Talking Tax

The IRS's new unit to tackle pass-through entity tax-law enforcement could take years to stand up fully and for businesses to feel its impact in the form of tougher audits.The push comes after years of concern among IRS officials that the agency lacked the expertise and resources to enforce laws around pass-through entities such as large partnerships, sparking fears some companies were manipulating the rules to pay less than they owed. But setting up and staffing up the new unit won't be easy.On this episode of Talking Tax, Mary McNulty, a partner at Holland and Knight LLP, spoke to Bloomberg Tax about the purpose of the new unit and what it has to do to be successful."The wild card here is funding," she said. "So if Congress continues to cut the $80 billion of additional funding to the IRS and reduces the resources again to low levels then the IRS will lack the resources to carry out this strategic initiative, so time will tell.”Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Experts discuss the challenges of taxing cryptocurrencies and NFTs, the reliance on voluntary compliance, and the limited enforcement. IRS initiatives to tackle the tax gap in virtual currencies and the lack of clarity in state taxation of digital assets are also discussed. The chapter highlights the volatility of markets for NFTs and cryptocurrencies, the need for regulatory and tax clarity, and the potential of the digital assets space. The necessary adaptations that states should make in terms of regulation and taxation for cryptocurrencies and digital assets over the next five years are emphasized.

Overhauling how the IRS audits low-income taxpayers is a critical step toward more fair audits, many in the industry acknowledged following the agency's announcement earlier this month.The IRS promised that it would "substantially" reduce audits on refundable tax credits that benefit low-income taxpayers, such as the earned income tax credit. That change follows a study released in January that found Black taxpayers claiming the EITC were audited at higher rates than non-Black taxpayers claiming the credit.Former National Taxpayer Advocate Nina Olson, now executive director of the Center for Taxpayer Rights, spoke with Bloomberg Tax's Erin Slowey about the impact the audit shift will have on low-income taxpayers and the landscape for claiming the EITC leading up to this announcement."It is the difference between being able to have medical care or being able to pay rent or even if you're homeless, putting a deposit down and first month's rent on an apartment," Olson said. "It's life-changing funds."Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The new CEO of Deloitte's tax practice is grappling with many of the same challenges as the Big Four firm's clients: rapid shifts in how tax practitioners work thanks to artificial intelligence, a shortage of skilled staff, and reforms that will impose a new global minimum tax.Companies are starting to get their arms around the new rules that will impose a 15% global minimum tax and whether they should tackle implementation in-house or seek outside help, said Carin Giuliante, chair and CEO of Deloitte Tax LLP.Giuliante, the first woman to lead the firm’s US tax practice, took the helm in June and pledged to provide a “digital experience” to clients and to invest in training and career development for the firm’s professionals.She spoke to Bloomberg Tax & Accounting senior reporter Amanda Iacone about new Internal Revenue Service regulations for cryptocurrency assets, how artificial intelligence is reshaping the tax practice, and the firm’s ongoing commitment to diversify and support its workforce.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Sports betting is in more states than ever, with new gamblers every day wagering in person and over the internet. And the new NFL season is expected to drive up tax revenue even more in the 30 states—plus Puerto Rico and Washington, D.C.—that have legalized sports betting since a 2018 US Supreme Court ruling overturning a federal ban.States collected an estimated $3.62 billion in direct gaming taxes generated in the second quarter, a 9.6% increase over the second quarter of 2022, according to a recent report from the American Gaming Association. While most states impose taxes ranging from 10% to 15%, some, like New York, take as much as 51% from sportsbooks.SportsHandle senior analyst Chris Altruda spoke with Bloomberg Tax reporter Angélica Serrano-Román about the approaches states have taken to taxing sports betting and those allowing operators to deduct so-called "free bets," which some states are starting to limit.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Congress' tax writers return to Capitol Hill with several priorities that remain unaddressed, as September shapes up to be a busy month with tax policy firmly in the mix.On the second part of a two-part podcast series looking at Congress as it returns from its August recess, we discuss the status of House Republicans' tax package and what would have to happen to get a bipartisan pact extending business tax breaks and enhancing the child tax credit. We also talk about GOP lawmakers' trip to Europe to meet with financial officials from the OECD and Germany, and the progress being made on a bipartisan Taiwan tax bill in September.Host David Schultz breaks down all this and more with Bloomberg Tax Congress reporters Chris Cioffi and Samantha Handler, running through the tax items on lawmakers' agenda.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The podcast discusses the IRS's $80 billion windfall and how Congress is now taking back some of that money, potentially impacting the agency's modernization plans. The funding issues faced by the IRS and their impact on compliance and enforcement are explored. The episode also previews the next season's focus on a potential ban on non-compete clauses.

AI is becoming a 'co-pilot' for tax professionals, automating tax filings and compliance. Generative AI is democratizing the technology for tax professionals. AI helps companies tell their tax stories, plan taxes, and navigate global tax rules. KPMG invests in training professionals and responsible AI practices. AI is transforming corporate tax departments and directors need to stay proactive.

July was a big month for the OECD, marking its release of a tranche of documents detailing progress on the global tax deal agreed to by more than 130 countries in 2021.The agreement includes reallocation of the residual profits of large multinational companies to market jurisdictions, known as Pillar One, and a 15% global minimum tax, known as Pillar Two.On this week’s episode of Talking Tax, Bloomberg Tax reporter Lauren Vella speaks with Manal Corwin, director of the OECD's Center for Tax Policy and Administration, about nuances of the latest guidance and next steps to move the deal forward.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Demand from clean energy and corporate clients looking to secure their share of credits from the tax-and-climate law is helping boost tax and law firms' footprints.The Biden administration’s 2022 Inflation Reduction Act offers tax incentives to accelerate the US's transition into renewable energy. The tax credits from the law give companies and investors stability for at least the next 10 years."It really put a stamp of approval on these transaction structures and the interest of the administration in exploring and facilitating the growth of renewable energy project development," Alexander Leff, partner at international law firm Clifford Chance, said in an interview.Those looking to benefit from those tax credits are leaning on these firms as the IRS and Treasury Department continue to release guidance on the law's provisions.On this week's episode of Talking Tax, Bloomberg Tax reporters Pavithra Rajesh and Erin Slowey talk with Leff about the wider implications of these clean energy provisions. He also discusses Clifford Chance's recent expansion into Houston—a move the company had planned before the Inflation Reduction Act, but one he called "a natural extension" for the firm's energy portfolio.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.