Tax Notes Talk

Melissa Wiley, a Partner at Kostelanetz LLP, brings her expertise on the Corporate Transparency Act to the forefront. She discusses the Treasury's recent decision to halt penalties for domestic companies, raising important questions about regulatory gaps. Privacy concerns regarding reporting are highlighted, as individuals struggle to protect personal information. Wiley also examines the potential impacts on American taxpayers and small businesses, amidst ongoing legal challenges and the complexities of compliance in an evolving landscape.

Tony Nitti and Damien Martin from EY dive into the top tax cases of 2024, focusing on two pivotal C corporation cases, Ju et al v. United States and Stead v. Commissioner. They unravel the complexities of Qualified Small Business Stock (QSBS), discussing compliance, shareholder exclusions, and the vital role of clear documentation. The duo also explores the doctrine of constructive receipt through a tax court case, illustrating the intricacies taxpayers face with income recognition. Their engaging reflections on tax law dynamics promise to inspire proactive planning.

In this discussion, tax professionals Damien Martin and Tony Nitti from EY dive into key S corporation cases for 2024. They examine the implications of disproportionate distributions in the Maggard case, highlighting S election complexities. Insights into navigating IRS requirements for S corporations are shared, alongside challenges stemming from corporate mismanagement. The duo also emphasizes the critical role of operating agreements and documentation in maintaining tax status, ensuring viewers grasp the intricate tax landscape that S corporations navigate.

In this enlightening discussion, tax experts Damien Martin and Tony Nitti from EY dive into the significant tax cases of 2024, particularly focusing on partnerships. They dissect the Denham Capital Management LP v. Commissioner and Surk LLC v. Commissioner cases, exploring the implications for IRS interpretations and partnership roles. The conversation highlights the complex relationship between general and limited partners, their tax responsibilities, and recent legislative shifts impacting asset managers. Prepare for a blend of humor, insights, and practical tax discussions!

Joseph J. Thorndike, a Tax Notes contributing editor and historian, explores the conservative case for taxing the rich, drawing connections to President Trump’s concept of 'the forgotten man.' He examines the term's historical evolution and its reinterpretation in modern politics. Thorndike delves into the complexities of tax reform, advocating for closing loopholes and widening the tax base. He also discusses the challenges of progressive taxation amidst resistance from powerful taxpayers, highlighting the ongoing need for fair and effective tax policies.

Robert Kerr, a former IRS employee and current tax consultant, joins Tax Notes reporter Benjamin Valdez to discuss the implications of President Trump's federal hiring freeze on the IRS. They explore how this freeze impacts staffing and operational capabilities, leading to uncertainties for employees. Kerr highlights challenges in maintaining taxpayer interactions and morale, amid new employee buyout initiatives. The conversation delves into the complexities of government downsizing and its potential effects on the IRS's long-term strategic priorities.

Scott Levine, former U.S. Chief OECD Tax Negotiator and Deputy Assistant Secretary for International Tax Affairs, shares his insights on President Trump’s executive order affecting the OECD's global tax deal. He discusses the potential impacts of U.S. non-participation in international tax frameworks and challenges such as Digital Services Taxes. Levine reflects on his tenure at Treasury, highlighting triumphs and trials, while sharing wisdom for future negotiators on fostering international collaboration in tax policy.

Send us a textTax Notes investigations editor Lauren Loricchio discusses security concerns regarding tax software platforms’ data-sharing practices.   Read Loricchio's article, "Monetization of Tax Data Sparks Concerns About Security."For additional coverage, read the following articles in Tax Notes:Taxpayer Data Leak Investigations Rarely Lead to ProsecutionsProPublica Data Leak Lawsuit Ends in SettlementIRS Discussing Response to Data Sharing by Tax Prep CompaniesFollow us on X:Lauren Loricchio: @LaurenLoricchioDavid Stewart: @TaxStewTax Notes: @TaxNotes**This episode is sponsored by the University of California Irvine School of Law Graduate Tax Program. For more information, visit law.uci.edu/gradtax.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesShowrunner: Jordan ParrishAudio Engineers: Jordan Parrish, Peyton Rhodes

Lili Martin-Mashburn, a partner at Morris, Manning & Martin, shares her expertise on the Corporate Transparency Act and its current legal challenges. She discusses ongoing litigation questioning the act's constitutionality, including significant cases from Alabama and the Small Business Association of Michigan. The implications for privacy rights and compliance uncertainty for businesses are highlighted. Lili emphasizes the need for companies to stay informed and prepared as the legal landscape evolves.

Send us a textTwo state tax policy experts discuss key tax proposals that states will likely address in 2025, including efforts to raise revenue and extend provisions of the Tax Cuts and Jobs Act. For additional coverage, read these articles in Tax Notes:Massachusetts Adopts Reg Changes on Apportionment, Married FilersIdaho Governor Pledges to Continue Providing Tax ReliefLeaked Docs ID Taxes Washington Senate Democrats Could ConsiderCOST Report Shows Modest State and Local Business Tax GrowthWashington Governor's Final Budget Adds to Calls for Wealth TaxationFollow us on X:David Stewart: @TaxStewTax Notes: @TaxNotes**This episode is sponsored by the University of California Irvine School of Law Graduate Tax Program. For more information, visit law.uci.edu/gradtax.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesShowrunner: Jordan ParrishAudio Engineers: Jordan Parrish, Peyton Rhodes