The I.R.S. recently proposed revisions to the regulations applicable to the classification of cloud computing transactions. The existing regulations were adopted in 1998 and have not kept pace with computer-based transactions, which are an ever-growing and evolving area. To put things in perspective, when the current regulations were adopted, a typical internet connection could download 1GB in approximately 48 hours. Now, it takes less than 15 minutes. Hannah Daniels and Galia Antebi explain the three broad proposals intended to bring the regulations up to date. Oh, how times have changed!