Business Group Asks IRS to Nix Proposed Cloud Transactions Rules

The United States Council for International Business is calling on the IRS and Treasury to remove the proposed regulations on sourcing of income from cloud transactions.

USCIB said in a Thursday letter that the proposed rules are too “rigid” and fail to improve on the existing rules, which are more flexible and “capable of appropriately weighing facts and circumstances in determining the source of income from cloud services.”

The proposed regulations set rules for determining the source of income from cloud transactions for purposes of international provisions of the tax code.

• If the agencies decline to pull the proposed regulations, ...