Talking Tax

Kate Kraus joins Andrea L. Ben-Yosef to talk about the partnership audit regulations. Kate recently joined Allen Matkins as a tax partner in the firm’s Los Angeles office. There have been several rounds of proposed, temporary, and final regulations, with the most recent ones issued in August. Kate discusses some key issues to take into account under the new guidance, such as what happens if the partnership representative leaves, taking favorable adjustments into account, and other issues that tax practitioners are dealing with.

Software upgrades, bug fixes, and a global search for lease data were among the challenges United Parcel Service Inc. faced in preparing to adopt new accounting rules for leases. Beginning in January, public companies will have to report leased assets and liabilities on their balance sheet regardless of the length of the lease, under rules issued by the Financial Accounting Standards Board in 2016. Susan Ward, chief accounting officer for UPS, sat down with Bloomberg Tax’s Amanda Iacone Dec. 11 at the American Institute of CPAs’ Conference on Current SEC and PCAOB Developments in Washington to discuss implementation of the lease accounting standard. She also spoke about the use of robotics process automation in the accounting department, and why a historic change in the auditor’s report represents a “natural extension” of the company’s financial disclosures. Host: Amanda Iacone. Producer: Nicholas Anzalotta-Kynoch.

In the second episode of The Over/Under, Bloomberg Tax’s Ryan Prete heads into a House Judiciary Subcommittee hearing on sports betting and discusses how lawmakers felt about regulation thereafter. Ryan also sits down with Dustin Gouker, managing editor at Legal Sports Report, a sports betting-centric online news source, to talk about a sports book error that resulted in an $80,000 payoff. Later, Ryan talks with Richard Auxier of the Tax Policy Center about what states can do to slow Congressional intervention. Host: Ryan Prete. Producer: RJ Jewell and Nicholas Anzalotta-Kynoch.

The Center for Audit Quality is working on a quality indicator framework that could be used to compare accounting firms' performance. Setting quality metrics has long been discussed but until recently hadn't gained traction in the U.S. audit market. The center plans to issue its tool in early 2019. Cindy Fornelli, executive director of the Center for Audit Quality, spoke with Bloomberg Tax’s Amanda Iacone about why audit quality indicators are getting so much attention lately. She also discussed how camaraderie and diversity among the members of the Public Company Accounting Oversight Board could lead to better audit oversight, and the role U.S. regulators play in the ongoing audit debate in the UK.

Michael Hadley and Adam McMahon of Davis & Harman join Andrea L. Ben-Yosef to talk about the key provisions in the Family Savings Act, how it was influenced by RESA, and its prospects for enactment after the mid-term elections. With the Congress racing to stop a government shutdown, does Congress have the attention span to focus on bipartisan retirement plan reforms? For more information, see their Daily Tax Report Insight: Are We on the Verge of the Next Big Pension Bill? A Review of the House-Passed Family Savings Act.

Halliburton Co. is consulting with numerous external advisers to help understand the 2017 tax overhaul, especially provisions for which the IRS hasn’t issued final rules. The law cut Halliburton’s effective tax rate by 10 percent this year and gave the company a more level playing field against its foreign-based competition. Still, it presents continuing business-planning challenges as the new tax code provisions are fleshed out. Myrtle Jones, Halliburton’s senior vice president of tax, joins Bloomberg Tax to discuss how the company is reacting to regulatory challenges and how diversity can drive company innovation. Host: Siri Bulusu. Producer: Nicholas Anzalotta-Kynoch.

Lawmakers have just a few weeks to pass a year-end tax package, amid a calendar shortened by observances honoring the late former president, George H.W. Bush. Bloomberg Tax’s Kaustuv Basu and Allyson Versprille join host Amanda Iacone to discuss the prospects for a lame-duck tax package in the House and Senate. Host: Amanda Iacone. Producer: Nicholas Anzalotta-Kynoch

Kate Kraus joins Andrea L. Ben-Yosef to talk about the partnership audit regulations. Kate recently joined Allen Matkins as a tax partner in the firm’s Los Angeles office. There have been several rounds of proposed, temporary, and final regulations, with the most recent ones issued in August. Kate discusses some key issues to take into account under the new guidance, such as what happens if the partnership representative leaves, taking favorable adjustments into account, and other issues that tax practitioners are dealing with.

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

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

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

Intel subsidiary Altera Corp., in a case being closely watched by tech companies, suffered a setback when an appeals court reversed a tax court ruling in its favor. Yet before the three-judge panel could issue its written opinion, one of the judges died. The appeals court withdrew its opinion, and now another judge will step in to break the tie. In this week’s special edition of Talking Tax, Bloomberg Tax reporter Sony Kassam and legal editor Carolina Vargas follow the winding trail of Altera Corp. v. Commissioner in advance of the Oct. 16 reargument. This episode is part one of a three-part series examining the case. Hosts: Sony Kassam and Carolina Vargas. Producer: Nicholas Anzalotta-Kynoch.

Jim Kehl of Weil, Akman, Baylin & Coleman, in Timonium MD, joins Talking Tax host Andrea L. Ben-Yosef to talk about the complicated subject of §199A, a tax code provision added by the 2017 tax act, and the proposed regulations, released on August 8, implementing §199A’s 20% deduction for businesses taxpayers own directly and indirectly through interests in pass-through entities.” The proposed regulations provide more insight into the definition of a trade or business, which is crucial in determining whether the business owner can take the deduction. For more information, please see the article by Jim Kehl, §199A Gets an Update Three Months After Its Enactment (Bloomberg TM Memorandum (April 16, 2018). See also the special report Section 199A: Understanding the 20% Pass-Through Deduction, at https://www.bna.com/section-199a-understanding-m57982090077/.