Talking Tax

Cheri Freeh, Chair of the Tax Executive Committee at AICPA, shares critical insights on the imminent phaseout of paper tax refunds. She highlights the confusion facing low-income and unbanked taxpayers as they shift to electronic payments. Freeh also discusses the challenges real estate trusts face when submitting banking info under current IRS rules. Additionally, she sheds light on the banking obstacles that high-risk businesses, particularly in the marijuana industry, endure when trying to secure services for direct deposits.

The Trump administration is shaking up the landscape for tax-exempt organizations, especially churches, by allowing more political advocacy without risking their status. There's a spotlight on Harvard and threats to its tax-exempt status amid accusations of bias, while colleges scramble to adjust admissions policies to avoid scrutiny. Experts discuss the delicate balance the IRS must maintain between safeguarding free speech and preventing misuse of charitable statuses. Concerns about the ethical implications of IRS powers add another layer to this heated conversation.

In this discussion, Chris Cioffi, a Bloomberg Tax reporter renowned for his insights on Capitol Hill, reveals the quirkiest tax breaks in the recent $3.4 trillion law, including perks for whale captains and spaceport builders. He dives into the implications of reduced gambling loss deductions and the fierce debates over potential fixes. Cioffi also outlines the challenges of achieving bipartisanship in future tax legislation, spotlighting the urgency for lawmakers as elections approach and the complex dynamics at play.

Hernan Katz, Founder and CEO of Webridge Technology, shares valuable insights into navigating tariffs and transfer pricing. He emphasizes lessons learned from Latin America, where companies have adapted to fluctuating tariffs for decades. Katz discusses the necessity for cross-functional collaboration among departments to tackle complex trade issues effectively. He also highlights the evolving role of tax departments in corporate strategy, stressing the importance of aligning pricing strategies with customs valuation to enhance compliance.

Lauren Vella, a Bloomberg tax reporter specializing in international tax developments, delves into the recent G7 agreement altering the global minimum tax. She explains the significance of the U.S. exemptions and the complexities this introduces. The podcast also discusses Canada's repeal of its digital services tax to rekindle trade talks with the U.S. Vella highlights the backlash from other nations feeling pressured to comply with U.S. changes and the broader implications for global tax reform in a shifting political landscape.

In this discussion, Christina Ho, a PCAOB board member, shares her insights from her tenure at the Treasury and supports SEC oversight for auditors. Joining her are whistleblowers Cynthia Cooper and Sherron Watkins, who gained fame for exposing corruption at WorldCom and Enron, respectively. They debate the crucial role of the PCAOB and warn against legislative efforts to dissolve it. The trio emphasizes audit independence, the significance of strong oversight, and the lessons learned from corporate scandals, while navigating ongoing regulatory challenges.

The Republican-led Senate Finance Committee unveiled its portion of the mammoth tax-and-spending legislation that's quickly moving through Congress, and there's a lot to unpack. The Senate bill has dozens of differences from the House version. It makes several business breaks permanent, softens the excise tax on university endowments, and phases out more slowly cuts to clean energy credits, while smoothing edges on the so-called "revenge tax." But there are many similarities in the approaches the two bills take—both have tax breaks on income such as tips and overtime sought by President Donald Trump, and seek to extend much of the 2017 GOP tax law. Things are moving quickly as the Senate aims to pass its version out of its chamber before the July 4 break. In this week's episode of Talking Tax, Bloomberg Tax reporter Chris Cioffi speaks with host David Schultz on what's in the bill, what's left out, and where Congress goes from here. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Namaan Mian, Chief Operating Officer at Management Consulted, discusses the recent wave of layoffs at Big Four accounting firms amidst economic uncertainty. He highlights the vital need for new graduates to develop tech and communication skills to remain competitive. Mian emphasizes the challenges of recruiting in a tightened job market and the rise of AI's role in the industry. Additionally, he sheds light on how accounting education must adapt to equip students for these shifting demands, while also exploring potential opportunities in smaller firms.

In this discussion, Bloomberg Tax senior reporter Michael Rapoport brings insights into the controversial Section 899, also known as the 'revenge tax.' He explores how this proposed tax could impose harsh rates on countries the US considers unfair in their taxing practices. Concerns arise over potential job losses and diminished foreign investment in the US economy. Rapoport also highlights how this measure might tarnish the US's reputation as a business-friendly environment while stirring up debates over its diplomatic implications.

Lauren Vella, a tax policy and legislation reporter at Bloomberg Tax, dives into the implications of a recent House-passed tax bill. She discusses how it preserves current tax rates on foreign-earned income, originally shaped by the 2017 Tax Cuts and Jobs Act. Vella highlights the mixed reactions from businesses and the potential changes anticipated in the Senate, particularly regarding GILTI and other international provisions. The conversation also touches on how these tax adjustments could affect U.S. relations globally and the implications of the Byrd Rule.