Tax Notes Talk

Emily Hollingsworth, a Tax Notes reporter, and Ryan Minnick, COO at the Federation of Tax Administrators, delve into the growing role of artificial intelligence in state tax agencies. They discuss California's innovative AI initiatives aimed at enhancing taxpayer support and improving operational efficiency. The conversation highlights challenges of balancing transparency with data security, the importance of training staff, and insights from a survey on AI adoption for fraud detection. Their insights reveal how state agencies are navigating this technological transformation.

Send us a textTax Notes investigations editor Lauren Loricchio discusses Treasury’s information sharing agreement with the Department of Homeland Security and its implications for immigrants. Read Loricchio's full story in Tax Notes, "Information Sharing Deal Complicates Immigrant Return Filing."For more on what's been happening at the IRS, check out our previous episodes:Past IRS Commissioners Analyze Agency Changes Under TrumpIRS Automated Guidance: Pros and ConsBehind the Story: Investigating the Faults in the IRS's FOIA SystemThe Latest at the IRS: Personnel Changes, More Staff ReductionsFollow us on X:Lauren Loricchio: @LaurenLoricchioDavid Stewart: @TaxStewTax Notes: @TaxNotes**Have you or a peer made a lasting impact on state and local tax policy? Nominations for the 2025 Tax Analysts State and Local Tax Award of Distinction are open. For more information or to nominate someone, go to taxnotes.co/awards.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesProducers: Jordan Parrish, Peyton RhodesAudio Engineers: Jordan Parrish, Peyton Rhodes

Jonathan Samford, President and CEO of the Global Business Alliance, and Kevin Klein, Senior VP of Government Affairs at the same organization, dive into the complexities of the proposed international tax provisions of the reconciliation bill. They examine the contentious Section 899 retaliatory tax, potential impacts on job creation, and the alarming implications for international businesses. Their discussion highlights the stark differences between the House and Senate's approaches, emphasizing concerns over U.S. competitiveness and the financial burden on taxpayers.

Send us a textJessica Millett of Hogan Lovells discusses the proposed changes to the Opportunity Zone program under the House version of the One Big Beautiful Bill Act and how the Senate might react.For more on the One Big Beautiful Bill Act, check out our previous episodes:One Big Beautiful Bill: Breaking Down the House Tax PackageThe House Budget Bill’s Clean Energy Tax Credit ChangesFor more coverage, read the following in Tax Notes:Several Tax Issues Remain Unresolved for Senate RepublicansAnalysis: New Opportunities for Opportunity Zones in the Big Beautiful BillFollow us on X:Marie Sapirie: @mariesapirieDavid Stewart: @TaxStewTax Notes: @TaxNotes**Have you or a peer made a lasting impact on state and local tax policy? Nominations for the 2025 Tax Analysts State and Local Tax Award of Distinction are open. For more information or to nominate someone, go to taxnotes.co/awards.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesProducers: Jordan Parrish, Peyton RhodesAudio Engineers: Jordan Parrish, Peyton Rhodes

In this engaging discussion, former IRS Commissioners Daniel Werfel and Larry Gibbs share valuable insights into the agency's past and future. They tackle the significant challenges of workforce downsizing and the impact of budget cuts on taxpayer compliance. The conversation also explores the integration of AI in tax administration, emphasizing the delicate balance of automation and security. With a focus on enhancing taxpayer trust, they discuss the need for modernization within the agency amidst evolving operational demands.

Cady Stanton and Katie Lobosco, Capitol Hill reporters for Tax Notes, dive into the final version of the House’s reconciliation bill. They break down the key updates and last-minute tweaks in the tax package, highlighting political dynamics as it shifts to the Senate. The discussion touches on the potential fiscal impacts, with projections of nearly $3 trillion in deficits over the next decade. They also explore the timeline for Senate actions and the broader implications of these legislative maneuvers on tax policy.

Send us a textJenny Speck with Vinson & Elkins discusses the clean energy tax credits in the House’s One Big Beautiful Bill Act, including last-minute changes to the House Rules Committee’s version. For more coverage, read the following in Tax Notes:House Advances $3.8 Trillion Tax Bill; Faces Rewrite in SenateDemocratic Dads Say Tax Bill Would Pass Debt Burden to KidsClean Energy Industry Seeks Edits to Tax BillAnalysis: The Future of IRA Credit Transfers: Predictions From the First YearFollow us on X:Marie Sapirie: @mariesapirieDavid Stewart: @TaxStewTax Notes: @TaxNotes**Have you or a peer made a lasting impact on state and local tax policy? Nominations for the 2025 Tax Analysts State and Local Tax Award of Distinction are open. For more information or to nominate someone, go to taxnotes.co/awards.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesProducers: Jordan Parrish, Peyton RhodesAudio Engineers: Jordan Parrish, Peyton Rhodes

Industry experts Ernie Tedeschi, former White House economic advisor at Yale, Erica York from the Tax Foundation, and transfer pricing guru Ryan Finley dive into the complexities of Trump's tariff policies. They discuss the economic impacts of tariffs on both domestic and international markets, analyze trade deficits beyond numbers, and scrutinize the effectiveness of tariffs compared to other revenue methods. The conversation also touches on the relationship between tariffs and digital taxation, highlighting the challenges tax advisors face amidst shifting policies.

Send us a textTax Notes chief correspondent Stephanie Soong discusses how the Trump administration’s tax priorities have been shaping negotiations on the OECD’s two-pillar project. Listen to our previous episodes on the two pillars here:Former U.S. OECD Negotiator Talks Trump's Global Tax ImpactMaking Progress: Updates on the OECD Tax Reform PlanAn Update on Pillar 1 Amount BPillar 1 Amount B: Disagreements and DividesFor more coverage, read the following in Tax Notes:EU Tax Observatory Urges More Talks on Pillar 2 Tax IncentivesStakeholders Back Mix of Pillar 2 Tweaks to Reassure the U.S.EU Presidency Lays Out Options to Address U.S. Pillar 2 ConcernsGILTI’s Coexistence With OECD Global Minimum Tax Is U.S. PriorityFollow us on X:Stephanie Soong: @StephanieSoongDavid Stewart: @TaxStewTax Notes: @TaxNotes***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesProducers: Jordan Parrish, Peyton RhodesAudio Engineers: Jordan Parrish, Peyton Rhodes

Professors Joshua Blank and Leigh Osofsky, co-authors of *Automated Agencies: The Transformation of Government Guidance*, dive into the IRS's use of AI and chatbots for legal guidance. They discuss how automation can streamline taxpayer interactions but also raise concerns about misinformation and oversimplification. The duo highlights the inequities faced by taxpayers with fewer resources and underscores the importance of transparency in developing these tools. Their insights explore the delicate balance between efficiency and accuracy in modern tax administration.