Talking Tax

Looking forward to a mint julep on Kentucky Derby Day? You might be interested to know that a bit of each bourbon-soaked cocktail funds school districts, police departments, and other local services in the Bluegrass State. The money flows through Kentucky’s one-of-a-kind bourbon barrel tax, a levy on spirits aging in barrels. It’s a big deal for distillers, who must pay the tax, and municipalities, which derive significant revenue from the roughly 11 million barrels of bourbon inventoried across Kentucky.That could change soon. After a Bourbon Barrel Taxation Task Force studied the matter last year, senior lawmakers recently introduced legislation to gradually phase out the tax until it's eliminated in 2039 with the aim of giving local jurisdictions time to adjust to lost revenues.On this episode of Talking Tax, Bloomberg Tax senior reporter Michael J. Bologna digs into the unusual history of the tax and the current efforts to repeal it with Mark F. Sommer, tax practice group leader with Frost Brown Todd LLP in Louisville. BONUS: Sommer shares his mint julep recipe! (Derby Day is May 6, in case you haven't put it on your calendar yet. )Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

California cities have made deals with retailers—Best Buy Co. Inc., Apple Inc., QVC, Walmart Inc., and others—to be the point of sale for statewide e-commerce purchases in exchange for a cut of the sales tax proceeds. But who really benefits?On this episode of Talking Tax, senior reporter Laura Mahoney sits down with Bloomberg Law editor Bernie Kohn to talk about her closer look at Dinuba, a small city in California's Central Valley, and its tax-sharing deal with Best Buy. Dinuba gives half of its influx of sales tax money to Best Buy and 10% to the lawyer who brokered the deal. Tens of millions of dollars are involved in an agreement that will last 40 years.They discuss what Dinuba's deal with Best Buy means for its fiscal health and quality of life compared with its neighbors, and how the tension between the haves and have-nots is part of a statewide debate about sales tax rules in California.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Tax practitioner Tifphani White-King is strongly invested in increasing diversity and equity in the world of tax."I don't lose sight of the fact that I don't see many people that look like me in this field," she said.White-King, principal at Mazars USA, has over two decades of experience in tax, and as a Black woman, has extensive experience navigating a historically white male-dominated profession to become a leader in tax.She chatted with Bloomberg Tax reporter Jeff Leon to share more about her experiences in the profession, lessons learned, and being a woman of color in tax. White-King shares insights on how tax organizations can meaningfully level the playing field and embrace the strength of a diverse workforce, and where she sees the tax profession going.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

State sales taxes are now a fact of life for online buyers and sellers, since the US Supreme Court's 2018 Wayfair decision created a framework for remote-sales tax collection. It might look simple to customers, but for remote sellers and sales platforms—especially small businesses—the massive patchwork of state and local sales tax regimes can be daunting.How much of an "undue burden" on interstate commerce is the patchwork, and should Congress intervene to reduce the inconsistencies across sales tax regimes without stepping on state sovereignty? Some, including the US Government Accountability Office, have suggested it.This episode of Talking Tax explores the complicated requirements businesses have to deal with and the steps roughly half the states have taken to simplify their sales tax codes and streamline their processes.Bloomberg Tax senior reporter Michael J. Bologna speaks with Craig Johnson, executive director of the Streamlined Sales Tax Governing Board, which administers a 24-state compact that strives for state sales tax harmony, and Diane Yetter, a self-described "sales tax nerd" and founder of the Sales Tax Institute, which educates and advises businesses. They were among witnesses at a Senate Finance Committee hearing last year on Wayfair impacts.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Tax transparency is on the rise, and companies are figuring out how to adapt.Large multinationals will soon have to publicly report their tax information in the EU. The pressure for more information isn't just coming from governments. Investors, too, are pushing for greater disclosure of companies' tax arrangements.Companies have long worried that reporting their tax information could set them up for a reputational hit. But now, with public reporting requirements on the horizon, some are choosing to put the information out themselves ahead of the mandate.KPMG's Anu Varadharajan sat down with Bloomberg Tax's Isabel Gottlieb to talk about why the tax transparency measures worry companies, and what they're doing to prepare for the requirements.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Though never popular with neighboring state officials, New York's tax on the income of out-of-state residents working for Empire state companies is being scrutinized more closely. A post-pandemic shift to remote work — as a choice by either the employee or employer — has meant that many former commuters rarely if ever set foot in a New York workplace.There are winners and losers in the current situation and billions of dollars at stake. Officials in both New Jersey and Connecticut have recently revived efforts to keep their resident's income taxes within their own borders regardless of where the person works.New York isn't expected to relinquish these revenues without a fight. The state got roughly 17% of its income tax revenue from non-residents in fiscal 2020.On this episode of Talking Tax, our weekly podcast, podcast producer David Schultz talks with Andrew Silverman, a tax policy analyst for Bloomberg Intelligence, about the particular dynamics of the tri-state region. Silverman also examines why the US Supreme Court opted not to weigh in on a similar challenge by New Hampshire to end a Massachusetts commuter tax in 2016, how remote work impacts what's called the "convenience-of-the-employer" rule, and why this disagreement between a number of states will be up to the high court resolve.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The $80 billion in new funding the IRS will get over the next decade offers a chance "to bring US tax administration into the 21st century," according to National Taxpayer Advocate Erin Collins.Collins leads the Taxpayer Advocate Service, an independent office within the agency that provides taxpayer assistance. She's written multiple blog posts about modernization efforts and sent a report to Congress discussing her vision for a revamped, paperless tax enforcement agency.On this episode of Talking Tax, Collins speaks with Bloomberg Tax reporter Aysha Bagchi about key recommendations for how the agency can improve taxpayer services using the additional funding authorized by the Biden administration's sweeping tax-and-climate bill.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The IRS and Treasury pushed back the effective date for brokers forced to report client transactions to the IRS, giving the cryptocurrency industry some relief as they wait for more guidance.There are still a lot of unknowns about how to report and what exactly is required—answers the industry anticipates in new guidance.On this episode of our Talking Tax podcast, Bloomberg Tax reporter Erin Slowey speaks with Deloitte's Jonathan Cutler, a senior manager, and Rob Massey, global and US tax blockchain and digital assets leader, about the crypto reporting landscape here in the US.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

All eyes are on the IRS in 2023, as the cash-strapped agency is finally getting an $80 billion infusion, with potential big implications for the tax world.Bolstered by the additional multiyear funding in the Inflation Reduction Act, the agency plans to upgrade its outdated systems, staff up, and take bolder steps toward enforcement, aiming largely at big companies and high-wealth taxpayers.Bloomberg Tax reporter Jeff Leon talks about the prospects with Niles Elber, a tax professional at Caplin & Drysdale who has been following the developments closely. The IRS has a tall order, Elber says. He talks about how the agency might deploy the funds, and the biggest areas of need, from hiring to enforcement.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Congress was busy on tax policy in 2022, and that means the IRS will have work to do this year. The agency has issued some guidance clarifying the Inflation Reduction Act's tax provisions, but it has lots more that needs to get out in the coming weeks and months.On this episode of our weekly podcast, Talking Tax, we hear about the big-ticket items the IRS needs to get out the door from three Bloomberg Tax reporters: Erin Slowey, Lauren Vella, and Naomi Jagoda. We also discuss the IRS's plans to spend the nearly $80 billion in federal funding Congress granted—funds that could make this year's filing season go more smoothly.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.