Committee on Taxation (COT) Quarterly Overview

The Committee on Taxation (COT) held its quarterly meeting in Washington, DC on September 22-23. Committee members were updated on the outlook for tax legislation in the next Congress by a senior staff member of the Speaker of the House Paul Ryan’s staff. Members were told that the House Republican leadership’s tax reform blueprint will be the vehicle for tax reform in the next Congress, with a focus on lowering the corporate tax rate and establishing a more equitable treatment of foreign earnings. COT members indicated they will be closely watching as the tax reform effort winds its way through Congress next year.

Committee members were also updated on the Treasury Department’s Section 385 rulemaking by a senior partner at Ernst & Young. Members were told that COT’s comment letter on the regulations was one of nearly 100 comments received by the Treasury Department and that a number of concerns raised by the Committee may be addressed by the IRS before the new rules are finalized. The Section 385 rulemaking is a prime example of how FEI Committees play an important role in helping to influence and shape public policy.

Also on the agenda was a report on the IRS Country-by-Country reporting regulations. A senior partner from PwC provided COT members with an overview of how the new regulations will affect companies with a multinational presence and provided useful insight on how companies need to prepare to comply with the new reporting requirements.

Members also received a presentation on how campaigns will be used by the IRS Large Business and International Division as they complete a reorganization. COT members were advised that the IRS recently enacted a change in the appeals process that may make it more difficult to resolve issues in a timely manner.

Comment Letter Overview
CCR and COT Submit Comment Letter on FASB Income Tax Disclosure Accounting Standards Update (Reference File No. 2016-270)