Week in Insights: Tax Knowledge Is Anything But a Write-Off

In the “Seinfeld” episode “The Package,” Kramer entreats Jerry to use postal insurance to get his stereo replaced. When Jerry asks about the ethics of having the postal service pay for his new stereo, Kramer dismisses the cost as “just a write-off for them.” Kramer admits he doesn’t know what a write-off is—but is confident that “the ones writing it off” do.

This type of knowledge gap doesn’t exist only on TV—or just between tax practitioners and everyday taxpayers, either. Even within the tax world, practices have their own specialized lexicons, intricacies, and nuanced frameworks built over decades.

A tax expert’s well-written piece gives the reader a view into that world, cutting through the cruft and laying out the problem, its causes, and in most cases at least a sketch of a solution.

Here at Bloomberg Tax, our readers have this opportunity to hear from experts representing an incredibly wide array of practices. Although that exposure might not make someone an instant authority, ardent readers should be able to hold their own in a discussion of tax write-offs with their goofy neighbor.

The Exchange—It’s where great ideas intersect.

—Andrew Leahey

Look for Leahey’s column on Bloomberg Tax, and follow him on Mastodon at @andrew@esq.social.

Jerry Seinfeld performs during the GOOD + Foundation “An Evening of Comedy + Music” Benefit at Carnegie Hall on Sept. 12, 2018 in New York.

Photographer: Manny Carabel/Getty Images

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State Insights

Getting taxes right can affect both financial and mental health for military personnel and their family, says Lee Reams Sr. of CountingWorks Inc.

Federal Insights

Employers should consider conducting internal audits that address compliance risks to smooth the waters ahead of a possible IRS audit, say Ivins, Phillips & Barker’s Tom Cryan and Spencer Walters.

Morgan Lewis’ Carly Grey reviews the SECURE 2.0 Act’s changes to rules on required minimum distributions, such as increases in RMD age and reductions to penalty taxes.

Akerman’s Joshua Hamlet examines the IRS’s delay in issuing employee retention credit refunds and reviews eligibility tests for the refund.

Cherry Bekaert’s Marci Spivey reviews the tax benefits available to individuals who rent vacation properties and combine work and personal travel.

The IRS has granted large corporations a reprieve from payment of corporate alternative minimum tax while it considers future regulatory guidance, just ahead of a June 15 quarterly payment deadline, says Gunster’s Alan Lederman.

Global Insights

Andreas Medler of ATOZ Tax Advisers explains why Luxembourg investment fund managers should act now to anticipate the upcoming changes of the OECD Pillar Two rules and adapt their procedures in readiness.

Daniel Ngumy, Kenneth Njuguna and James Karanja of ALN Kenya | Anjarwalla & Khanna look at tax measures in the recent Kenya Finance Bill that will impact multinationals and other businesses operating across various sectors.

Commentary

Slashing a quarter of the IRS’s recent funding to reach a debt ceiling deal poses a serious threat to the agency’s progress—a threat that Congress can and should avert, says Chuck Marr of the Center on Budget and Policy Priorities.

Zoe Wyatt and Laura Knight of Andersen LLP comment on a recent report urging the UK government to treat cryptoasset investment as gambling, arguing that this approach sends the wrong message on the credibility and viability of the crypto market.

Columnists

Texas Gov. Greg Abbott (R) has signed a bill requiring electric vehicle owners to pay a $400 registration fee and $200 annual renewal fee starting in September. Andrew Leahey shares why Texas’ tax on electric vehicles could be effective—as long as it’s implemented the right way, with more buy-in from public infrastructure.

Save the Date

Many introverts looking to advance their career may find networking events challenging—or even terrifying. For answers on how to leverage these events and make contacts, join Bloomberg Tax and Bloomberg Law Insights & Commentary teams on June 21 from noon to 1 p.m. ET for How Introverts Can Build a Phenomenal Business Network, part of our free virtual Lunch & Learn series.

Communications executive and entrepreneur Morra Aarons-Mele will have tips about how introverts can use their strengths to get the most out of conferences and happy hours while acknowledging their personal boundaries.

Career Moves

Carin Giuliante has assumed the chair and chief executive officer role of Deloitte Tax LLP.

David Hryck has joined Holland & Knight as a partner in the international private wealth practice in New York.

Matthew Briggs has joined Irwin Mitchell as a partner with the high-net-worth and international tax team in London.

Rebecca Grove has joined Varnum as a partner in the estate planning team in Birmingham, Michigan.

Ignacio Campino has joined Garrigues as a partner in the tax department in Santiago, Chile.

Huw Witty has joined Shakespeare Martineau as a partner with its London corporate team and will focus on tax.

Giulia M. Di Cenzo has joined Ulmer & Berne as an associate in the tax practice group in the Cleveland office.

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

Spotlight

This week’s Spotlight is on Irina Kimelfeld, a tax partner at EisnerAmper and a member of its financial services group in New York City. Kimelfeld offers tax planning and compliance services to private equity funds, hedge funds, investment advisers, and other financial services companies.

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.

• House Republicans—searching for ways to pay for the cuts in their upcoming tax bill—are debating taking another shot at the Inflation Reduction Act’s energy tax credits.
• Australia’s second largest pension fund has joined the boycott of PricewaterhouseCoopers as the fallout of the embattled accounting firm’s tax evasion scandal spreads.
• EV charging stations have landed in the crosshairs of states trying to make up for lost gas tax revenue, even while legislators are using incentives to propel the green energy transition.
• The Biden administration is proposing to trade allies that they extend a coordinated freeze on new digital services taxes beyond its planned expiration at the end of this year, in a bid to salvage a foundering global tax deal.

Solar panels at the Cascadilla Community Solar Farm, owned by Cornell University, in Dryden, New York on April 10, 2023.

Photographer: Bing Guan/Bloomberg via Getty Images

Our Wish List

For June, we’d welcome thoughtful pieces on graduates, including what tax advisers are telling their clients who are just starting out in the workplace and tax-favored strategies related to paying for higher education. We’re also looking for tax pieces focused on travel and tourism. Specifically, we’d love to see how advisers and planners suggest taxpayers maximize tax benefits for vacation and rental homes.

If you have an interesting, never-published article for publication, you can contact our Insights team by email 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

• Maria Menezes (Practice Lead): “Springwatch,” a BBC series following the highs and lows of UK wildlife in peak breeding season. A daily roller coaster of “Did the chicks survive, or did the fox snatch them from the nest?”

Reading

• Katharine Butler (Acquisitions Manager): I just started reading Candice Carty-Williams’ “Queenie,” a novel about Queenie Jenkins, a young British-Jamaican woman living in South London.

Listening

• Andrew Leahey (Columnist): I’ve been listening to “Wingspan” by Paweł Górniak. The album is the score from the video game version of a tabletop card game of the same name. Before you roll your eyes and decide it isn’t for you, give it a listen!

Be Social

Follow Bloomberg Tax on Twitter, Facebook, Instagram, and LinkedIn—and check out Bloomberg Law on TikTok.

We also have a growing LinkedIn group where our authors, contributors, and readers can share tax-related stories and exchange ideas. We hope you’ll join the conversation!