Week in Insights: Really, It’s Pretty Good to Be ‘Just OK’

The question “how are you?” is a perfunctory greeting that’s often exchanged in passing. And it’s a question that has always frustrated me, because I take it at its core.

Responding with “I’m OK” is often seen as negative. But the expectation to always be “good” isn’t realistic. Not only is it impossible—no one can be happy 100% of the time—but it also dilutes all emotions. Without the lows or mediums, there can’t be any highs.

Tina Muir, a runner and podcaster I’ve followed for years, comes to mind when I mull this hastily uttered salutation. Muir regularly posts “together runs” in her podcast, Running for Real, and these episodes serve as a guided meditation. In nearly every episode, she asks: “How are you—really?” And when she asks, she truly wants to know the answer.

I know many people don’t consider the nature of this question the way I do, but it’s something I can’t let go of. The power of words is strong, and I believe in genuine and honest expressions.

At Bloomberg Tax, we champion genuine and honest conversations about the tax profession through our commentary and insightful analysis on federal, state, and international tax issues. Whether things are good, bad, or somewhere in between, we’re here to share the power of your words and learn something new.

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“Joy,” left, and “Sadness” attend the premiere party for Disney-Pixar’s “Inside Out” on June 8, 2015, in Hollywood, Calif.

Photographer: Jesse Grant/Getty Images for Disney

Quick Trivia

What’s the origin of the word OK?
Answer at the bottom.

State Insights

Pennsylvania nonprofits should examine executive compensation structures and intercompany service agreements following a recent court ruling, say BakerHostetler’s Mike Semes, Alexander Reid, and Matthew Elkin.

Federal Insights

Misty Erickson of the National Association of Tax Professionals explains what tax pros need to know about the new credits for electric and clean fuel cell vehicles for tax years 2023 through 2032.

David Shuster of Marcum LLP offers an analysis of how a recent Tax Court decision applies to certain provisions in the tax code and what taxpayers should do while the IRS ponders whether it should appeal.

A plan to redefine syndicated conservation easements as listed transactions carries the potential for higher costs to meet new reporting and disclosure requirements and penalties for failing to meet those new requirements, says Chamberlain Hrdlicka’s Erin R. Hines.

Cannabis companies that properly tailor structures to their specific operations can maximize their Section 1202 tax benefits and potentially save millions in taxes, say Greenberg Glusker’s Zachary M. Nolan and Michelle Mabugat.

Global Insights

Saskia Kohlhase of Rotterdam School of Management, Erasmus University, and Jacco L. Wielhouwer of the Vrije Universiteit Amsterdam argue that multinational enterprises’ tax and tariff planning is more effective when their business units are involved in the planning process.

As tax administrations increasingly use artificial intelligence in their work, Alfredo Collosa considers the rules proposed by the European Commission to ensure “trustworthy” AI, and what factors should be considered in relation to taxpayers’ rights.

Different types of price reductions are used by businesses to attract new customers, clear inventory, and increase sales. They may have value-added tax implications, and Aleksandra Bal of Stripe looks at the potential compliance and reporting requirements for businesses.

IFRS 17, international reporting standards for insurance contracts, has implications not only for accounting and finance, but also taxes, policies, and processes, says Stout’s Mhalou Abadiano. (subscription required)

ATOZ Tax Advisers’ Oliver R. Hoor, Keith O’Donnell, and Samantha Schmitz analyze potential implications of Luxembourg’s January 2023 Administrative Tribunal’s ruling on the tax treatment of the redemption of a class of shares by a Luxembourg company. (subscription required)

Columnists

Cupertino, Calif.'s complicity in its tax arrangement with Apple is reprehensible, as are most collusions between industry and government. California’s legislature must hold municipalities and companies like Apple accountable for their unethical behavior, says Andrew Leahey.

Save the Date

Find out how to feel more in control of your workload and calendar, and regain a feeling of progress, by joining Bloomberg Tax and Bloomberg Law Insights & Commentary teams from noon to 1 p.m. on April 26.

We’re bringing back one of our most popular Lunch & Learn speakers, Rashelle Isip, to explain how you can be more productive by working more efficiently, not by working harder or longer hours.

You can join us for this free virtual event, no registration required, by signing on here at noon on April 26 or by calling +1 646 931 3860 and entering the meeting ID: 924 7270 5722.

Career Moves

Consulting partner Richard Andrews has been named head of environmental, social, and governance for the UK arm of KPMG LLP.

Patricia Harris moved into the commissioner role in the Ohio Department of Taxation.

Matthew Legg, CPA, has been named a tax shareholder at Schneider Downs and will lead the international tax practice from Pittsburgh.

Clifford Chance has appointed Paul Seraganian as the regional practice area leader of its tax, pensions, and employment practice in the Americas.

Aaron Pinegar has joined Jackson Walker as a partner in the tax practice in Dallas.

Stuart Broadfoot has joined K&L Gates as a partner in the tax practice in Sydney.

Bucky Brannen has joined Bracewell as a partner in the tax practice in Dallas.

Helen Mackey and Charlie Stodell have been promoted to partner at Eversheds Sutherland in the commercial practice group.

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

Swedish pop group ABBA give the thumbs up after winning the Eurovision Song Contest on April 7, 1974. Left to right: Bjorn Ulvaeus, Agnetha Faltskog, Anni-Frid Lyngstad and Benny Andersson.

Photographer: Steve Wood/Daily Express/Hulton Archive/Getty Images

Spotlight

This week’s Spotlight is on London attorney Michelle Sloane, a partner in Reynolds Porter Chamberlain LLP’s tax, regulatory, and financial crime team. Sloane’s expertise is in indirect tax and criminal matters, particularly disputes involving value-added tax and customs and excise duties.

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

• Ernst & Young said it would eliminate roughly 3,000 jobs from its US workforce as it pivots to address shifts in demand and “overcapacity” in sections of its business. And Deloitte & Touche LLP will lay off a reported 1,200 US employees, largely in the firm’s advisory practice.
• As the deadline for filing individual income tax returns was reached Tuesday, tax professionals say the IRS lived up to these hopes for a “normal” filing season.
• House Republicans are pushing to roll back funding for the Inflation Reduction Act’s energy tax credits, as the GOP ramps up oversight on the incentives and faces down the debt limit deadline.
• IRS Commissioner Danny Werfel told lawmakers Wednesday that more details are coming soon on how the agency plans to spend the $80 billion it got in last year’s tax-and-climate law over the next decade.

Talking Tax

After working in Big Four accounting firms, Carmela Walrond decided to work for herself. She established her own tax practice in 2019, then merged with JLD Tax to launch a combined practice in 2020. Walrond is now a partner at JLD Tax Resolution Group and an entrepreneur. In this episode of Talking Tax, Walrond chats with reporter Jeff Leon to share her experiences as a woman of color advising small businesses and what’s on her radar for 2023.

Our Wish List

What’s on our Bloomberg Tax Insights wish list right now? For May, we’d like to see pieces that focus on nonprofits, including best practices and Form 990 updates. We’re also looking for insights on charitable giving incentives, donor-advised funds, donor privacy issues, and estate and gift planning techniques. And, of course, we’re interested in charity and government-related concepts like unrelated business income taxes and payments in lieu of tax.

Our Insights articles—which are 1,000 words or fewer—are written by tax professionals offering expert analysis on current tax practice and policy issues, tax trends and topics, and tax and accounting firm practice and management. If you have an interesting, never-published article idea, we’d love to hear about it. You can contact our Insights team at TaxInsights@bloombergindustry.com.

Our Team

We talk about tax a lot. But there’s much 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:

• Butch Maier (Deputy Team Lead, Bloomberg Tax): The final season of “The Marvelous Mrs. Maisel.”
• Andrew Leahey (Columnist, Insights and Commentary, Bloomberg Tax): The “Love is Blind” reunion. My wife and I waited for the live stream to start for like an hour and 10 minutes, and the first words out of the host’s mouth were: “We aren’t live!” So it totally lived up to expectations.
• Kathy Carolin Larsen (Deputy Team Lead, Bloomberg Tax):“A Spy Among Friends” is about the British spy/double agent Kim Philby and his lifelong friend and fellow British agent Nicholas Elliott. Guy Pearce and Damian Lewis are wonderful.

Reading:

• David Jolly (Senior Content Editor, Bloomberg Tax): “M: Son of the Century,” a prize-winning Italian historical novel about the rise of Mussolini by Antonio Scurati. It brings to life the chaos and terror of the post-World War I period that gave birth to fascism.
• Jessie Kamens (Editor-at-Large, Insights and Commentary, Bloomberg Law): I’m reading “The Fault in Our Stars” by John Green, because my 13 year-old daughter told me to. I’m not really into YA but this one really does have cute dialogue. So far, thumbs up, but bracing for a sad ending.
• Amanda Iacone (Senior Reporter, Bloomberg Tax): I picked up the classic “And Then There Were None” by Agatha Christie—no spoilers, please!
• Katharine Butler (Acquisitions Manager, Insights and Commentary, Bloomberg Tax): I saw a sci-fi movie on Netflix called “Annihilation.” I started watching it because it’s directed by Alex Garland, who directed “Ex Machina,” which I loved.
• Lauren Vella (Corporate Tax Reporter Bloomberg Tax): I’m reading “Song of Achilles” by Madeline Miller. It’s the story of Achilles and his relationship with Patroclus, an outcast prince banished from his home kingdom after a shocking act of violence.

Listening:

• Melanie Cohen (Senior Content Editor, Insights and Commentary, Bloomberg Tax): Gary Clark Jr., a blues and rock artist I’ll be seeing in concert this summer at a storied D.C. concert promoter’s new music venue. My first time seeing Clark in concert, in 2019, was one of my top-three concert experiences ever.

Quick Trivia Answer

The word OK is said to come from “oll korrect,” a deliberately humorous misspelling of “all correct” from the US in the 1830s.

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