Insights & News

Groups Urge Treasury Department to Clarify Book Income Tax

October 19, 2022

Business and Advocacy Groups Weigh In on Book Income Tax
Business and advocacy groups urged the Treasury Department to clarify how it will determine what constitutes the book income that will be subject to the 15% minimum tax. Insurance companies submitted a joint letter to ask for clarification on whether other comprehensive income and unrealized gains and losses are excluded from the book income subject to the tax. The group also asked the department to clarify how it will determine the book income and what should be included. The Institute of International Bankers, on behalf of foreign banks, said the Treasury Department should use the net income on Form 1120 to start determining the income subject to the tax.

OECD Urges U.S. to Scrap Mortgage Interest and SALT Deductions
The Organization for Economic Cooperation and Development (OECD) said, in its biennial economic survey, that the United States should phase out its tax deductions for mortgage interest and state and local taxes. The OECD argued that the mortgage interest and SALT deductions are distortions in the tax code, and eliminating them would broaden the tax base. Also, the mortgage interest and SALT deductions are regressive, favoring households with higher incomes.

Pennsylvania DOR Waives Appeal To State Supreme Court on Amazon Sales Tax Case
The Pennsylvania Department of Revenue (DOR) waived an opportunity to appeal a court ruling that prevents the state from seeking back taxes from Amazon fulfillment retailers. The DOR stated that it would not appeal the case to the Pennsylvania Supreme Court because the current appeals court ruling is limited to a unique set of facts with no broader applicability. The September 9 decision found that the DOR failed to demonstrate that the Amazon sellers had sufficient contacts with the state to trigger a nexus to collect and remit sales tax.

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