Talking Tax

Most of the banks that failed or came close to it this spring had one thing in common: They had recently received a clean bill of health from their auditor, KPMG.This development has caused major problems for the Big Four auditing firm and has shareholders, regulators, and even lawmakers asking KPMG tough questions.On this week's episode of our podcast, Talking Tax, Bloomberg Tax reporter Amanda Iacone talks about her reporting into KPMG's troubles and why this newest accounting scandal, just one of many over the past two decades, has stirred up concern for many in the profession.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The OECD's global tax deal is approaching a milestone: The organization expects to see the release this summer of major remaining pieces of the agreement that have been under negotiation.But throughout the process, many developing countries have felt their concerns weren't sufficiently addressed, said Marlene Nembhard-Parker, a senior tax official in Jamaica who is also co-chair of the Inclusive Framework of 143 countries working on the global tax agreement.Meanwhile, the United Nations also has a new international tax effort in the works. That project isn't intended to duplicate or undermine the OECD's work, she said, but to "address the issues of legitimacy as to who is responsible for setting global tax rules."On this week's Talking Tax, Nembhard-Parker speaks about developing countries' perspective on the agenda and outcomes of the OECD and UN work, and why the commitment from governments to reach agreement on Pillar One creates a sense of "cautious optimism."Nembhard-Parker's remarks are part of a pre-recorded interview aired during the Bloomberg Tax Leadership Forum, held virtually Tuesday. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Minnesota lawmakers just finished a historic legislative session that achieved something rarely seen in the state tax arena—a budget featuring both the biggest tax cut and the biggest tax hike in state history. The resulting tax overhaul measure includes $3 billion in tax relief from one-time refunds, tax credits, and a tax waiver on most Social Security income. But it also raises $1 billion through a tax on the earnings of foreign subsidiaries of multinational corporations and a new levy on individuals with investment income over $1 million.The state's lawmakers also made headlines for first passing and then rescinding a plan to calculate corporations' state income taxes on the basis of their worldwide income. The controversial plan would have made Minnesota the only state to abandon “water’s edge” rules, which permit businesses to exclude foreign affiliates’ income when they file their state income tax returns.On this episode of Talking Tax, Bloomberg Tax senior reporter Michael J. Bologna discusses this consequential legislative session with Rep. Aisha Gomez (D), chair of the House Taxes Committee. Gomez, a progressive in her third term, discusses the practical, political, and personal challenges she had to overcome in delivering the tax package.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

What does it mean to be a good tax leader, as an in-house tax professional or as a tax adviser who wants to make the tax functions of your clients better? How do you build a great team?Bloomberg Tax Insights editor Rebecca Baker sat down with Jared Dunkin, the vice president of tax and senior tax counsel at FTI Consulting, and Dunkin's mentor and former boss, Todd Davis, the executive vice president and senior tax counsel for Warner Bros. Discovery, to find some answers to these questions.Dunkin and Davis discuss how to handle the ambiguity of tax when corporate executives—their bosses—demand certainty, how to wage the war for talent, and how to set priorities for their tax teams, particularly when it comes to cross-border tax work.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Note: This episode originally aired May 19, 2022.Automation tools increasingly used by seasoned tax professionals are helping to take some of the pain and manual labor out of routine compliance work.That futuristic tech goes beyond robotics process automation and can link together the many programs and platforms that accountants rely on everyday. Those building blocks can automate every step in the tax process from onboarding clients to tax return delivery, according to John McGowan, the CEO of Hubsync and former chief information officer for two Big Four tax practices.On this episode of Talking Tax, McGowan talks to Bloomberg Tax about the challenges that firms face in adopting new ways of working and how it can not only help get work done faster but could make CPA firms more attractive to job candidates and clients alike.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Puerto Rico lawmakers say a tax plan backed by Gov. Pedro Pierluisi still falls short of being the long-sought tax overhaul the island desperately needs.After years of modifications, Puerto Rico still has one of the most complex tax systems in the US, with over 400 tax breaks, deductions, credits, and exemptions.The Democratic governor presented a proposal earlier this year that would lower income taxes for both individuals and corporations and simplify the US territory's tax code. The Senate says it’s working on a counter-proposal but has provided few details.Bloomberg Tax’s Angélica Serrano-Román and Bloomberg News’ Jim Wyss sat down with Kenneth Rivera Robles, a tax partner at Galíndez LLC and treasurer of the board for Puerto Rico's Manufacturers Association, Sen. Juan Zaragoza Gómez, president of the Puerto Rico Senate’s finance committee, and Ella Woger-Nieves, the CEO of Invest Puerto Rico.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

New IRS Commissioner Danny Werfel has a lot on his plate.He is tasked with effectively spending the IRS's new $80 billion in Inflation Reduction Act funds and ensuring the agency has smooth tax-filing seasons, while also needing to respond to questions and concerns from Congress.On this episode of Talking Tax, Werfel talks to Bloomberg Tax's Naomi Jagoda in his first podcast interview since his confirmation in March. Werfel talks about his goals for his first six months on the job, how he plans to keep Congress informed about the agency's work, how he plans to improve trust in the agency, and more.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The Treasury Department and IRS were given big opportunities—and big responsibilities—with the enactment of last year's Inflation Reduction Act.The tasks ahead include issuing guidance on various clean-energy provisions in the tax-and-climate law. The Biden administration and congressional Democrats say the provisions will help to reduce greenhouse gas emissions and create more domestic jobs, but Republicans have raised concerns that the provisions are expensive and mostly benefiting large businesses.On this episode of Talking Tax, Bloomberg Tax reporter Naomi Jagoda talks to Deputy Treasury Secretary Wally Adeyemo, a key player in implementing the law, about the status of guidance on the energy provisions and Republicans' criticism of the tax breaks.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

After working in Big Four accounting firms, Carmela Walrond decided to work for herself, motivated by a desire to help small business taxpayers."There's no better feeling than helping someone save lots of money in taxes," says Walrond.Walrond is a partner at JLD Tax Resolution Group and an entrepreneur based in New Jersey. After working in accounting and immigration law, Walrond established her own tax practice in 2019 helping individuals resolve back tax issues. She then merged with JLD Tax to launch a combined practice in 2020. The small business helps clients settle cases with the IRS, including assisting on preparation for audits, entity formation, and other tax services.Walrond reached out to Talking Tax after listening to an episode from February.For this episode, Walrond chats with legal reporter Jeff Leon to share her experiences as a woman of color advising small businesses and what's on her radar for 2023.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

The focus of the House Ways and Means tax subcommittee will be oversight, according to the panel’s new head Rep. Mike Kelly (R-Pa.)Kelly took over the subcommittee that oversees tax policy after Republicans gained control of the House this year. Kelly has introduced legislation that would impose new reporting requirements on the IRS’s use of the $80 billion in funding it received from the Inflation Reduction Act, as well as other bills that similarly target the IRS.On this episode of Talking Tax, Kelly speaks with Bloomberg Tax reporter Samantha Handler about his subcommittee’s agenda, including how he’ll work in lockstep with Rep. David Schweikert (R-Ariz.), the head of the oversight subcommittee, and what tax policy he’d like to see move this Congress.Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.