Tax Notes Talk

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.

Tax 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.

Two 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

Jeremy Scott, Tax Analysts Chief Operating Officer, shares his expert insights into the evolving landscape of U.S. tax legislation. He discusses the limited changes anticipated in 2024 due to a divided government and how IRS funding challenges may impact operations. Scott delves into the future of the bipartisan direct file program and the expected tax policies under a potential Trump administration, highlighting significant implications for IRS scrutiny and taxpayer litigation opportunities. These insights paint a vivid picture of the complexities ahead for U.S. taxation.

Tax Notes reporters recap some of the most memorable stories they encountered in 2024, from “pig butchering” scams to a denied late-filing excuse citing Christmas stress. For additional coverage, read these articles in Tax Notes:Maine Enacts Tax Credit to Keep Portland Baseball TeamDraftKings Kills Betting Tax Surcharge ProposalDraftKings Announces Surcharge Plan on States With High Betting Taxes'Pig Butchering' Theft Losses May Evade TCJA RestrictionsMega Win for British Snack Company in VAT DisputeBritish Supermarket Owes VAT on Food Bars, U.K. Tribunal FindsNutrition Company Owes VAT on Protein Foods, U.K. Tribunal FindsListen to other tax oddities episodes:Year-End Collection: Tax Oddities of 2023Year-End Collection: Tax Oddities of 2022Year-End Collection: Tax Oddities of 2021Follow us on X:Emily Hollingsworth: @EmilyHoll9Kiarra Strocko: @KiarraStrockoDavid Stewart: @TaxStewTax Notes: @TaxNotes***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesShowrunner: Jordan ParrishAudio Engineers: Jordan Parrish, Peyton Rhodes

Stephanie Soong, Tax Notes Chief Correspondent, dives into the latest from the OECD’s ambitious two-pillar reform project. She discusses updates on the proposed 15% minimum tax for multinationals and its implications for developing nations. The complexities of the Pillar 1 framework to streamline transfer pricing are addressed, alongside negotiations stalling over its mandatory adoption. Upcoming legal challenges in global tax reform and the fiercely debated digital services taxes are also explored, revealing a turbulent road ahead as the OECD aims for a 2025 rollout.

Tony Santiago, founder and president of TaxSearch Inc., is an authority on tax leadership and succession planning. He discusses the urgency of preparing for leadership transitions in tax departments, especially as baby boomers retire. Santiago emphasizes the need for early succession planning and internal talent development. He also highlights the evolving expectations for tax leaders, blending technical skills with strong communication. Finally, he explores the challenges and strategies of adapting to hybrid work models in tax functions.