Tech Groups Want Help to Avoid Cloud Transaction Tax Hit

Business groups and tech giants want the IRS to clarify new cloud computing tax rules and ensure companies won’t take an unexpected tax hit.

Microsoft Corp. and tech groups including the Electronic Software Association, Information Technology Industry Council, and Software Coalition have signed up to speak at a Tuesday IRS hearing on regulations the agency proposed in August.

The proposed rules (REG-130700-14), under tax code Section 861, are largely consistent with how companies have interpreted outdated guidance from 1998, companies and organizations have told the IRS. But questions remain over how ...