IRS Eyes Changes to Proposed Cloud-Computing Rules, Official Says

The IRS may revise its proposed regulations on the sourcing of income from cloud-computing transactions, an agency official said Saturday.

The IRS will “revisit a number of the decisions in this package” and “there may be changes,” said Peter Blessing, the agency’s associate chief counsel (international), speaking at the summer meeting of the New York State Bar Association’s tax section in Hamburg, N.J.

Some business groups and tax practitioners have urged the IRS to withdraw the cloud-computing rules altogether, but Blessing said that “we thought from an audit standpoint and a compliance standpoint, it’s better to have rules.”