Talking Tax

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.

House Republicans are moving quickly to get a massive tax-and-spending package across the finish line before week's end even as they negotiate with party factions over outstanding concerns. Some Republicans are demanding deeper cuts to social programs like Medicaid to curb deficits as part of the deal and to reduce the package's cost to extend the 2017 tax overhaul. And yet the bill increases the debt limit by $4 trillion and adds billions in spending. Cut out of the process, Democrats oppose the proposal, and even some Republicans have objected to its size and scope. Regardless of where lawmakers fall on the political spectrum, they all seem to agree on one data source: What the Committee for a Responsible Federal Budget has to say about the package and what it will do to the national deficit, which now stands at over $36 trillion. On this episode of Talking Tax, Bloomberg Tax reporter Chris Cioffi talks with Maya MacGuineas, longtime president of the nonprofit public policy group, and digs into why the growing debt can be problematic for future economic growth. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Caroline Ciraolo, a partner at Kostelanetz and former No. 2 at the DOJ Tax Division, dives into the shift from government to private sector tax work. She discusses a new initiative connecting laid-off IRS professionals to law firms, emphasizing the passion and transferable skills that benefit both sides. Ciraolo shares insights on navigating career transitions, the importance of effectively highlighting IRS experience on resumes, and encourages future tax professionals by showcasing the enduring demand in the field despite challenges.

The IRS is facing significant upheaval as over 20% of its workforce exits, raising concerns about taxpayer services and data security. With a high turnover rate, leadership changes are reshaping the agency, particularly affecting its ability to regulate digital assets. The departures of key executives complicate efforts to maintain compliance and stability. As the IRS leans more on technology to fill gaps, the implications for individual taxpayers and overall revenue collection loom large. Listen for insights into this turbulent period for the agency.

House Republicans are pushing a plan to dismantle the US audit board and send its watchdog duties to the Securities and Exchange Commission as part of a federal budget-cutting process. It's not the first GOP attempt to rein in the Public Company Accounting Oversight Board, but this time it comes against the backdrop of the Trump administration's sweeping drive to cut regulations and downsize government. Congress set up the board in the early 2000s to restore investor trust following high-profile corporate accounting scandals at Enron Corp. and WorldCom Inc. The move to eliminate PCAOB threatens to derail independent oversight of auditors charged with vetting the financial reports of public companies worth trillions in stock value, according to Bloomberg Tax senior reporter Amanda Iacone. On this episode of Talking Tax, Iacone speaks with Benjamin Freed, Bloomberg Tax team lead for state tax and financial accounting, about why the PCAOB is being targeted now, previous attempts to curb its influence, and what a potential disbanding could mean for audit firms. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Before leaving for a two-week break, House Republican lawmakers adopted a Senate budget outline to expedite legislation to push through trillions of dollars in tax cuts, raise the debt ceiling, and slash billions in spending.Now comes the hard part where policy committees need to fill in the fine details. The Senate framework called for $1.5 trillion in new tax cuts, to enact policies like some proposed by President Donald Trump on the campaign trail.The Senate's use of a so-called current policy baseline wipes away, on paper, trillions of dollars expected to add to the deficit from extending the expiring parts of the GOP's 2017 tax law.The House is seen as taking the lead, with Speaker Mike Johnson (R-La.) publicly aiming for a Memorial Day deadline to get a bill on Trump's desk. In this episode of Talking Tax, Bloomberg Tax federal editor Kim Dixon talks to congressional reporters Chris Cioffi and Zach Cohen about what to expect in the next work period.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Deep cuts to the IRS workforce mean the agency might have to rely more heavily on technology to keep up taxpayer services and enforcement. The IRS is set to lose 20,000 workers after the Trump administration's second deferred resignation offer. That's in addition to thousands who have already left or are on administrative leave. Barry Johnson, former IRS chief data and analytics officer, oversaw the rollout of artificial intelligence at the agency before his retirement in January. When he left, he said the IRS was piloting an AI tool to help employees search the Internal Revenue Code. The agency also used AI to improve taxpayer services, such as with chatbots, and to make enforcement more efficient.But the workforce cuts could hinder that progress, Johnson said."I'm especially concerned with proposed cuts in what we call the field staff, the folks who process tax returns and conduct audits," he said. "Because to the extent that we lose that subject matter expertise, our ability to train and validate AI applications will be diminished."In this episode of Talking Tax, Johnson talks to Bloomberg Tax reporter Erin Schilling about the challenges of relying on technology with a shrunken staff, how the research division uses taxpayer data while upholding confidentiality, and what it means for the agency when top executives leave.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Michael Plowgian, a partner at KPMG and former Deputy Assistant Secretary for International Affairs, joins Will Morris, global tax policy leader at PwC. They dive into the Trump administration's departure from the OECD’s global tax deal and its implications for international finance. The discussion reveals how rising tariffs may prompt countries to favor bilateral agreements over multilateral cooperation. They dissect the complexities of digital services taxes and highlight the tangled web of U.S. policies impacting global tax negotiations.