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Groups Press IRS to Future-Proof Cloud Computing Tax Rules (1)

Feb. 11, 2020, 7:02 PM

Groups representing tech giants like Amazon, Google, and IBM asked the Internal Revenue Service to maintain certain industry standards used to determine how transfer of digital content is taxed.

The Software Coalition and the Information Technology Industry Council and others, as well as a representative from Microsoft Corp., made their case at a Tuesday hearing on cloud-computing rules the IRS released last year.

The regulations have the potential to classify “on-demand” internet transactions as either services or leases of property, or to source the income to either users or sellers—which have very different tax consequences.

The changes brought up at ...