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Week in Insights: The Next 122,400 Minutes

Jan. 23, 2022, 3:00 PM

The IRS will officially open tax season this week—on Monday, Jan. 24, 2022—with tax practitioners and taxpayers hoping it will be as close to normal as possible. With a tax filing season deadline for individuals of April 18, 2022 (April 19 for taxpayers in Maine and Massachusetts), the tax filing season for federal income tax purposes will be 85 days (86 days for taxpayers in Maine and Massachusetts).

A technician checks hanging clocks at a workshop of a clock company in Yantai, in eastern China’s Shandong province on December 15, 2020.
Photographer: STR/AFP via Getty Images

It doesn’t feel like a long time. But, to put it in perspective, in that same time frame, you could:

  • Travel to the moon and back 14 times—it takes about 3 days for a spacecraft to travel at least 240,000 miles to reach the moon;
  • Watch the entire Harry Potter movie series 102 times—if you skip breaks;
  • Cycle the 2022 Tour de France tour route—according to the race guidelines—three times;
  • Learn basic fluency in two FSI Group 1 languages (French, German, Indonesian, Italian, Portuguese, Romanian, Spanish, and Swahili), assuming you study ten hours per day; or
  • Read the world’s longest novel, 'À la recherché du temps perdu'—or ‘In Search of Lost Time'— by Marcel Proust, cover to cover 17 times.

And in that same period, taxpayers will submit 160 million individual federal income tax returns—take or leave a few million taxpayers who will file on extension.

That number doesn’t include corporate returns, partnership returns, charitable organization returns, estate and gift tax returns, international tax returns, and excise returns filed throughout the year—nor does it include state and local returns.

You get the picture: Tax professionals will certainly be busy in 2022.

At Bloomberg Tax, we know there are only so many hours in the day—and only so many days during tax season. And this week, as always, our experts have the latest federal, state, and international tax analysis to help you stay a step ahead.

The Exchange… It’s where great ideas intersect.

—Kelly Phillips Erb

Quick Numbers Trivia

What was the federal income tax rate for most taxpayers in 1913, the year of the first modern tax return in the U.S.?
Answer at the bottom.

Our Roundup

This week, our experts touched on a wide range of topics, from transfer pricing to indirect taxation. For a look at what’s making news, here’s our roundup:

In Italy—Transfer Pricing Adjustments and Their Impact on VAT and DAC6, Giuliana Polacco and Annarita De Carne of Bird & Bird consider recent rulings by the Italian Revenue Agency to provide guidance and clarity in response to taxpayers’ requests regarding the VAT and DAC6 implications of transfer pricing adjustments.

Transfer pricing looks to be a key issue this year. In a three-part series, Danny Beeton of Arendt & Medernach SA, summarizes some critical transfer pricing cases of 2021 and analyzes them in the context of each other to identify themes and trends.

In The Year Ahead in Global Indirect Tax, Alex Baulf of Avalara considers the global developments and trends in indirect tax we might expect to see in 2022.

In Determining the Buyer’s VAT Status in EU E-Commerce Transactions, Koert Bruins of Deloitte Netherlands explains the robust processes necessary for a supplier to determine the VAT status of a customer to ensure the correct tax treatment of each transaction and prevent potential losses and penalties.

In Case You Missed It

Gearing up for tax season can be a blur. Here are some updates from earlier that you might have missed:

Reporting rules are changing for certain businesses beginning in 2022. In New Form 1099 Reporting Coming in 2022, Debbie Pflieger of EY’s Financial Services Organization, highlights what you need to know about Form 1099-K, Payment Card and Third-Party Network Transactions.

In many US cities, large, nonprofit hospitals, health centers, universities, and colleges—"meds and eds"—pay little, if any, property taxes. That could be changing. In ‘Non-Charitable’ Nonprofit Hospital Ordered to Start Paying Property Taxes, Bill Kennedy and Jared Johnson of White and Williams, LLP, warn that litigation is now challenging their nonprofit nature.

An estate tax charitable deduction isn’t always guaranteed—especially when there are questions about how much may be ultimately distributed to charity. In Recent Case Highlights Risk of Denial of Estate Tax Charitable Deduction, Richard L. Fox of Buchanan Ingersoll & Rooney looks at a recent case that focuses on this issue.

Opinion & Commentary

In Puerto Rico’s Bankruptcy Exit Isn’t Finish Line, Brian Chapatta reflects on the news that Puerto Rico’s bankruptcy judge had approved its debt-restructuring plan. The island has had a drawn-out struggle with its creditors, Chapatta recalls, dating back to when he helped chronicle its financial collapse as part of Bloomberg News’s municipal-bond team in the mid-2010s.

In what Timothy O’Brien calls “a victory for the rule of law and the separation of federal powers,” the Supreme Court said that a bipartisan congressional committee investigating the Jan. 6 insurrection can review some of former President Donald Trump’s White House records. O’Brien looks at the case in The Jan. 6 Committee Scores Victory Over Trump.

Columnists & Contributors

While I know that many of my fellow tax professionals would argue that tax season never officially ended last year, the new tax filing season will be starting soon. From start dates to extension dates, here’s what you need to know.

Listen In

Rep. Kevin Brady (R-Texas), the top Republican on the powerful House Ways and Means Committee, is planning one final legislative push before he retires at the end of this Congress. On the latest episode of our weekly Talking Tax podcast, Brady discusses his impending retirement with Bloomberg Tax reporter Kaustuv Basu the legislation he hopes to advance before he leaves, and offers his thoughts on how to make the IRS more customer friendly.

Get Caught Up

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

  • President Joe Biden said his $2 trillion economic agenda will have to be broken up so that a scaled back version can pass Congress in the face of resistance in his own party that’s stalled the expansive package.
  • What should states do with extra cash? A 7% teacher pay bump in New Mexico, a record increase in education spending in Kentucky, and bonuses for school bus drivers in South Carolina are just some of what’s in U.S. governors’ ambitious spending plans.
  • The Maryland Comptroller has issued a tax alert on a new extended deadline for individual income tax returns and payments granted due to the COVID-19 pandemic.
  • Canada’s plans to introduce a tax credit for carbon capture in the country’s oil patch would amount to a fossil fuel subsidy for an ineffective technology, a group of academics said in a letter to the deputy prime minister.
  • House lawmakers introduced a bipartisan bill that would strip the International Olympics Committee of its tax-exempt status.
  • Texas billionaire Robert Brockman, who is currently on trial fighting criminal tax charges, sued the government Thursday to halt a special procedure for immediately assessing more than $1.4 billion in taxes, penalties, and interest against him.

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


Our Spotlight series highlights the careers and lives of tax professionals across the globe. This week’s Spotlight is on Gerry McCarthy, Managing Director at CBIZ MHM, LLC in Boston. McCarthy has over 36 years of experience working in public accounting and industry, and is focused on providing tax consulting and compliance services to all segments of the insurance market.

Be Noticed

At Bloomberg Law, we’re proud of our continuing efforts to highlight the next generation of leaders in the legal profession.

We’re thrilled to announce our call for 2022 nominations for “They’ve Got Next: The 40 Under 40,” Bloomberg Law’s special report recognizing the accomplishments of sterling young lawyers nationwide.

Here are nomination criteria and submission instructions.

Quick Numbers Answer

The tax rate for taxable income of up to $20,000 ($563,236.36 in today’s dollars) was 1% for the 1913 tax year. The additional tax—or super tax—on amounts over $20,000 was calculated on a graduated scale of up to 6%.

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What Did You Think?

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To contact the reporter on this story: Kelly Phillips Erb in Washington at

To contact the editor responsible for this story: Jeff Harrington at

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