Talking Tax

Many people are now working and living away from their usual homes or offices, either by choice or otherwise, as they wait out the spread of the coronavirus. In which jurisdiction do these people pay taxes? On this episode of Talking Tax, reporters Isabel Gottlieb and Siri Bulusu look at why this is a huge headache not just for taxpayers but also for their employers, who may have to start withholding in states they've never withheld in before. They also talk about the even more complicated issue of people who are working remotely from another country.

The months of self-isolation and social distancing are beginning to weigh on all of us, and tax professionals are no different. On today's episode of Talking Tax, we hear from four different accountants about the new stresses they're facing and how they're managing to cope. Talking Tax host Amanda Iacone speaks with a nearly 40-year veteran of the industry, the owner of a husband-and-wife practice juggling her firm and her five kids, and more. We learn how work practices have been forced to change and about how the crisis has made it imperative that tax professionals shift their role from accountant to adviser. Producers: Amanda Iacone and David Schultz

Many tax chiefs at international companies are struggling to figure out the implications of the trillions of dollars of stimulus funds countries have injected into their economies in recent months. But Kate Barton, the global vice chair of tax at EY, says they should also be looking out for the ensuing hangover: an inevitable series of tax hikes that will be needed to pay for all of this. Barton spoke with Talking Tax host Siri Bulusu about what firms' tax managers should be watching as the global economic response to the coronavirus pandemic continues to unfold.

Another day, another multi-billion dollar emergency spending bill clears Congress. On this episode of our podcast, Talking Tax, congressional reporter Colin Wilhelm talks about why the legislation passing today is more of a stopgap measure, and how a larger bill that could have significant impacts on the tax code is likely just over the horizon.

Some accounting firms that delayed or deprioritized adopting new technology are now finding that their slow-and-steady strategy is no longer an option. The remote work necessitated by the coronavirus pandemic is forcing these firms to go digital—and fast. On today's episode of Talking Tax, host Amanda Iacone talks with Garrett Wagner, a CPA who also runs a consulting firm that helps accountants upgrade their tech. He says the firms that are behind in their remote work capabilities may need to partner with—or, in some cases, be outright taken over by—other firms that are stronger in this area.

Many tax professionals plan their entire years around this upcoming Wednesday, April 15—also known as Tax Day. But things will be different this year. The IRS has delayed the filing and payment deadlines for federal taxes by three months to give tax payers and tax preparers more time to deal with the fallout from the ongoing coronavirus pandemic. And while this extra time was certainly welcomed, it does mean that this filing season will be unlike nearly any other most CPAS have experienced. On this episode of Talking Tax, we talk to Ed Karl, vice president at the American Institute of Certified Public Accountants, about what this sudden schedule change means for tax preparers. (Note: This interview with Karl was recorded on April 8, before the IRS moved back many of its filing deadlines for things like trusts and estates.)

This would normally be the time when most companies would be closing their books for the first quarter and getting ready to report their earnings. But now, with the coronavirus pandemic in full force, many companies are simply struggling to survive and operating with a skeleton crew. On this week's episode of our podcast, Talking Tax, we hear from Todd Castagno, a tax and accounting analyst for institutional investors at Morgan Stanley. He tells Talking Tax host Amanda Iacone about the challenges companies are facing in communicating with investors when many are having a hard time even quantifying their own assets. Producer: David Schultz.

Congress and federal agencies are taking steps that, until recently, would have been unthinkable in an attempt to mitigate some of the economic damage wrought by the coronavirus pandemic. On this episode of Talking Tax, we hear from reporter Allyson Versprille about whether the IRS is doing enough to make life easier for taxpayers—and for its own employees. And Bloomberg Tax's Colin Wilhelm talks about how Congress' $2 trillion spending package is essentially a "bridge loan for the American public."

Small businesses are still struggling to deal with the chaos that resulted from the Supreme Court's Wayfair decision less than two years ago. Rep. Andy Kim (D-N.J.) is one of the people hoping to bring order from this chaos for small businesses. On this episode of our podcast, Talking Tax, we speak with Kim, the chairman of a House Small Business subcommittee that handles tax issues, about how the Wayfair decision is affecting businesses in his district and elsewhere, and about whether Congress is inclined to address their problems.

These are trying times for CFOs at companies both large and small. Ash Noah, a former CFO for a global logistics company, says it reminds him of the Great Recession, the 9/11 attacks, and the Gulf War all rolled into one. On this special coronavirus episode of our Talking Tax podcast, we hear from Noah, now a managing director at the Association of International Certified Professional Accountants, about what CFOs need to be doing now to respond to the pandemic and about what the federal government should be doing to help keep companies' finance departments above water.

The ink from the President’s signature was barely dry on last year’s SECURE Act before many of its provisions went into effect, forcing companies to change the way they manage their employees’ retirement accounts.   Many of these companies are turning to people like Veena Murthy, a principal at the accounting firm Crowe, LLP, who helped craft the SECURE Act in her previous job as a counsel at Congress’ Joint Committee on Taxation.   Bloomberg Law’s Warren Rojas spoke with Murthy about some of the changes the SECURE Act wrought and what benefits managers should be doing about them.

Andrea Grainger, head of transfer pricing operations at insurance and reinsurance giant Swiss Re, is closely watching ongoing OECD talks aimed at rewriting global corporate tax systems. She spoke with Bloomberg Tax reporter Isabel Gottlieb about how different parts of the plan would affect her industry—and why all companies should be paying attention.

Peter Blessing, an associate chief counsel at the IRS, joins Bloomberg Tax senior reporter Allyson Versprille to talk about the agency's strategy for wrapping up implementation of the 2017 tax law. At Bloomberg Tax's 2020 Outlook on Tax event in Washington, Blessing discusses challenges resulting from companies wanting to bring intellectual property back to the U.S. He also addresses initial international issues arising from the IRS's real-time auditing program for some large corporations.

L.G. "Chip" Harter is spearheading the Treasury Department's implementation of the international provisions of the 2017 tax law. He said the department aims to finish this by October. Harter spoke with Bloomberg Tax reporter Isabel Gottlieb at Bloomberg Tax's 2020 Outlook on Tax event in Washington. Harter spoke about a Senate inquiry into Treasury's rulemaking process and he also addresses what's next for U.S. negotiations on tax treaties after the Senate finally broke a decade-long treaty logjam last year.

Google, Facebook, and other tech giants have too much market power and way too much information about all of us. That's the opinion of lots of political figures, as well as of Nobel economist Paul Romer. What makes Romer different is his preferred way of dealing with this problem: taxes. U.S. states would be the best place to start, Romer says. He speaks with Bloomberg Tax correspondent Michael Bologna on the latest episode of Talking Tax.

This week, we're sharing an episode of the newest weekly podcast from Bloomberg Industry Group, Downballot Counts. It's a podcast about the 2020 U.S. House and Senate elections and the fight to control Congress. The series is hosted by Bloomberg Government Senior Elections Reporter Greg Giroux and Elections Team Leader Kyle Trygstad. Subscribe to Downballot Counts wherever you get your podcasts.

Some of the biggest investment funds—Ares Management Corp., KKR & Co. Inc., and others—converted from partnerships to C corporations after Congress slashed the corporate tax rate in the 2017 tax law. But conversions aren’t for everyone, not by a long shot. Jeremy Swan, managing principal at CohnReznick in New York, talks about the pros and cons, the questions that businesses should ask themselves, and the political uncertainties right now that signal the wisdom of a “wait and see” approach to further conversions.

Patriotic Millionaires isn’t just about advocating higher taxes for the wealthy, as Chair Morris Pearl discussed in a recent Talking Tax episode. The group also thinks fairness requires multinational companies to pay tax in the countries where their sales revenue comes from, and they should disclose how much tax they pay in each country. In this episode, Pearl talks with host Amanda Iacone about these issues and why corporate political spending is a problem.

Morris Pearl is somewhat encouraged by all the talk about wealth taxes these days. The Patriotic Millionaires, which he chairs as a volunteer job, has “made a lot of progress in moving the needle” toward its argument for taxing the rich more and paying people more equitably. Pearl, who made his wealth initially at BlackRock Inc., talks with Bloomberg Tax’s Amanda Iacone about the wealth tax proposals, legislation to tax investment income at the same rate as earned income, the “ridiculous” carried interest tax benefit for fund managers, and more.

House committees, among others, have been trying to get President Donald Trump’s tax returns and other financial documents, and have turned to the courts to enforce the effort. Why doesn’t Congress use its own enforcement? Cornell law professor Josh Chafetz thinks the legislative branch has ceded too much power to the judicial branch. He points to the Nixon tapes effort in the 1970s as a significant turning point, when Congress went to courts for the first time in an information dispute with the executive branch. He talks with Bloomberg Tax legal reporter Aysha Bagchi about the arguments he makes in his book, Congress’s Constitution, and speculates on how the cases may play out.