House Passes 2018 Funding Package: The House passed the fiscal year 2018 funding package, including the Make America Secure and Prosperous Appropriations Act, 2018 (H.R. 3354), which includes a $149 million budget cut for the IRS. The package also contains a provision to increase funding for the Taxpayer Advocate Service. The funding package now goes to the Senate for consideration.
South Dakota Supreme Court Invalidates Economic Nexus Law: Today, the South Dakota Supreme Court held that the state’s economic nexus law, which extends the obligation to collect and remit sales tax to certain sellers with no physical presence in the state, is unconstitutional. The court relied on Quill Corp. v. North Dakota, the landmark US Supreme Court decision that prohibits states from imposing sales and use tax collection obligations on vendors without a physical presence in-state. The state argued that the advancements in computer technology, software, and the retail industry justify a reexamination of the Court’s decision in Quill.
First Common Reporting Standard Exchanges to Take Effect: The OECD announced today 49 jurisdictions have committed to start exchanges this month pursuant to the Common Reporting Standard Multilateral Competent Authority Agreement, which provides for annual exchange of information on offshore financial accounts to the tax authorities of the residence country of account holders. Another 53 jurisdictions will begin exchanges in September 2018.
Senate Finance Committee Holds Hearing on Individual Tax Reform: The Senate Finance Committee held a hearing today to examine ways to streamline the individual tax system to make it work better for American individuals and families. In his opening statement, Chairman Orin Hatch (R-UT) stated that any forthcoming documents from the Big Six “may be viewed as guidance or potential signposts” for drafting legislation, which will be done by the tax-writing committees. The following witnesses testified:
- Lily Batchelder Professor of Law and Public Policy at New York University School of Law and Affiliated Professor at New York University Wagner School of Public ServiceTestimony
- Ramesh Ponnuru Visiting Fellow, American Enterprise InstituteTestimony
Miscellaneous Guidance: Notice 2017-52 provides guidance on the treatment of leave-based donation programs to aid victims of Hurricane and Tropical Storm Irma.