Search Results for agency_names:"Treasury Department"

The IRS and Treasury Department have proposed new regulations regarding the deduction limits on high employee salaries, specifically affecting public corporations. According to section 162(m) of the Internal Revenue Code, deductions for employee pay over $1,000,000 are limited, and this proposal incorporates amendments from the American Rescue Plan Act of 2021. The regulations now consider more employees, including those in affiliated corporate groups, as part of this deduction limit. Public feedback is being accepted until March 17, 2025, and organizations are encouraged to comment electronically.

The final regulations from the Treasury Department and Internal Revenue Service (IRS) implement changes to sections 263A, 448, 460, and 471 of the Internal Revenue Code, as amended by the Tax Cuts and Jobs Act. These changes simplify tax accounting rules for certain small businesses with average annual gross receipts not exceeding $25 million. The regulations allow eligible taxpayers to use different accounting methods that reduce complexity and lower compliance burdens. For instance, they can avoid detailed inventory accounting and use simpler procedures, reflecting tax law adjustments aimed at supporting small enterprises.

The Office of the Comptroller of the Currency (OCC) is proposing a new rule that would allow exemptions from certain requirements tied to Suspicious Activity Reports (SARs), which banks and savings associations must file. This rule aims to give national banks and federal savings associations some flexibility if they come up with new, more efficient ways to comply with anti-money laundering laws, while still being reviewed for safety and soundness. The proposal includes guidelines on how banks can apply for these exemptions and factors that will be considered in granting them, like consistency with the Bank Secrecy Act and any supervisory concerns. The OCC is inviting public comments on this proposed rule until February 22, 2021.

The U.S. Department of the Treasury's Internal Revenue Service (IRS) is seeking public comments on proposed information collection related to U.S. Employment Tax Returns and various related forms. This request, part of the IRS's effort to lessen the paperwork burden on taxpayers, falls under the Paperwork Reduction Act of 1995. The IRS aims to gather feedback by February 24, 2025, and the information collected is used to ensure the accuracy of reported employment tax-related activities. The forms are essential for employers to report tax activities, with an estimated 7.4 million respondents spending approximately 63 hours each on compliance.

The Treasury Department and the Internal Revenue Service (IRS) have finalized rules for reporting digital asset transactions performed by brokers. These new regulations, effective January 1, 2027, require brokers who regularly facilitate digital asset sales, like those in decentralized finance (DeFi), to provide forms reporting gross proceeds from these transactions. The rules primarily apply to trading front-end service providers, who are best positioned to report on such transactions due to their close interaction with customers. The regulations aim to enhance tax compliance by ensuring digital asset transactions are reported similarly to traditional financial trades.

The Department of the Treasury is inviting public comments on its plan to collect information related to the CARES Act Loan and Payroll Support Programs for air carriers and other eligible businesses. This request is part of an effort to reduce paperwork and ensure compliance with existing financial assistance agreements under the CARES Act and subsequent laws. The Treasury Department needs to gather feedback on several aspects, including the necessity and practicality of the information collection and ways to reduce the burden on respondents. Comments about this process are accepted until March 31, 2025.

The final regulations in the Federal Register address the rules around Passive Foreign Investment Companies (PFICs) and the conditions under which a foreign corporation can be considered a Qualified Insurance Corporation (QIC). These regulations, which provide clarity on the treatment of income and assets for PFICs, introduce specific tests such as the 25% test for qualifying as a QIC. They emphasize that a corporation's insurance liabilities must exceed a certain percentage of its total assets to qualify for certain exceptions. The regulations also aim to prevent tax avoidance strategies and increase compliance by setting out guidelines for how passive income and insurance assets should be evaluated.

A petition has been filed requesting the addition of cyanuric acid to the list of taxable substances, as stated by the Internal Revenue Service (IRS). This notice invites public comments on the petition and clarifies that this is not yet a decision to modify the list. The petition was submitted by Occidental Chemical Corporation, which asserts that cyanuric acid is composed of 27.90% taxable chemicals by weight and calculates a proposed tax rate of $2.11 per ton. Public feedback must be submitted by March 24, 2025, through the Federal eRulemaking Portal or via mail.

The Financial Crimes Enforcement Network (FinCEN) is working to renew a rule that lets banks designate certain customers as "exempt persons" so they don’t have to report large cash transactions over $10,000 with them. The rule aims to help banks reduce paperwork and make it easier to manage these accounts. FinCEN is asking for public comments on the process and its impact on banks' workload to ensure it is effective and not unnecessarily burdensome. This is part of a broader effort to comply with the Paperwork Reduction Act of 1995, which seeks to minimize paperwork burdens on the public.

The Treasury Department and the Internal Revenue Service (IRS) have issued proposed regulations regarding the method of accounting for certain disregarded transactions between a qualified business unit (QBU) and its owner. These regulations allow for a new election option intended to reduce the compliance burden for taxpayers by using a yearly average exchange rate for translating assets involved in frequently recurring transactions in the ordinary course of business. Additionally, the document invites comments on several topics, including the treatment of partnerships and controlled foreign corporations under sections 987 and 989 of the Internal Revenue Code. The regulations aim to provide clarity and simplify the compliance process for affected taxpayers.