Trade Group Urges IRS to Nix Proposed Cloud Transactions Rule

The National Foreign Trade Council is asking the IRS to withdraw the proposed cloud transactions regulations that were issued earlier this year—joining at least one other group calling for the proposed rule to be withdrawn.

The proposed rule would “add significant complexity” for taxpayers, including requiring companies to create extensive new data sets for their employees in order to comply, the NFTC said in a letter issued Monday.

The proposed regulations prescribe how to determine the source of income from cloud transactions for purposes of international provisions of the tax code.

• If the IRS doesn’t withdraw the proposed rules, ...