Talking Tax

Senator Chuck Grassley (R-Iowa) will retake the helm at the Senate Finance Committee next Congress, succeeding current Chairman Orrin Hatch (R-Utah), who’s retiring. Under Grassley’s leadership—he led the committee twice before in the early and mid-2000s—the committee is expected to focus on trade, tax policy, healthcare, and oversight issues. Bloomberg Tax’s Allyson Versprille discusses what’s on tap for the tax-writing panel in 2019 and potential tax items that could be addressed in the lame-duck session before Grassley takes over. Host: Amanda Iacone Producer: Nicholas Anzalotta-Kynoch

In the first episode of The Over/Under, Bloomberg Tax’s Ryan Prete explains the history of outlawed sports betting in America and the U.S. Supreme Court’s recent reversal of the ban. Prete sits down with Richard Auxier of the Tax Policy Center to discuss early tax revenue figures from legalized sports betting, and whether sports betting could serve as an “end all” to state fiscal woes. Prete also talks with Sara Slane of the American Gaming Association about the possibility of a federal sports betting framework. Host: Ryan Prete. Producer: RJ Jewell and Nicholas Anzalotta-Kynoch.

Artificial Intelligence and Big Data are terms that are in the news. Tax practitioners should be aware that the IRS is using these methods to mine for information, and that could impact whether and how their clients are audited. Carina Federico of Crowell Moring, Michelle Schwerin of Capes Sokol, and Travis Thompson of Sideman & Bancroft join Bloomberg Tax’s Andrea L. Ben-Yosef to talk about where IRS is getting its data, how the use of AI will impact enforcement, and what practitioners should be doing now. Host: Andrea Ben-Yosef

Congress will look very different when it gavels in next year with a new House Democratic Majority and an expanded Republican Senate. On this special post-election episode of “Suspending the Rules”—brought to you by Talking Tax— reporters and legislative analysts break down the implications of a divided Congress for a variety of key issues. In this episode: • Bloomberg Government senior congressional reporter Nancy Ognanovich dives into the election returns and dynamics in the new Congress. • Bloomberg Government health policy reporter Shira Stein discusses what’s in store for the Affordable Care Act, “Medicare-for-All,” and drug pricing. • Bloomberg Government homeland security reporter Michaela Ross reviews potential moves on immigration. • Bloomberg Environment editor Rob Tricchinelli talks about what the election could mean for climate policy and environmental regulations. • Bloomberg Tax reporter Stu Basu discusses Democrats’ tax priorities and plans to seek President Donald Trump’s tax returns.

Opportunity zones and opportunity funds were created by the 2017 tax act to encourage business investment in low-income communities. They have attracted a lot of interest because of the tax incentives, including exclusion and deferral of capital gains. IRS released proposed regulations on October 19 that gave practitioners some answers. Bradley T. Borden, a professor of law at Brooklyn Law School, and Alan S. Lederman, a shareholder at the Florida law firm of Gunster, join Bloomberg Tax’s Andrea L. Ben-Yosef in describing these opportunity zones and funds, how practitioners can take comfort in going forward with many of these transactions, what the IRS still needs to address. They also examine how these proposed regulations may influence a taxpayer’s decision to use qualified opportunity funds as a way to replace real estate that is sold on a tax-deferred basis, instead of using a Section 1031 like-kind exchange. For more information, see the article in the Bloomberg Tax Real Estate Journal, Rolling Real Estate Gain into a Qualified Opportunity Fund: Comparison with §1031, by Alan S. Lederman and and Bradley T. Borden (Sept. 5, 2018). Link: https://www.bloomberglaw.com/product/tax/document/XDPG43TG000000.

Intel subsidiary Altera Corp.'s cost-sharing structure—and that of other Silicon Valley companies—lies in the hands of one appellate court judge: Susan Graber. The judge's questioning during recent oral argument in the company’s dispute with the IRS could signal a victory for the government, but all agree Altera probably wouldn’t take that lying down. Will the company find itself at war again over whether it’s going to be forced to include stock compensation in its U.S. taxable income? And what about the controversy sparked over handling opinions by judges who die or otherwise become unavailable before the court is done with a case? In this week’s special edition of Talking Tax, Bloomberg Tax reporter Sony Kassam and legal editor Carolina Vargas get reactions to this second go-round in the Ninth Circuit and take a look at what's ahead. This episode features Patrick Smith, a partner at Ivins, Phillips & Barker; Barbara Mantegani, a tax adviser and founder of Mantegani Tax; Calvin Johnson, a professor at the University of Texas in Austin; and Susan Yorke, an attorney at the California Appellate Law Group. This episode is the final part of a three-part series examining the case. Hosts: Sony Kassam and Carolina Vargas Producer: Nicholas Anzalotta-Kynoch

Several lawmakers on tax-writing committees in both chambers of Congress are facing tough races in the November midterm elections. The outcome of those races will dictate the tax agenda through the end of the year and into 2019. Bloomberg Tax’s Allyson Versprille and Kaustuv Basu discuss the path forward for both the House and Senate, legislation that is dependent on the political party in control, and the tax policies that may move forward regardless of the election outcomes. Host: Amanda Iacone. Producer: Nicholas Anzalotta-Kynoch.

Intel subsidiary Altera Corp. and the Internal Revenue Service will meet again this month in the 9th Circuit in a case watched by Facebook, Google, and others. A loss for the computer chip-maker could be detrimental to Silicon Valley. A central question in the case turns on the complicated question of allocating costs. But is the case anything more than procedural foofaraw? And was it appropriate for the court to withdraw a previous opinion and replace a deceased judge five months after his death? In this week’s special edition of Talking Tax, Bloomberg Tax reporter Sony Kassam and legal editor Carolina Vargas get the answers to these questions and more. This episode features Susan Yorke, an attorney in the Ninth Circuit; Barbara Mantegani, a tax advisor and founder of Mantegani Tax; and Calvin Johnson, a professor at the University of Texas in Austin. This episode is part two of a three-part series examining the case. Hosts: Sony Kassam and Carolina Vargas. Producer: Nicholas Anzalotta-Kynoch.

The House will turn its attention to the tax cut 2.0 package this week, with a floor vote possible during the latter half of the week. The House is also eyeing a vote on a budget bill that will fund the Internal Revenue Service through Dec. 7. And a Ways and Means subcommittee hearing on Sept. 26 will focus on how the IRS uses online tools to protect taxpayers. Bloomberg Tax’s Kaustuv Basu talked to Amanda Iacone about upcoming tax action on Capitol Hill. Host: Amanda Iacone. Producer: Nicholas Anzalotta-Kynoch

House Speaker Paul Ryan (R-Wis.) wants the House to vote by the end of the month on a second round of tax cuts known as Tax 2.0. The package would make some of the temporary provisions in the 2017 tax law permanent and create new retirement and innovation tax incentives. But GOP leaders could face resistance from some members in their party opposed to making the cap on state and local tax deductions permanent. During this episode of Hill Roundtable, Bloomberg Tax’s Allyson Versprille and Kaustuv Basu talk to Amanda Iacone about Tax 2.0 and more. Host: Amanda Iacone. Producer: Nicholas Anzalotta-Kynoch