Law 360 recently published an article authored by our New York partner, Robert Kiggins, about recent IRS hearings impacting cloud taxation.
Here’s a short synopsis of the article:
On Feb. 11, a hearing was held in Washington, D.C., on the proposed regulations that were issued last summer under Section 861 of the Internal Revenue Code with regard to the classification for tax purposes of cloud transactions and transactions involving digital content.
This article is not a primer on the proposed regulations but rather a summary and analysis of some of the comments made about it at the hearing. In that regard, the proposed regulations are important (1) as a first step to provide guidance on the taxation of cloud transactions, and (2) as a clarification of taxation of transactions involving digital content.
By promoting a better understanding of the business processes involved in cloud and digital content transactions, the hearing between industry and government should help to minimize unforeseen problems when the regulations are put into final form.
Read the entire article HERE.