Talking Tax

Congress is back in session with just a few weeks to reach an agreement before government funding runs out Sept. 30. For IRS watchers, the lack of agreement on how to fund the tax collection agency or whether to extend expiring tax breaks rank among the key issues lawmakers will grapple with over the coming months. In this week’s episode of Talking Tax, Bloomberg Tax reporter Zach C. Cohen and Bloomberg Government reporter Maeve Sheehey preview the government funding fight and potential movement on budget reconciliation bills, and the impact on tax policy and administration. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

As President Donald Trump's tariffs make waves in the world economy, multinational companies are mulling what it could mean for their intangible assets like intellectual property and brand recognition. The vast majority of corporate value comes from intangibles. In 2020, such assets made up 90% of the value of the S&P 500, according to an often-cited study by IP consultant Ocean Tomo—up from up from just 17% in 1975. Tariffs don’t directly levy fees on intangibles, but their value is often embedded into imported products, raising the tariffed price. These intangible assets can also come with a smorgasbord of options for companies to locate IP in countries to best blunt the impacts of tariffs or reduce taxes on their business. On this episode of Talking Tax, Grant Thornton principal Glen Marku talked with reporter Caleb Harshberger about what companies' intangible assets could mean for their tariffs exposure and whether they need to rethink their tax planning. Do you have feedback on this episode

Big Four accounting firms are racing to integrate next-generation AI technology across their service lines and develop a talent strategy to match the industry's new era. KPMG is focused on making sure it's balancing efficiency gains because of artificial intelligence with long-term workforce development, according to Sandy Torchia, vice chair of talent and culture at KPMG US. The firm has created new learning opportunities for workers to teach them how to use AI to enhance career growth, she said. Like its competitors, KPMG has rolled out new autonomous AI that can accomplish tasks with minimal human intervention. The industry's next generation is taking note. The vast majority of KPMG's US interns expect at least 20% of their work to be automated by AI by the time they start full-time positions, according to the firm's recent survey. Torchia, who is also head of people for KPMG's Americas region, recently stepped into a new role as global co-head of people for KPMG International. She spoke wi

Proof from an ancient Roman scroll: As long as there have been taxes, there has been tax evasion. When researchers studied a previously mislabeled scroll, they discovered detailed attorney notes for a case against taxpayers accused of using forged documents and sham transactions between the Roman provinces of Judaea and Arabia to escape taxes on their assets. The assets in question were enslaved people. The potential punishments included distinctly unmodern measures. Anna Dolganov of the Austrian Academy of Sciencescq talked with reporter Caleb Harshberger about how scholars made the discovery, details of the scheme, and what they're hoping to uncover next as they continue their research. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Pharmaceutical companies are scrambling to respond to the Trump administration's tariff threats, seeking to mitigate duties on their products while keeping the impact on their tax bills to a minimum.   The industry has long leveraged complex transfer pricing arrangements to cut down on its tax bills, but now the looming tariffs could spark a major rethink for where companies make their drugs and the location of their crown jewel: the intellectual property. Pharmaceuticals were exempt from the initial wave of tariffs announced earlier this year, but subsequent months have seen threats of heavy fines and taxes from the administration and a looming national security investigation, which could result in heavy duties on the industry.   In this week's Talking Tax podcast, Cronus Consulting founder Nick Shipley talked with reporter Caleb Harshberger about how pharmaceutical companies are navigating the chaos, and what it could mean for their tax planning and operations. Shipley is a consultant for the pharmac

One of the most unwanted jobs in Washington is now up for grabs—again. President Donald Trump's IRS commissioner, Billy Long, exited as the head role last week and is expected to be nominated as the ambassador to Iceland. Treasury Secretary Scott Bessent will fill the job in the interim. The vacancy at the top of the IRS continues the turbulence the agency has experienced since the start of the Trump administration. Now, the question of who will be nominated next—if at all—remains. In this episode of Talking Tax, Bloomberg Tax reporter Erin Slowey discusses how the IRS got to this point and what it means for the future of the agency. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

It’s been four months since the Trump administration announced its “Liberation Day” tariffs, and companies are still scrambling to make sense of what it means for their operations and tax planning. Rates keep changing, sometimes day to day, as countries struggle to make lasting trade deals with the US, while corporate tax and customs departments put their heads together to minimize the costs to their companies—without attracting a big audit. In this special Talking Tax podcast—the first of four on transfer pricing and tariffs—PwC principal Chris Desmond talks with Bloomberg Tax reporter Caleb Harshberger about the ways companies have been trying to adjust to the new reality. These include emergency meetings with top executives and heads of tax, trade, and other functions across the company, and deep dives into customs rules that many company executives hadn't felt the need to know well—until now. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-34

Millions of taxpayers used to getting paper checks from the Treasury Department will soon have to find another way to get their money as the agency phases out paper refunds. The Treasury will send its final tax refund on a paper check by October, if it stays the course set by President Donald Trump’s March 25 order to transition fully to electronic payments. Tax observers fear that the change could leave low-income or unbanked taxpayers confused or without refunds. The abrupt switch to direct deposit for all tax refunds also could catch less-obvious taxpayers by surprise. Real estate trusts can't submit banking information on current tax forms unless they are expecting a refund of over $1 million, meaning smaller trusts can't tell the IRS where to send a direct deposit. Banks also hesitate to service high-risk small businesses—like those in the marijuana industry—leaving them without a means to receive a direct deposit. In this episode of Talking Tax, Cheri Freeh, chair of the committee responsible f

Tax-exempt organizations are closely watching the Trump administration to see if it makes good on its intention to alter standards around claiming tax-free status. The IRS gave a green light to churches speaking about political campaigns and candidates without losing their tax-exempt status, while President Donald Trump publicly threatened Harvard University's tax status because of allegations of antisemitism on campus. Treasury also is considering a change to IRS policies to allow the revocation of tax-exempt status for colleges that consider race in student admissions. Nonprofits already are changing their internal policies to adhere to the administration's moves. Some universities earlier this year slashed progressive policies and scrubbed references to diversity, equity, and inclusion from their websites to avoid a clash with Trump. Churches likely will push the bounds of what type of political speech is allowed, setting up a fight about whether places of worship can endorse or raise money for poli

Tax breaks for whale captains in Alaska and spaceport builders were among the lower-profile perks included in the GOP's $3.4 trillion tax-and-spending law enacted this month. The policies were necessary to gain votes of Republican holdouts, enabling the measure to pass in both the Senate and House in time for GOP lawmakers' self-imposed July 4 deadline. The law moved through Congress faster than many predicted, and some lawmakers are seeking changes to provisions in the law already generating criticism, such as a change to the deduction amount for wagering losses. The Republican majority's use of the reconciliation process, which allowed the measure to pass without any Democratic support, does not portend well for bipartisanship ahead. In this week's episode of Talking Tax, Bloomberg Tax reporter Chris Cioffi breaks down what Congress could tackle next on the tax front, including what could be in more reconciliation bills in the months and year ahead. Do you have feedback on this episode of Tal

Multinational corporations have been hustling to make sense of the flurry of US tariff policy changes this year, and figure out how to factor that into their transfer pricing. One place that's been in this situation before: Latin America. For decades, companies there have been navigating tariffs and the impacts on their tax planning—including transfer pricing, or how companies value transactions between their related entities. This week on the Talking Tax podcast, Webridge Technology Global Tax Adviser Hernan Katz talks about the lessons companies can take away from the experience of Latin American countries. These include making sure staff across departments are working together to tackle issues of trade and transfer pricing, how tax authorities try to crack down on companies they suspect aren't following the rules, and explaining how intercompany dealings are motivated by business reasons—not tax or trade. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemai

The fate of the OECD-led global tax deal was rocked this week after the US and its Group of Seven allies came to an understanding that would exempt American companies from two key parts of the global minimum tax framework. G7 countries agreed to the exemption over the weekend in exchange for Congress removing Section 899 from its tax-and-spending bill—a provision referred to as the "revenge tax" that would have hiked taxes on foreign-owned companies if their home countries imposed "unfair" taxes on US businesses. In this week's episode of Talking Tax, reporter Lauren Vella talks about how the agreement was reached, and why the G7's statement is only the first small step toward the US achieving what it calls "side-by-side" treatment of its tax system and the global minimum tax framework. She also discusses Canada's decision to revoke its digital services tax to bring President Donald Trump back to the trade negotiating table, and what impact it could have on other countries that have similar levies

Congress is reconsidering the accounting guardrails it put in place more than two decades ago to ensure investors can trust the revenues and asset values listed companies publish. Republican budget proposals would abolish the US audit regulator and reassign its work to the Securities and Exchange Commission. While lawmakers negotiate over what will end up in a final version of their tax and spending bill, the proposals have prompted debate over how best to regulate auditors and the role of the Public Company Accounting Oversight Board. A member of the board and two former executives turned whistleblowers of once-corporate titans Enron Corp. and WorldCom Inc. spoke with Bloomberg Tax reporter Amanda Iacone about whether the audit regulator should remain independent or whether it would benefit from being folded into the federal government. On this episode of Talking Tax, Sherron Watkins, a former Enron finance executive, and Cynthia Cooper, a former WorldCom chief audit executive, argue that Congress shoul

The Republican-led Senate Finance Committee unveiled its portion of the mammoth tax-and-spending legislation that's quickly moving through Congress, and there's a lot to unpack. The Senate bill has dozens of differences from the House version. It makes several business breaks permanent, softens the excise tax on university endowments, and phases out more slowly cuts to clean energy credits, while smoothing edges on the so-called "revenge tax." But there are many similarities in the approaches the two bills take—both have tax breaks on income such as tips and overtime sought by President Donald Trump, and seek to extend much of the 2017 GOP tax law. Things are moving quickly as the Senate aims to pass its version out of its chamber before the July 4 break. In this week's episode of Talking Tax, Bloomberg Tax reporter Chris Cioffi speaks with host David Schultz on what's in the bill, what's left out, and where Congress goes from here. Do you have feedback on this episode of Talking Tax? Give

Recent layoff announcements at Big Four accounting, tax, and consulting firms come as the industry faces economic uncertainty and a shrinking talent pool. The accounting profession is at a crossroads as a new class of students graduate. While recent data shows heightened interest in both undergraduate and master's degree programs, the industry faces possible disruptions like workforce reductions and emerging artificial intelligence tools. Deloitte LLP announced in April it would lay off government consulting employees as the Trump administration slashed federal contracts. The firm said in a statement the personnel actions were based on its public-sector clients' "evolving needs," among other factors. PwC LLP plans to cut roughly 1,500 jobs, many in its tax and assurance practices, the firm said last month, after two years of historically low levels of turnover. The firm plans to slow down its campus recruiting and will offer fewer internships for next year. But PwC announced this week it plans to

The “revenge” tax provision that’s in the giant tax bill working its way through Congress has a lot of people worried. Known as Section 899, the provision would impose stiff, retaliatory tax rates on companies and people from countries that the US deems to be imposing "unfair" and "discriminatory" taxes against US companies. It was included in the version of the bill House Republicans narrowly passed last month, and now gets Senate attention. The aim of Section 899 is to push those countries into changing their policies, but many observers fear the move would lead to lower foreign investment in the US, costing American jobs and cutting into economic growth. That’s not the only reason for concern. Financial markets are worried about the retaliatory tax’s potential impact on the value of US assets. Some observers think Section 899 would damage the US’s longstanding reputation as a stable, reliable place for global companies to do business and for global investors to put their money, On this episode

Companies scored wins after the House passed a multi-trillion-dollar tax bill that largely preserved the current tax rates on foreign-earned income. Republicans' 2017 Tax Cuts and Jobs Act created a new international tax regime including a minimum tax on global intangible low-taxed income, or GILTI, a reduced tax rate on foreign-derived intangible income, or FDII, and a base erosion and anti-abuse tax, or BEAT. Each of these tax rates will go up in 2026 without congressional action, but House lawmakers made slight changes that will result in minimal tax increases. But the debate isn't over. The bill now heads to the Senate, where tax practitioners and companies expect impactful changes to the mammoth legislation, including the international provisions. On this week's episode of Talking Tax, reporter Lauren Vella talks about the House provisions, what companies want to see in the Senate version of the tax bill, and how the legislation might impact US relations with other countries. Do you h

House Republicans are moving quickly to get a massive tax-and-spending package across the finish line before week's end even as they negotiate with party factions over outstanding concerns. Some Republicans are demanding deeper cuts to social programs like Medicaid to curb deficits as part of the deal and to reduce the package's cost to extend the 2017 tax overhaul. And yet the bill increases the debt limit by $4 trillion and adds billions in spending. Cut out of the process, Democrats oppose the proposal, and even some Republicans have objected to its size and scope. Regardless of where lawmakers fall on the political spectrum, they all seem to agree on one data source: What the Committee for a Responsible Federal Budget has to say about the package and what it will do to the national deficit, which now stands at over $36 trillion. On this episode of Talking Tax, Bloomberg Tax reporter Chris Cioffi talks with Maya MacGuineas, longtime president of the nonprofit public policy group, and digs into w

With the massive wave of federal government layoffs, tens of thousands of workers from the IRS and other agencies are likely looking for new jobs, potentially in the private sector for the first time. Caroline Ciraolo, a partner at Kostelanetz and founder of the firm's office in Washington, D.C., has started an initiative that connects former federal tax professionals with law firms and other private employers. She knows what it's like to make the transition: Ciraolo was the No. 2 official in the Department of Justice Tax Division from 2015 to 2017 before returning to the private sector. In this episode of Talking Tax, Bloomberg Tax Editor at Large Rebecca Baker sat down with Ciraolo to discuss shifting out of government work, and how the "love of the practice area" is a key transferable skill. "That passion for unpacking complicated transactions and complicated facts and circumstances, identifying the issues—those skills are equal on both sides," she said. Do you have feedback on this episode of

The IRS right now isn't the same agency it was at the start of this year. That's because about 20% of IRS workers have signaled they want to leave or have been fired. The ripple effects of this exodus could go far, not just for the IRS itself, but for businesses and individual taxpayers trying to file their returns. Roughly half of the 30 people at the top of the IRS organizational chart have left, many because of Trump administration decisions that stretch boundaries of the law. Those departures in particular erode an important layer of defense to the IRS's most important missions: taxpayer data security and a fair tax system, former and current agency officials said. Most recently, two executives brought on to help the IRS build up its enforcement and reporting of digital assets left and were replaced by longtime IRS official Trish Turner. The leadership departures, combined with the broader cuts across different levels of the agency, make it harder for the IRS to collect revenue for the gover