The IRS recently released Notice 2020-3, which provides interim guidance on default federal income tax withholding rates applicable to certain periodic payments of deferred income. The Notice also provides clarity as to how the IRS will accommodate a change that affects the form used to elect federal income tax withholding from wages, but not
December 2019
Multiple Bipartisan 5G Wireless Bills Advance in Congress
5G wireless technology has captured the attention of Congress. At least 30 5G-related bills have been introduced in the House and Senate this Congress, signaling widespread interest by lawmakers in 5G. Several of these bills, addressing a range of issues including national security concerns, the promotion of U.S. leadership in international 5G standards-setting bodies, and…
AG Publishes Opinion on the Validity of the EU Standard Contractual Clauses
On December 19, 2019, Advocate General (“AG”) Henrik Saugmandsgaard Øe handed down his Opinion in Case C-311/18, Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (“Schrems II”). The AG’s Opinion provides non-binding guidance to the Court of Justice of the EU (“CJEU”) on how to decide the case.
In brief, the AG recommended…
House Energy and Commerce Committee Circulates Draft Privacy Bill Expanding FTC Authority
On December 18, 2019, staffers on the House Energy and Commerce Committee circulated a draft of a bipartisan privacy bill. The draft is currently unnamed and unfinished, but it lays out a comprehensive framework that expands both individuals’ rights to their data and the FTC’s enforcement role over digital privacy. Rep. Cathy McMorris-Rodgers (R-Wash.) and…
IRS Proposes Sweeping § 162(m) Regulations
Earlier this week, the IRS issued long-awaited proposed regulations under Section 162(m) of the Internal Revenue Code. Our colleagues at Covington’s Tax Reporting & Withholding Blog published a comprehensive summary and analysis of the proposed regulations. As you will see, the proposed regulations fell short of proposing workable solutions for public companies wrestling with the…
DOL Proposal for Electronic Disclosure of ERISA Pension Documents
In October, the U.S. Department of Labor released a proposed rule that would increase plan administrators’ ability to make certain required ERISA pension disclosures through electronic, rather than paper, delivery. Below is a summary of the proposed rule with some highlights on aspects of the proposal that have been questioned by interested parties and might…
Group Health Plans Face Automatic Public Disclosure of Negotiated Rates and Plan Payments
The Departments of Health and Human Services, Labor and Treasury released a new “Transparency in Coverage” proposed rule that requires most group health plans and issuers to publicly disclose negotiated rates with in-network providers and historical data showing amounts paid for covered items or services furnished by out-of-network providers. In addition, group health plans and…
Momentum In Drug Pricing Reform: House Passes New Legislation on the Heels of Presidential Candidates’ Drug Pricing Proposals
Late last week, House Democrats passed Speaker Nancy Pelosi’s Elijah E. Cummings Lower Drug Costs Now Act. This bill would, among other things, permit the Department of Health and Human Services (“HHS”) to negotiate lower prices for 250 of the costliest drugs on behalf of Medicare beneficiaries and other consumers. Although this particular legislation appears…
New Online Political Advertising Rules Coming to California January 1
Amid ongoing focus on how social media and other companies approach online advertising, California’s latest effort to require disclosure of online advertising will take effect January 1. We blogged on these revisions to the California DISCLOSE Act, sometimes called the Social Media DISCLOSE Act, when they passed back in 2018. Absent federal action, we expect…
Treasury Finalizes Section 871(m) Regulations and Further Extends Transitory Relief
On December 16, 2019, the Treasury and the IRS released final regulations under section 871(m) of the Internal Revenue Code. The regulations finalize the 2017 temporary and proposed section 871(m) regulations without any substantive change. On the same day, the Treasury and the IRS released Notice 2020-2 to extend through 2022 the relief provided in…