May 2019 / United States

May 27 2019

Interim guidance issued on Large Corporate Compliance (LCC) program

The US Treasury Department and the US Internal Revenue Service (IRS) released a Memorandum with interim guidance on the implementation of the Large Corporate Compliance (LCC) program. The Memorandum is dated 21 May 2019 and bears a Control Number of LB&I-04-0419-004. The Memorandum was issued to communicate changes in the administrative process for the selection and delivery of large corporate tax returns to employees of the IRS's Large Business and International Division (LB&I). Effective with the issuance of the Memorandum, the LCC program will supersede the Coordinated Industry Case (CIC) program within LB&I for the selection of large corporate cases. Beginning with the 2017 tax year, returns that meet the LCC criteria will be included in the LCC audit selection process (see United States-1, News 17 May 2019). The Memorandum is effective on 21 May 2019, and will expire on 20 May 2021.
May 31 2019

Congressional Research Service issues report on US tariffs on Chinese products

The Congressional Research Service (CRS) of the US Library of Congress has released a report entitled "Enforcing U.S. Trade Laws: Section 301 and China". The CRS report indicates an updated date of 23 May 2019 and is designated IF10708. Due to its concerns over China's policies on intellectual property (IP), technology, and innovation, the United States has implemented three rounds of tariff increases on a total of USD 250 billion worth of Chinese products under sections 301 through 310 of the Trade Act of 1974, as amended, which are commonly referred to as section 301. China has increased tariffs on USD 110 billion worth of US products. The CRS report states that a protracted and expanding US-China trade conflict could sharply reduce bilateral commercial ties, disrupt international supply chains, diminish global economic growth, and be costly to US consumers and firms that depend on trade with China. The CRS report also states that China could further retaliate by curbing operations of US-invested firms in China, reducing its holdings of US Treasury securities, and curtailing rare earth material exports to the United States. The CRS has previously issued a related report entitled "China's Retaliatory Tariffs on US Agricultural Products" (IF11085, 29 January 2019). The CRS is an agency within the US Library of Congress and serves the US Congress throughout the legislative process by providing legislative research and analysis for an informed national legislature.