Four States File Suit Against the United States for Limiting the SALT Deduction: Today, the states of New York, Connecticut, Maryland, and New Jersey filed a lawsuit in the Southern District of New York arguing that the $10,000 cap on the state and local tax (SALT) deduction passed as part of the Tax Cuts and Jobs Act is unconstitutional. The complaint argues that the SALT cap was enacted to target Democratic-leaning states and interferes with the sovereign authority of the states.
The Platform for Collaboration on Tax Releases Revised Report on Taxation of Offshore Indirect Transfers of Assets: Yesterday, the Platform for Collaboration on Tax, a joint initiative of the IMF, OECD, UN, and World Bank Group, released a revised draft of its report on the taxation of offshore indirect transfers after considering and responding to comments received on the previous draft. Comments are requested on the revised draft and should be sent by email no later than September 24.
IRS Publishes Applicable Interest Rates for August: Today, the IRS released Revenue Ruling 2018-21 prescribing certain interest rates for federal income tax purposes for August, including applicable federal interest rates, adjusted applicable federal interest rates, the long-term tax-exempt rate, the appropriate percentages for determining the low-income housing credit, and the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest.