Regulatory Analysis

Get the latest updates in regulatory analysis news

Posted October 9, 2017 by Sovos
North Carolina Updates W-2 and 1099 Filing Specifications

North Carolina’s Department of Revenue recently updated their reporting requirements for filing W-2 and 1099 information. Per an announcement on the eNC3 website, the CD ROM specifications previously used for W-2 and 1099 reporting (DP-43 and DP-40, respectively) are no longer no longer valid.  Instead, electronic filers must use the eNC3 specifications listed on the eNC3 […]

Read More
Posted October 5, 2017 by Ramón Frias
Puerto Rico Limits Suspension of Sales Tax Bi-weekly Remittance Requirement

The Puerto Rico Hacienda modified an announcement initially made via their Facebook page several days ago that substantially limits the suspension of their requirement to make bi-monthly pre-payments of sales tax. Specifically, Hacienda issued Administrative Determination 17-15 on October 2. The Determination indeed suspends the bi-weekly pre-payment of sales tax, but only for medium and […]

Read More
Posted October 5, 2017 by Ramón Frias
Catalonia Votes for Independence

On October 1, 2017, the Catalonian region of Spain held a referendum on independence. While the Spanish Supreme Court declared the vote unconstitutional and Spain does not recognize the result as legally binding, the vote was held and the results were that an overwhelming majority of Catalan voters expressed a clear desire to become an […]

Read More
Posted October 5, 2017 by Ramón Frias
Mexico Provides Relief to VAT Taxpayers Affected by Earthquake

The Mexican President has issued a Decree by which taxpayers that were affected by the earthquake of September 19 in the municipalities of the states of Guerrero, Mexico, Morelos, Oaxaca, Puebla, Tlaxcala, as well as in Mexico City, will be allowed to pay the VAT due on transactions carried out during the months of September, […]

Read More
Posted October 5, 2017 by Charles Riordan
European Commission Proposes VAT Overhaul

On October 4, 2017, the European Commission published a set of proposals aimed at simplifying and modernizing the current VAT system. The "cornerstone" principles of the Commission's approach are:    Combating VAT fraud and reducing the €150 billion VAT Gap Establishing a "One Stop Shop" for cross-border trade Consistently applying the "destination principle" for VAT […]

Read More
Posted October 2, 2017 by Ramón Frias
Brazil Postpones the Effective Date of the NFe 4.0

The ENCAT recently released Version 1.31 of the Technical Note 2016/002 relating to the Nota Fiscal Electronica Version 4.0. The revised notice specifies that the final effective date of the NFe 4.0 is postponed from October 2 until November 6, 2017.  The planned "sun-setting" of Version 3.1 has not changed and continues to be April […]

Read More
Posted October 2, 2017 by Ramón Frias
Puerto Rico Suspends Bi-Weekly Prepayment of Sales Tax

The Treasury Department of Puerto Rico (Hacienda) has suspended the requirement to remit the regularly scheduled pre-payments of sales tax due for transactions taking place during August 2017. As has been the case recently, the announcement was made via the Hacienda Facebook Page. Details are scant aside from a notation indicating that the suspension will […]

Read More
Posted October 2, 2017 by Charles Maniace
Massachusetts Requests Data on Amazon Sellers in Continued Effort to Close E-Commerce Tax Loopholes

On the heels of enacting Regulation 830 CMR 64H.1.7, which details how e-commerce sellers may have a sales tax collection and remittance obligation in Massachusetts, a Massachusetts judge has ordered Amazon.com to disclose the identity of all third-party sellers who utilize the Amazon marketplace and had their inventory stored in the Amazon warehouse facility in […]

Read More
Posted October 2, 2017 by Erik Wallin
Massachusetts Nexus Regulation Set to Take Effect 10/1

The Massachusetts Department of Revenue released the finalized version of 830 CMR 64H.1.7 on September 22, 2017. The finalized regulation contains much the same (but not identical) language as the proposed regulation which in-turn borrowed heavily from the previously rescinded Directive 17.1. Throughout these machinations, the purpose has always remained the same – utilizing existing […]

Read More
Posted October 2, 2017 by Ramón Frias
Executive Order to Exempt Donations from Puerto Rico Use Tax

While official guidance remains difficult to obtain, news from Puerto Rico indicates that the Governor has issued an Executive Order establishing that all donations sent to the island can clear customs free of use tax and any other local tax. According to the information provided by the Secretary of the Treasury, for the exemption to […]

Read More
Posted October 2, 2017 by Adam Rivera
IRS Releases Publication 1220

The IRS has released Publication 1220 for Tax Year 2017. There are a number of changes from the previous version.   Specifically, several forms now have new field positions or instructions, the list of states that participate in the IRS’ Combined Federal/State Filing Program has been updated, instructions for the FIRE System have been updated, […]

Read More
Posted September 29, 2017 by Paul Ogawa
Connecticut Releases TY 2017 form for Annual Reconciliation of Withholding for Non-payroll Amounts

Connecticut recently released an updated version of CT-945, Annual Reconciliation of Withholding for Non-payroll Amounts (for TY 2017). CT-945 is the state-specific reconciliation form that is filed annually to report non-payroll amounts subject to Connecticut income tax withholding. There is one important change to the most recent version of this form, which has to do […]

Read More
Posted September 29, 2017 by Sovos
IRS FATCA File Status Notification

Due to a VERY high volume of files coming into the IRS, the sending out of File Status Notifications by the IRS will take longer than usual over the next few days.

Read More
Posted September 28, 2017 by Sovos
IRS Notice Addresses Narrowing in Circumstances in Which a Foreign TIN is Required

The IRS released a notice detailing forthcoming changes to Chapter 3 of the Internal Revenue Code ("Code") regarding reporting on Form 1042-S. Specifically, the IRS reported that the amendment will narrow the circumstances in which a Foreign TIN and date of birth ("DOB") will be required.  A phase-in period will be adopted for FIs to […]

Read More
Posted September 28, 2017 by Sovos
IRS Releases Notice Detailing Procedures for FFIs required to report U.S. TINs under FATCA Model 1 IGAs

The IRS released an advance version of Notice 2017-46 which details procedures for FFIs required to report U.S. TINs under FATCA Model 1 IGAs. In this advance notice, the IRS establishes that they will not determine that there is significant non-compliance with reporting obligations under an applicable Model 1 IGA during calendar years 2017, 2018, […]

Read More
Posted September 27, 2017 by Sovos
Latest Senate ACA Repeal Effort Falls Short

The Senate announced that the Graham-Cassidy bill to repeal the Affordable Care Act would not be brought forward to a vote. The bill was announced approximately two weeks ago and seemed to have some momentum. However, Senators McCain (R-AZ) and Paul (R-KY) quickly came out against the bill. On Monday, Senator Collins (R-ME) announced that she […]

Read More
Posted September 26, 2017 by Ramón Frias
Puerto Rico Extends Sales Tax Holiday for Prepared Food

As posted to the Twitter Feed for the Treasury Department of Puerto Rico (Hacienda), the sales tax exemption for prepared food has been extended until October 8. The information released on Twitter does not make any reference to a regulation or ordinance, likely due to limited infrastructure and capabilities currently available in Puerto Rico in […]

Read More
Posted September 25, 2017 by Ramón Frias
Puerto Rico May Have Enacted another Sales Tax Holiday

News from Puerto Rico seems to indicate that as result of the devastation created by Hurricane Maria, the Treasury Department of the island (Hacienda) has issued a four-day sales tax holiday for prepared food. This sales tax holiday is would be starting Thursday September 21, and would end Sunday, September 24 2017. This information has not […]

Read More