Monthly US Tax Bulletin - September 2025

Key highlights:

Federal taxes

• Proposed HIRE (Halting International Relocation of Employment) Act: The bill proposes a 25% tax on outsourcing payments made to foreign service providers serving US customers.
• Simplification of Corporate Alternative Minimum Tax (CAMT): The IRS has introduced interim guidance to streamline CAMT compliance for partnerships and large corporations.
• Inbound Asset Reorganisation Guidance: Proposed IRS regulations clarify the treatment of inbound reorganisations involving US real property interests’ transactions.
• Enhancements to Qualified Small Business Stock (QSBS): Expanded gain exclusions and broader eligibility criteria under the QSBS regime.

State taxes

• Illinois: Rolled out multiple tax amnesty programmes covering general taxes, franchise taxes, and remote retailer liabilities, offering penalty and interest waivers.
• Washington: Expanded its tax base to include additional services under retail sales tax and business and occupation (B&O) tax, including digital services, live presentations, staffing, and advertising.
• Colorado: Updated its list of tax haven jurisdiction and now requires foreign-derived deduction eligible income (FDDEI) deductions to be added back to state taxable income.

Monthly US Tax Bulletin - September 2025

The September 2025 edition of the Grant Thornton Bharat Monthly US Tax Bulletin provides a concise summary of recent key developments in federal and state taxes in the US.

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