The weather was brilliant last weekend, with temperatures reaching into the 70s. It felt like spring. I opened some windows to get some fresh air in the house and then went outside to sweep off the deck. As I moved some plants around that had wintered outside, I thought about how some of my plants that were in the house would probably relish a few hours in the sun—who wouldn’t? I took two of the more hardy ones outside and toyed with finding spots for a few others.
“It’s too early,” I reminded myself and fought the impulse to drag the rest of them outside. But I was super tempted to do it anyway.
By Wednesday morning, we had snow on the ground.
My husband tells me every March that’s to be expected in Pennsylvania. But every year, I’m surprised. I’m learning, but I still have a tendency to embrace spring a little too early. With a couple of weeks to go, I’m already looking forward to watching the bluebells and azaleas bloom—even though I know we’ll have lots of freezing nights before that time.
I think we all have a tendency to do that at some point in our lives—rush a little bit with the expectation that things will simply work out. It can be hard to force ourselves to slow down and think about the information that we have in front of us.
This is, after all, the time of year when clients want their tax returns done today, even if those Forms K-1 aren’t in hand just yet. And even though we know that corrected Forms 1099-B almost always follow the originals by a few weeks, taxpayers are still eager to submit their Forms 1040 early.
The same rings true for budgets, regulations, and rules. It can be hard to wait for the final word—we often just want to get the work done now and not have to wait for Congress, IRS, or other authorities to finish up. Will there be a gas tax holiday? What about a permanent expansion of the child tax credit? What will happen to GILTI? And there’s always a question, it seems, on tax extenders.
That’s why it’s so important to have access to good information. Knowing what could be coming can help you weigh whether to move ahead now or wait a bit longer. At Bloomberg Tax, this week, as always, our experts help you stay informed with great commentary and insightful analysis on federal, state, and international tax issues. It’s all part of our commitment to being a resource to the community—so that you don’t get left out in the cold.
The Exchange… It’s where great ideas intersect.
—Kelly Phillips Erb
Quick Numbers Trivia
How big is the worldwide market for flower and ornamental plants—those sold as cut flowers, houseplants, and for landscape—expected to be in 2024?
Answer at the bottom.
Our Roundup
This week, our experts touched on a wide range of topics, from excise taxes to withholding. For a look at what’s making news, here’s our roundup:
The initial week of chaos following Russia’s invasion of Ukraine saw both public and private actors rushing to Ukraine’s aid. In Seven Takes on the Tax Impacts of the War in Ukraine, Jared Johnson of White and Williams LLP looks at seven tax areas that will be affected by these events.
Late last year, President Joe Biden signed the Infrastructure Investment and Jobs Act into law, which reinstated and expanded the Superfund chemical excise taxes. In Superfund Chemical Excise Taxes: Once Again, Back to Run the Show, Mayer Brown LLP’s Shawn R. O’Brien, Megan K. Hall, and Stephanie Wood share details on these taxes and give insight into reporting requirements.
A new series of IN FOCUS articles provides an overview of the tax landscape and important issues for businesses at a country level. In the first in the series, Andrzej Posniak, Paulina Karpinska-Huzior, Piotr Nowicki, and Mateusz Rowicki of CMS start with a look at the Top Tax Issues for Business in Poland.
Understanding when U.S. tax must be withheld from a payment made to a non-U.S. person and when a payment made to a non-U.S. person must be reported on a 1042-S form are critical elements in preparing complete and accurate forms. In Understanding Critical Elements of Nonresident Withholding Form 1042-S, EY’s Debbie Pflieger and Tara Ferris explain what you need to know.
In ‘GIFT City'—India’s New Global Financial Services Hub Scales Up, Mukesh Butani and Shankey Agrawal of BMR Legal trace the history and tax/regulatory benefits of India’s International Financial Services Centers. They also discuss recent commercial developments in GIFT-City (currently India’s only IFSC) and outline some proposals affecting IFSCs announced in the Union Budget 2022.
Texas’s Chapter 313, which reduces school district property taxes for capital-intensive facilities to attract economic development to the state, will sunset on Dec. 31, 2022. But if a developer finalizes a 313 agreement in 2022, it might not be too late, say Baker Botts’ Matt Larsen, Renn Neilson, and Bucky Brannen in Time is Running Out: The Sunset of Texas’ Chapter 313.
In ‘Big Four’ Targeted Again in U.K.—PwC Becomes Latest Subject of Investigations, Paul Brehony of Signature Litigation LLP looks at the growing number of investigations by the U.K. tax authority into historic audit failures by the “Big Four” firms and discusses how successful the proposed reforms to the audit regime may be.
More countries worldwide are seeking to close their “VAT gaps” by adopting continuous transaction controls (CTCs). In Continuous Transaction Controls—Changing the VAT Landscape, Christiaan van der Valk of Sovos considers the mechanics of CTCs, the countries adopting them, and what U.K. businesses can do to prepare for their implementation.
Opinion & Commentary
On International Women’s Day, Vinson & Elkins’ Hilary L. Preston, a vice-chair at the firm and a member of its diversity, equity, and inclusion executive committee, encourages Big Law to do more to enhance and support women in their careers. In Cultivating the Culture Women Need to Succeed, Preston suggests ways law firms can turn that well-meaning dialogue into action, beginning with a frank conversation about law firm culture.
It’s a tough battle for U.S. companies trying to hold on to their share of the American consumer market, says the Coalition for Prosperous America’s David Morse. In Congress Must Decide on Limited or Full Corporate Tax Avoidance Solution, Morse says large multinational firms are shifting profits to overseas tax havens, giving them an advantage over domestic manufacturers and producers, and it’s time to end the tax disparity.
Columnists & Contributors
Romance scams are on the rise. Not only can scammers steal your heart, but they can also empty your wallet. The key for some scammers is to know enough about a tax or financial transaction or investment to persuade a potential victim to hand over ownership of cash, crypto, or other assets. This week, I tackled How to Avoid Losing More Than Your Heart in a Scam.
We’re Growing
If you’ve reached out to our Insights and Commentary team over the past few weeks, you’ve no doubt noticed some new faces. I’m thrilled to welcome Rebecca Baker and Melanie Cohen to our Arlington team.
Rebecca (rbaker@bloombergindustry.com) joined Bloomberg Tax Insights and Commentary this month as an editor-at-large. She’s been with INDG since 2018, working as a news editor for Bloomberg Law, and was previously an editor at the New York Daily News and New York Law Journal. Rebecca loves to read and travel and is learning Italian in hopes of being fluent one day.
Melanie (mcohen@bloombergindustry.com) grew up with a red pen in hand. She comes to INDG from the Investment Company Institute, where she was a web editor. Before that, she was a copy editor with the Wall Street Journal’s corporate bankruptcy group. In her off time, she enjoys running, yoga, coffee, cocktails, and K-dramas. She would gladly pet your dog if you let her.
Listen In
The accounting profession offers career options that go beyond working for a CPA firm or corporate finance. In this week’s episode of Talking Tax, George Azih talks with Bloomberg Tax reporter Amanda Iacone about why he got into accounting and his experience as a Black entrepreneur, and the value of diversity in accounting and of searching for your diversity blind spots. Azih is the founder and CEO of LeaseQuery, an Atlanta-based company that provides lease accounting software to businesses. He turned his startup into a business that Deloitte ranked among the 100 fastest-growing tech companies in just a decade.
What do CEOs think about the economy as we come out of the pandemic? In this week’s episode of the Taxgirl podcast, Kelly is joined by Kathryn Kaminsky to talk about global economic trends and their effects on tax professionals. Kathryn is Vice-Chair – Trust Solutions Co-Leader of PwC. In this role, she oversees the largest Trust platform in the world, bringing together the firm’s combined audit, ESG, digital assurance, and tax reporting capabilities to best help clients as they seek to build trust with their stakeholders. As co-leader, Kathryn is responsible for the quality of service, excellence in the work performed by over 21,000 partners and staff, developing diverse teams, and driving innovation.
Get Caught Up
It’s been a busy week in tax news from state capitals to D.C. Here are some of the stories you might have missed from our Bloomberg Tax news team:
- Rep. Bill Pascrell (D-N.J.) is beginning an inquiry into how 11 oil companies, including Exxon Mobil Corp. and BP Plc, are using tax benefits and going about stock buybacks amid surging crude prices and a sharp rise in gasoline costs.
- The fiscal 2022 omnibus spending package, which cleared Congress this week, contains a funding increase for the IRS amid a challenging tax-filing season for the agency and taxpayers.
- The European Commission should propose a bloc-level withholding tax to stop profit-shifting, EU lawmakers said Thursday.
- Despite a raging legal fight over the constitutionality of Maryland’s tax on digital advertising, the state is moving forward with plans to collect the first round of payments due April 15.
*Note: Your Bloomberg Tax login will be required to access Tax News.
Spotlight on Deloitte Overseas Tax Partner Brandi Caruso
Our Spotlight series highlights the careers and lives of tax professionals across the globe. This week’s Spotlight is on Brandi Caruso, who lives in Switzerland and leads Deloitte LLP’s Swiss tax financial services industry specialists.
Career Moves
We’re adding tax and accounting career news to our coverage. If you are changing jobs or being promoted, let us know. You can email your submission to TaxMoves@bloombergindustry.com for consideration.
Quick Numbers Answer
The global demand for flower and ornamental plants is estimated to hit $57.4 billion in 2024—a 6.3% increase in growth over 5 years. The market totaled $42.4 billion in 2019, according to a 2020 Floristry and Floriculture Industry Statistics & Trends report.
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