When I first moved to Philadelphia, it was pretty easy to peg me as an out-of-towner. No, it wasn’t my funny accent or big hair, nor my penchant for putting peanuts in my Diet Coke. I broke a cardinal rule: I called a hoagie a sub sandwich.
The word hoagie is ubiquitous in Philadelphia—the term was reportedly coined here. The generally accepted story is that Italians working at the old Navy Yard on Hog Island would put meat, cheese, and lettuce between two slices of bread. It was first called the Hog Island sandwich and eventually shortened to “Hoggies” and then, hoagie.
Today, I’m fairly certain that you’re not allowed to reside inside the city limits without a favorite hoagie (mine: mixed cheese with hot peppers and pickles).
But while hoagies are all the rage in Philadelphia, sandwiches are popular all over the world. They come in different forms—panini, subs, croque monsieurs, club sandwiches, banh mi, chip butties, bocadillo, and po’ boys—but the idea is the same.
The sandwich allegedly got its name from John Montagu, the 4th Earl of Sandwich. Reportedly, he ordered meat between two pieces of bread so that he could continue playing cards without needing a fork. While the food had existed for years in various forms, it finally had a name.
Today, sandwiches are called by all kinds of names. Some eateries, like Potbelly and Subway, have even built their entire success on the (bread) heels of the sandwich.
But it took a bit for sandwiches to gain popularity in the US. In 1952, the Wheat Flour Institute and other groups organized a public relations campaign, which eventually included a recipe contest. That turned into National Sandwich Month, which is observed in, as you’ve probably guessed, August.
There are only a few days left in the month to celebrate—ideally, with a sandwich. It is the ultimate on-the-go food, something busy professionals know a little about; we love anything that can help us save time.
And at Bloomberg Tax, our experts offer great commentary and insightful analysis on federal, state, and international tax issues to help you be as efficient as possible. When it comes to tax, we don’t ever want you to find yourself in a pickle.
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Quick Trivia
In 2019, the NY Department of Taxation and Finance released TB-ST-835, which stated that sandwiches, generally subject to sales tax, included those that “are prepared and ready to be eaten, whether made on bread, on bagels, on rolls, in pitas, in wraps, or otherwise, and regardless of the filling or number of layers.” In addition to the sandwiches you’d expect—like BLTs and peanut butter and jelly—the bulletin included a controversial pick. What food, which means “little donkey” in Spanish, was deemed a sandwich?
Answer at the bottom.
State Insight
Since June 1, New York’s Cannabis Control Board has issued 162 recreational cultivation licenses. But businesses fortunate enough to obtain one of its recreational cannabis licenses will be forced to contend with a belting of state and local taxes, say AB FinWright’s Simon Menkes, Abraham Finberg, and Rachel Wright.
Federal Insights
Some blockchain advocates say the technology is doing for money what the internet did for information. Accountants must evolve to help their clients navigate the revolution, or else their clients will look elsewhere, says David Canedo, head of tax and compliance strategy at Accointing.com.
Timekeeping is necessary in both the accounting and law industries, but the way it’s handled differs. If accounting firms took a note from law firms on using technology for timekeeping measures, they’d surely benefit, say Linda Long and Jill Nelson of Intapp.
Regarding NFTs and the potential implementation of sales taxes on blockchain transactions, lawmakers should embrace the challenge of providing clear and comprehensive guidance that aids compliance, says Charles Maniace of Sovos.
Organizations are facing pressure to be more transparent in their ESG reporting. James Paterson of CCH Tagetik at Wolters Kluwer looks at reporting developments, potential benefits of new guidance, and ESG reporting challenges.
Global Insights
In the latest article in the “In Focus” series, Jacob Zwaan of KPMG Advisory Indonesia looks at the tax environment for multinational companies in Indonesia, including potential obstacles when investing and the incentives available, and discusses recent and potential developments in tax laws and regulations.
Daida Hadzic and Daniel Foster of KPMG discuss preferential tax regimes available to mobile individuals in many member states of the EU and predict their curtailment or abolition.
Henrique Munia e Erbolato of Santos Neto Advogados and Daniel G. P. Orsini Marcondes of Schmid & Orsini Advogados discuss the impact that Pillar One will have on Brazil’s transfer pricing rules.
Commentary
The IRS’s 1996 interpretation of the term “physical injuries” is outdated and unfairly taxes victims of invisible injuries, including many instances of sexual abuse and PTSD, say Structured Consulting’s Jeremy Babener, Precision Resolution’s Paul Isaac Jr., Sage Settlement Consulting’s Rebekah Miller, and Settlement Planning Services’ Tacker LeCarpentier.
The Inflation Reduction Act’s long-term funding boost for IRS should be a game changer for tax administration, taxpayers, and tax professionals. The agency should have a clear plan, skilled staff, and reasonable oversight to make wise spending decisions, says David King of Optima Tax Relief.
Freddie Digby of Adsum argues that businesses must rethink how they view tax if they want a competitive edge with myriad economic challenges and lending at an all-time low. Research and development tax credits, film, TV, video game industry tax credits, and even value-added tax refunds, can and should be leveraged as an asset to secure on-demand finance.
Student Writing Competition
We’re excited to publish the winning submissions as part of the second Bloomberg Tax Insights & Commentary student writing competition. The contest highlights the very best of student writing.
Our process began in April when we posted our call for submissions. After that, a panel of judges from the Bloomberg Tax team reviewed the entries and scored them on points from organization to voice and style. Our two winners represent the best new talent in the tax profession.
Our winning entries are:
- Let’s Use Tax Incentives to Help Solve Homelessness Problems from University of Illinois at Urbana-Champaign student Roberta S. Davis
- Texas Will Provide Homeowners Tax Relief, But It’ll Cost Them from Texas A&M Mays School of Business student Zach Engelhart
A Closer Look
Practitioners who know the differences between International Financial Reporting Standards and US Generally Accepted Accounting Principles will be better equipped to help with preparing or reviewing the income tax provision, says Crowe’s Chris Kobylewski in this edition of “A Closer Look.”
Reader Responses
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.
Columnists
This year, the IRS made significant changes to ensure that all taxpayers should receive tax information in a format that is accessible to them. I asked the IRS and various organizations to talk about what’s different—and what they’d like to see happen next.
Recent threats against the IRS are a reminder of the importance of civility—especially in the tax profession. I think we need to do better.
Earlier versions of the Inflation Reduction Act included a provision to close the carried interest loophole, but it was taken out by the time the legislation was signed into law. Despite its removal, it will likely remain in Democratic crosshairs, writes Andrew Leahey.
Listen In
Tax directors around the world are grappling with a two-pillar global tax agreement that will require multinational companies to change where and how much tax they pay. In this episode of Talking Tax, Bloomberg Tax senior reporter Hamza Ali speaks with Mark Munsel, general manager of the OECD digital project at Rio Tinto PLC, part of the OECD’s business advisory group. Munsel heads up the multi-disciplinary team at the company tasked with figuring out how the rules work.
Get Caught Up
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.
- Multinational corporations and developing countries disagree sharply on whether the global tax deal’s reallocation rules should account for withholding taxes.
- A commitment to stop countries from enacting digital taxes should be political, not part of a treaty to implement the global tax deal, the governments of Nigeria and Kenya said.
- The sharing of charity information between the IRS and states potentially opens doors for better enforcement, but the IRS’ privacy and confidentiality requirements are a historically proven obstacle for states.
- The billions in student loan debt forgiveness announced by the Biden administration will be exempt from federal taxation but could be taxable at the state level in more than a dozen states—a hiccup many states are expected to handle quickly.
Spotlight
Our Spotlight series highlights the careers and lives of tax professionals across the globe. This week’s focus is on Bruce C. Wood, a business appraiser specializing in IRS-related valuation matters for Brady Ware Arpeggio, LLC in Alpharetta, Ga.
Career Moves
Missy Munoz has joined Frazier & Deeter as the leader of its environmental, social, and governance services team, the firm announced.
Grant Thornton LLP has admitted 38 new partners and principals and promoted 58 professionals to managing director, the firm announced.
Frank Marano has joined Dentons LLP as a shareholder in the tax group in Pittsburgh, the firm announced.
Thomas Manisero has joined PKF O’Connor Davies as general counsel and chief legal officer in New York to oversee legal function, the firm said.
Mary Pierce, owner of Pierce & Company LLC, has joined Dark Horse CPAs, expanding its presence in the Florida market, the firm announced.
If you are changing jobs or being promoted, let us know. You can email your submission to TaxMoves@bloombergindustry.com for consideration.
Quick Trivia Answer
The bulletin declared that a burrito was a sandwich—alongside another controversial pick: hotdogs.
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