tax cut, unemployment extension compromise -- US Third Circuit rules UK "windfall profits tax" not creditable -- IRS issues temporary interest allocation regulations -- New regulations issued on dividend equivalent payments under Section 871(m) -- IRS to withdraw 2007 coordinated issue paper on buy-in payments for intangible property available to CSAs -- US Customs and Border Protection moves closer to accepting transfer pricing adjustments -- IRS issues competent authority stats report for 2011

IRS issues final regulations on foreign base company sales income branch rules -- Final cost sharing regulations adopted -- US government issues final regulations on disregarded entities and conduit financing -- IRS provides advance notice of upcoming "unique reference identification" requirement for foreign entities -- IRS proposed regulations address cost basis regime for debt instruments, options -- Temporary and proposed regulations issued on Form 8938, Foreign Financial Asset Reporting -- President Obama signs temporary payroll tax cut bill; no movement on tax extenders -- Joint Senate Finance, Ways and Means Committee hearing on tax treatment of financial instruments and financial products -- Republican Senator Rob Portman to introduce corporate tax reform with territorial component

Supercommittee fails deficit agreement deadline -- More details on House Ways and Means Committee Chairman's territorial tax proposal -- Ways and Means Subcommittee on Select Revenue Measures holds hearing on territorial tax proposal -- IRS issues proposed regulations on taxation of foreign government income -- Proposed regulations clarify rules for controlling domestic shareholders to adopt, change accounting method or tax year on behalf of foreign corporation -- IRS publicly issues internal UTP guidance and procedures

Ways & Means Committee chairman releases major international tax reform proposal -- Sens. Hagan and McCain propose new tax repatriation holiday -- Senate subcommittee issues long-awaited report on effects of Section 965 repat provision -- President Obama's jobs bill, the American Jobs Act of 2011 fails to advance -- "Supercommittee" deadline looming in November -- US Customs and Border Protection considering changes affecting transfer pricing -- OECD releases proposed draft changes to Commentary on Article 5 (PE) of Model Treaty -- Taxpayer warning: “phishing” scam related to FBAR filings -- EY announces launch of Americas Tax Center

Recent US developments on the deficit, jobs, and overall economy -- Congressional "supercommitte" begins work -- IRS issues proposed rules on Section 1256 and notional principal contracts -- IRS addresses domestic corp’s insolvent foreign sub that makes CTB election to be treated as partnership -- IRS and Treasury release 2011-2012 Priority Guidance Plan -- Ninth Circuit affirms Tax Court in Samueli v. Commissioner

US budget / debt debate: where things stand -- IRS issues generic guidance on SRLY rules in DCL context -- IRS rules UK Remittance Basis Charge is a creditable tax for FTC purposes -- IRS Notice 2011-64 adds Bulgaria and Malta to list of countries eligible for reduced tax rates on dividends -- US Senate fails to take action on new US-Hungary tax treaty, protocols with Switzerland, Luxembourg -- Former Treasury Assistant Secretary for Tax Policy Michael Mundaca rejoins EY to co-lead National Tax

Deficit, debt and federal debt limit take center stage in Washington -- Treaty hearings move new Hungarian treaty, Swiss and Luxembourg tax protocols -- Final regulations issued on certain triangular reorgs involving foreign corporations -- IRS rules subpart F income qualifies under 95% REIT income test -- Section 6038D and Section 1298(f) info reporting requirements temporarily suspended -- FINCEN notice grants limited one-year extension to deadline for filing FBAR Form

US deficit, debt, and possibility of tax reform dominate debate in Washington -- Final regulations released on treatment under Subpart F and Section 367 of leasing aircraft, vessels in foreign commerce -- New 3% withholding requirement on payments from government entities to contractors delayed -- Fifth Circuit affirms Tax Court in Container Corporation-- Senate Foreign Relations Committee to hold treaty hearing 7 June -- OECD Draft addresses term "beneficial owner"

US Congress reaches FY 2011 budget compromise, competing FY 2012 budget frameworks released -- IRS will not challenge creditability of PR excise tax -- Further FATCA info reporting and withholding guidance released -- Final Section 904(d) regulations issued -- IRS advises on valuing compensation paid for intangible property requiring further developmentIRS clarifies potential effect of transfer pricing adjustments on Section 965 foreign earnings repatriations -- Revised FBAR form and instructions released -- IRS issues 12th annual APA report -- US-Panama TIEA in effect

Budget impasse, deficits, and tax reform dominate new Congress -- New US law imposes excise tax on certain payments to foreign persons -- Final FBAR regulations released -- IRS issues FAQs on Schedule UTP

President Obama releases proposed FY 2012 Budget; re-proposes many international tax provisions -- IRS 2011 Offshore Voluntary Disclosure Initiative offers late filing for FBARs and Forms 5471 without penalties -- OECD publishes scoping paper on intangibles

Tax reform in 2011 -- New proposed regulations require info reporting of bank deposit interest to all NRA persons

US Congress enacts $857 billion tax bill, including subpart F active financing and CFC look-through extenders -- Deficit Commission releases final report -- IRS issues eagerly anticipated FTC splitter guidance under new Section 909 -- IRS / Treasury 2010-2011 Guidance Plan heavy on international tax projects -- US issues final schedule UTP regulation; non-US corporations may have obligations -- US-Canada arbitration guidance released

Congress returns to uncertain lame duck session -- US-New Zealand protocol, US treaty with Malta in force -- IRS announces nonacquiescence in Veritas cost sharing decision -- IRS modifies position on inadvertent error rule for Section 1256 contracts -- Foreign tax credit splitter guidance coming soon -- New Puerto Rico law may impact foreign companies with local manufacturing

Tax legislative update for upcoming Congressional lame-duck session -- IRS Notice 2010-65 offers relief from Section 901(l)(1) for back-to-back IP licensing, retail distribution -- Final UTP Schedule and instructions issued -- EY international tax poll finds new legislation greatest tax risk for US MNCs

President Obama signs small business bill, tax extenders on hold -- President's Economic Recovery Advisory Board releases report on tax reform options -- IRS Notice 2010-60 FATCA guidance issued -- IRS Rev. Proc. 2010-32 offers CTB relief for certain foreign entities -- US government's first guidance on recent codification of economic substance doctrine -- Final international shipping and aircraft regulations released -- Taxpayers to be allowed to appeal international penalties before paying assessment.

Far-reaching international tax legislation enacted -- President Obama signs landmark financial reform legislation -- House Ways and Means Committee holds hearing on business restructuring and transfer pricing issues -- IRS acquiesces in result only in Xilinx v. Commissioner -- IRS concedes remaining cost-sharing issue in Veritas Software case -- IRS issues welcome Industry Director Directive on GRAs -- IRS realigning, renaming LMSB division to Large Business and International division --US District Court decision highlights dispute resolution alternatives regarding foreign-initiated adjustments -- US Senate approves new US-Malta treaty, US-New Zealand tax protocol

Federal debt compromise reached -- New version of Stop Tax Haven Abuse Act introduced in Congress -- House and Senate tax-writing committees hold joint hearing on debt / equity -- IRS issues final Section 956 regulations focusing on basis -- IRS finalizes regulations on structured passive investment arrangements -- IRS Notice 2011-53 offers new timelines for FATCA -- New IRS Directive on codified economic substance doctrine -- New FAQs on Schedule UTP -- Senate Foreign Relations Committee reports out new Hungary treaty, protocols with Switzerland and Hungary

Tax extenders legislation stalled in Senate -- IRS Notice 2010-46 addresses withholding taxes for securities loans -- IRS issues industry director directive on loss importation transactions -- Government will not file petition to US Supreme Court in Xilinx v. Commissioner

Pending tax extenders legislation contains significant international tax changes -- IRS Notice 2010-41 indicates government intent to issue regulations to classify certain domestic partnerships as foreign -- US Customs approves related party pricing supported by transfer pricing study, APAs