Curated by Daniel Xu
Changes are underway to international tax policies under Pillar Two of the OECD-led global 15% minimum tax agreement. Notwithstanding sweeping, fundamental shifts in calculating tax obligations, the change that might be most readily felt is the reporting requirement for apps such as Airbnb and eBay.
As of Jan. 1, states that are a party to the Organization for Economic Cooperation and Development’s agreement must require online platforms that facilitate transactions to share details with tax authorities.
This was already the case for the US—subject to a $5,000 threshold for 2024. In many other countries, including the UK, this is a shift that has given rise to terms such as “side hustle tax.” But the requirement is rarely if ever a change in actual taxes owed—in most tax systems, income is income regardless of its source or insignificance.
Nonetheless, countries that are a party to the OECD agreement are seeing the same general reaction that was common in the US when online platforms began sending 1099-K forms to users. People seem to believe the change amounts to a new tax obligation rather than increased enforcement of an existing obligation.
Here at Bloomberg Tax, we are committed to combating such misconceptions. By gleaning insights from experts and doing thorough research, we aim to provide accurate and up-to-date information to demystify complex tax regulations and set the record straight.
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State Insights
AB FinWright’s Rachel Wright, Abraham Finberg, and Simon Menkes explain the legislative battle over Ohio’s latest cannabis bill and its potential impact on social equity.
Darien Shanske of UC Davis School of Law examines how the budget gap in Cupertino, Calif., came to be and suggests implementing a progressive parcel tax to address it.
Federal Insights
Alliantgroup’s Eric Hylton, former IRS SBSE commissioner and deputy chief of the criminal investigation division, details immediate next steps for businesses that are concerned about fraudulent employee retention credit claims.
Kassie Grishaber of FORVIS explains how proposed changes to tax code sections governing tax benefits for deals between partnerships and related persons offer coherence that tax professionals have sought for years.
Loyola law professor Ariel Jurow Kleiman explains why the IRS should allow taxpayers to download their tax data into public or private software—no matter the fate of its Direct File pilot.
Tax pros should urge caution to wealthy clients who want to make large gifts to take advantage of sunsetting tax exemptions, Beth Shapiro Kaufman and Meghan Muncey Federman of Lowenstein Sandler say.
UC Berkeley’s Jesse Finfrock explains the pressures companies face to use AI to generate profit and the necessary considerations for entity formation.
Brian Simpson of Baker Tilly outlines several ways companies and their executives can prepare for new accounting standards from the Financial Accounting Standards Board.
While recent rules governing crypto assets have gone a long way toward boosting transparency and trust, outstanding issues need to be addressed, Lukka’s Suzanne Morsfield says.
Career Moves
Brian Clark has been elected to partnership at Gray Reed in the Dallas office.
Jeffrey S. Segal has been named partner at Warner Norcross + Judd based in Detroit.
Cameron Reilly has been promoted to partner at Baker McKenzie in Chicago; Graco Sáenz-Andapia has been promoted to partner in Mexico City; and Michael Tedesco and Amir-Kia Waxman have been promoted to partner in New York.
Stephanie Bollheimer and Eric Wexler have been elected tax partners at Akin in New York.
Karen Lowell has been promoted to partner at Lewis Roca in the Phoenix office.
Richard J. Miller has joined Hughes Hubbard & Reed as partner in the private client services law practice group in the New York office.
Nicole Goulard has joined Ogletree Deakins as a partner in the Paris office.
Sara Vizithum has been named partner at Brooks Pierce.
Alexander Brown and Matthew J. Meltzer have been elected shareholders at Flaster Greenberg PC.
Sax has promoted Nina Bahazhevska, Matthew Giordano, and Gina Perrone to partners.
Jun Wang has been promoted into the partnership at Miller Kaplan.
Justin Cohen has been promoted to counsel at Hughes Hubbard & Reed in the tax and employee benefits practice group.
If you’re changing jobs or being promoted, email your submission to TaxMoves@bloombergindustry.com for consideration.
News Roundup
It’s been another busy week in tax news from state capitals to Washington. Here are some stories you might have missed from our Bloomberg Tax news team (login required).
- Guidance on President Joe Biden’s tax-and-climate law, the global tax deal, and cryptocurrency will take center stage this year.
- A broad housing coalition has one more shot to convince a state court that its lawsuit to force reform of New York City’s arcane property tax system should move forward.
- Businesses eager to see Congress revive expired research and investment tax breaks have reason for optimism that a deal could come together as soon as this month.
- The Big Four accounting firms have leaned into their tech advisory work and data analytics services—areas ripe for revenue growth—as interest rates and the artificial intelligence boom reshaped demand for consulting services.
Tax Journals
(Bloomberg Tax login required)
Tax Management International Journal
Multinational enterprises should only pursue an advance pricing agreement after a serious decision-making process that considers the types of certainty sought, the cost-benefit proposition, and any company-specific factors that would impact the decision, says Steven Wrappe of Grant Thornton.
Tax Management Memorandum
Ryan’s Mark L. Nachbar and Mary Bernard analyze and comment on long-awaited IRS guidance pursuant to the advanced manufacturing production credit under Section 45X of the tax code.
Our Team
We talk about tax a lot. But you would hear much more 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
Maria Menezes (Practice Lead): I really enjoyed “Mog’s Christmas” on Channel 4. I also watched loads of reruns of Agatha Christie films—it was joyous.
Reading
Andrew Leahey (Columnist): “Invisible Cities,” a 1972 novel by Italo Calvino. It imagines a conversation between Marco Polo and Kublai Khan about fictional cities, describing their folkways and culture.
Listening
Melanie Cohen (Content Editor): Cho Yong-pil, an influential Korean musician whose work I discovered because it was featured in a TV show I’m watching.
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