Week in Insights: Spelling It All Out For You

I love words. This probably doesn’t surprise you if you’re a regular reader. After all, I’m a writer.

Every night, before I go to bed, I insist on doing the New York Times Spelling Bee. Ditto for the Wordle (and yes, I have a system).

As a child, I was a ferocious puzzler, though not just any puzzle would do. They had to be word puzzles: crypto (but not that kind of crypto) quotes, crossword puzzles, and word scrambles.

My competitive streak carried over to the real world; I still remember the word that resulted in my losing the fourth-grade spelling bee to Sabrina Sanders. The word was athlete—I learned that day that it may be pronounced with three syllables in the South, but there are really just two.

This Dec. 16, 2016 photo illustration taken in Washington, DC. shows the definition for the word “Surreal” in a copy of the Webster’s Desktop Dictionary.

Photographer: KAREN BLEIER/AFP via Getty Images

I used to flip through our family dictionary as if it held the world’s secrets. So it was no surprise that I snatched up a version of Black’s Law Dictionary in law school as though it was the most priceless book imaginable. Today, I have several versions, including editions from the 1940s and 1950s, that I picked up in old bookstores.

I am fascinated by the idea that you can look up any word and find its meaning and, as Sabrina Sanders and I both know, the pronunciation. And now, with the internet, you can even look up words in any language and practically from any era. It’s incredible, right?

But before there was Google, there was Webster’s. Of course, Noah Webster wasn’t the first to dream up a dictionary—they have likely been around for thousands of years. However, Webster published the first set of spellers, as they were called, in the US—you can thank him for removing the “u” from words like “favour” and “honour.” In 1807, he began work on An American Dictionary of the English Language—he would not finish until 1828. The finished book defined over 70,000 words.

Eventually, his work would be sold to G. & C. Merriam Co. That company, renamed Merriam-Webster Inc. in 1982, is where many still look today for an authority on spelling. Even if you don’t thumb through the pages of their dictionaries, you can find them on the web, where they highlight a word of the day, and on social media — they have over 1 million followers on Twitter.

Webster is so revered in spelling circles that National Dictionary Day is observed on Oct. 16 to commemorate his birthday. The day “celebrates language, emphasizes the importance of learning, and encourages readers to use the dictionary to improve vocabulary.”

I hope you’ll take the opportunity to learn a new word or flip through a dictionary. At Bloomberg Tax, we aim to make it easy for you to learn something new. Our experts offer great commentary and insightful analysis on federal, state, and international tax issues—no dictionary required.

The Exchange… It’s where great ideas intersect.

—Kelly Phillips Erb

(Quick) Trivia \ˈtri-vē-ə\

Facts (as about people or events) that are not well-known

In the original 1828 dictionary, the definition of tax was generally “limited to the sum laid upon” polls, lands, houses, professions, occupations, and which two animals?

Answer at the bottom.

State (Insights) \ˈstāt \

One of the constituent units of a nation having a federal government

Professional athletes don’t have the same type of financials as the average taxpayer. But in an outsized way, their experience sheds light on tax considerations relevant to the millions of Americans who work remotely, says the Tax Foundation’s Jared Walczak.

The California Supreme Court’s decision not to review the 2009 Metropoulos Family Trust v. California Franchise Tax Board has left many California taxpayers scratching their heads on how to source income from the sale of intangibles, says Shail Shah of Greenberg Traurig LLP.

As more streaming services start to offer lower-cost, ad-supported plans, there’s been plenty of chatter about what these developments may mean from a competitive and product point of view. But this shift could also prompt changes in state and local taxes, says Avalara’s Toby Bargar.

Federal (Insights) \ˈfe-d(ə-)rəl \

Of or constituting a form of government in which power is distributed between a central authority and a number of constituent territorial units

Andrew Sageser of FORVIS discusses recent and proposed legislative changes to Roth IRAs and the potential impact on current and future account owners and beneficiaries.

Digital asset accounting is fraught with complexity. But as institutional adoption continues, regulatory clarity and compliance are the keys to success, says TaxBit’s Aaron Jacob.

Demand for professionals with hybrid legal and advanced accounting training is expected to escalate, and the legal and accounting skills that students develop with a combined juris doctorate and master of accountancy degree make them exceptionally attractive job applicants, says Brigham Young University’s Maren Hendricks.

Global (Insights) \ˈglō-bəl \

Of, relating to, or involving the entire world

Moving to the UK should be an exciting time, both professionally and socially. In their second article, Amish Patel and Rod Smith of RWK Goodman explain how with careful planning, US nationals should be able to take advantage of the opportunities and avoid any tax pitfalls.

In a two-part article, Oliver R. Hoor of ATOZ Tax Advisers considers the EU’s current anti-abuse measures and asks whether, in light of the public consultation which has been launched, there is a real need for a new initiative in this area by the European Commission. In part two, he discusses the detail of the consultation and looks at the existing measures targeting tax evasion and avoidance. You can read part one here.

Rogério M. Fernandes Ferreira and Duarte Ornelas Monteiro of RFF & Associados explain the personal and corporate tax reforms introduced in Portugal in recent years to increase its competitiveness and attract foreign investment.

Commentary \ˈkä-mən-ˌter-ē, -ˌte-rē \

An expression of opinion

Phoenix Suns owner Robert Sarver’s conduct that prompted the NBA to issue a $10 million fine may have been extraordinary, but his response of paying a fine was decidedly ordinary. As a result, Sarver should be able to deduct the fine from his taxes, says tax and consulting firm president Robert Willens.

As high-income individuals, corporations, and business owners brace for the possibility of more IRS audits and enforcement, tax insurance could offer both protection and flexibility to anxious taxpayers, says Aon’s Jessica Harger.

Reader (Responses) \ˈrē-dər \

One that reads

At The Exchange, we welcome responses from our readers and encourage diversity and civil discussion. We are especially interested in responses that add to the conversation, or introduce a different point of view. If you have a response to one of our published Insights, we’d love to hear from you.

Coming (Up) \ˈkə-miŋ \

Immediately due in sequence or development in the coming year

Next week, look for more great Insights and Commentary, including a focus on NFT valuation, a look at the child tax credit, and a take on upskilling the tax workforce.

(A Closer) Look \ˈlu̇k \

The state or form in which something appears

Remote work can make a company look more attractive to current and future employees, but it’s also a gateway into an intricate maze of tax rules. In this edition of “A Closer Look,” Baker McKenzie’s Erik Christenson and Imke Gerdes look at the international cross-border taxation issues posed by remote work.

Columnist(s) \ˈkä-ləm-nist, -lə-mist also ˈkäl-yəm-nist, -yə-mist \

One who writes a newspaper or magazine column

How hard is it to buy a pen that can withstand irradiation? After reading about a taxpayer’s encounter with “disappearing ink,” I decided to find out.

Imposing consumption taxes on tampons and other menstrual hygiene products is discriminatory and makes access to essential goods more expensive. In his latest column, Don Griswold writes that we must devote public resources—intellectual, financial, and human capital—to smart programs that can eradicate period poverty around the planet.

News \ˈnüz, ˈnyüz \

A report of recent events

It’s been a busy week in tax news from state capitals to Washington. Here are some stories you might have missed from our Bloomberg Tax news team.

*Note: Your Bloomberg Tax login will be required to access Tax News.

• Congress can’t end 2022 without reviving an expired corporate tax break on research and development, a letter from the R&D Coalition said.
• Prime Minister Justin Trudeau’s government has begun crafting plans to even the playing field with the US on investment incentives for carbon capture and other clean energy projects.
• The Netherlands would only support, as a last resort, members of the European Union unilaterally implementing a minimum tax on multinationals, as this risks creating divergences in the bloc.
• The confirmation of two individuals’ bankruptcy plans didn’t reignite their tax case after it was paused when their bankruptcy petition was filed, the US Tax Court ruled.

Spotlight \ˈspät-ˌlīt \

Public notice or attention

Our Spotlight series highlights the careers and lives of tax professionals across the globe. This week’s Spotlight is on Bill Smith, the national director of tax technical services for CBIZ MHM, a business consulting, tax, and financial services provider.

Career (Moves) \ kə-ˈrir \

A profession for which one trains and which is undertaken as a permanent calling

KPMG LLP announced a large round of partner appointments at its UK arm, the second-biggest boost it has announced this year as its consulting and advisory businesses grow.

Jonathan Wiseman has been named the director of the audit and assurance business for Deloitte in Jersey, according to a news release.

Phuong Gomard, a partner at Mazars in the UK, has joined the US team as a principal in the sustainable finance and environmental, social, and governance practice, the firm said in a statement.

Shira Helstrom has joined ArentFox Schiff LLP as a partner in the tax practice in Washington, DC, the firm announced.

Kevin Flynn was named the Americas vice chair of tax at Ernst & Young LLP, according to the firm.

Rodney Bedow has joined Brown Rudnick LLP as a partner in the tax group in Boston, the law firm said.

Frazer Money has joined Proskauer Rose LLP as a partner in the tax practice in London, the firm said.

KPMG LLP announced a large round of partner appointments at its UK arm, the second big boost it has announced this year as its consulting and advisory businesses grow.

If you are changing jobs or being promoted, let us know. You can email your submission to TaxMoves@bloombergindustry.com for consideration.

Event \ i-ˈvent \

Something that happens

Tax Foundation, which bills itself as the nation’s leading independent tax policy nonprofit, will host its annual “Tax Prom” starting at 6 p.m. on Nov. 17 at the National Building Museum in Washington, D.C.

If you’re hosting an industry-wide event, let us know. You can email your submission to TaxEvents@bloombergindustry.com for consideration.

(Don’t) Miss \ˈmis \

To fail to perform or attend

We’ve all had that client—the one who calls at night or on weekends, makes last-minute demands, forgets to send you the documents you need, and generally is unpleasant to deal with. But at what point is it more trouble than it’s worth, and how do you pull the plug on the relationship?

We’ve recruited two certified financial planners to help you figure out when to cut ties with a problematic person or organization.

Join Bloomberg Tax and Bloomberg Law Insights & Commentary teams on Oct. 26 from noon to 1 p.m. EDT for “How to Know When to Fire a Client,” part of our free virtual Lunch & Learn series.

(Quick Trivia) Answer \ˈan(t)-sər \

A correct response

The two kinds of animals generally subject to tax according to the 1828 version of Webster’s Dictionary were horses and cattle.

(Our) Team \ˈtēm \

A number of persons associated together in work or activity

I know we talk about tax a lot. But there’s a lot more that you might hear us talking about if you popped into one of our Teams meetings. Here’s a quick look at what some of us are watching, reading, and listening to this week:

Watching:

• Andrew Leahey (Columnist, Bloomberg Tax): I have been DVR’ing all the back episodes of “The Golden Girls,” and my wife and I check in with them every night. A few dated cultural references ($400 toilet seat in the White House—must be a ‘90s budget joke) and social faux pas aside, it holds up well. Estelle Getty was an American treasure.
• Melanie Cohen (Editor, Insights and Commentary, Bloomberg Tax): ""Love in Contract,” a rom-com about a woman who hires herself out as a wife.

Reading:

• Rachael Daigle (News Director, Bloomberg Tax): I got distracted by a former president’s summer reading list, and now I’m midway through “Velvet Was the Night” (Silvia Moreno-Garcia).
• Rebecca Baker (Editor at Large, Insights and Commentary, Bloomberg Tax): “All About Me!” by Mel Brooks.

Listening:

• Alison Lake (Team Lead, Insights and Commentary, Bloomberg Law): Myriam Fares, Hatha el Helo. Some good Persian Gulf rhythms.
• Kelly Phillips Erb (Team Lead, Insights and Commentary, Bloomberg Tax): In honor of Loretta Lynn, I trotted out “Honky Tonk Angels,” a collaboration with Lynn, Tammy Wynette, and everyone’s favorite, Dolly Parton.

Subscribe \ səb-ˈskrīb \

To enter one’s name for a publication or service

Sign up for your free copy of our newsletter delivered to your inbox each week. Just head over to The Exchange and sign up using the green “Free Newsletter Signup” box at the top—or just go directly to the newsletter sign up page.

(What Did You) Think? \ˈthiŋk \

To have as an opinion: to have as an opinion

Your feedback and suggestions are important to us, so don’t hesitate to reach out on social or email kerb@bloombergindustry.com.