As of this writing, forecasters are predicting three to five inches of snow in southeastern Pennsylvania. Kids are naturally excited, just like me. A former southerner, I still never tire of the snow, even when it disrupts my day.
But there are limits, even for the most enthusiastic snow fan.
A snowstorm swept through the DC area on Monday morning, wreaking havoc on roads and knocking down power lines. Motorists, including Virginia Senator Tim Kaine, were stranded Monday night through Tuesday.
Amtrak trains were also stopped when snow-covered trees fell on the tracks, and flights were delayed and canceled all along the east coast.
By the time the sky cleared, up to 11 inches of snow had fallen over the area.
Snow fell in other areas from Alabama to Pennsylvania, causing work stoppages and power outages. New Jersey Gov. Phil Murphy (R) has called for a state of emergency for several counties, with photos of friends showing snow-capped porches just a day after temperatures soared in the ’60s.
Variations on the storm had been forecast for several days, but I don’t know of anyone who is expecting this particular outcome. The reality is, we like certainty. This is as true of weather as it is of business and taxation.
Unpredictability can be a handicap on the roads and in the tax world. It is essential to make sense of what might be on the way and plan accordingly. Fortunately, this week, as always, our experts have the latest federal, state and international tax analysis to help you stay on top of the latest developments, so you don’t get stuck in the cold.
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Quick numbers quiz
Speaking of risky time, a review by the Inspector General of the Treasury for Tax Administration (or TIGTA) of tax returns for the 2019 tax year identified 34,699 tax returns that claimed a deduction for losses in accident and theft. How many of these returns had a FEMA number that did not match the FEMA number on the taxpayer’s tax account, had an invalid FEMA number, or were missing the FEMA number?
This week, our experts covered a wide range of topics, from New Year’s tax updates to nonprofits. For an overview of what is in the news, here is our overview (on snow):
Change has been rapid in the UK after Brexit. In Brexit in 2022 — What’s Next for VAT and Customs ?, Robert Marchant of Crowe reviews major changes to UK value added tax and customs compliance obligations over the course of last year due to Brexit and is considering further changes to come in 2022.
The unpredictability of this week’s weather has been nothing compared to the pandemic. Covid has reshaped the world, including the way we buy. The way we choose our goods and services can have tax consequences. In The Trends Shaping Sales Tax Compliance and Controversy in 2022, Liz Armbruester of Avalara shares some of the key trends that will shape sales tax in 2022.
New tax measures blow over Mexico in the new year. In Mexico’s Tax Reform 2022, Jorge Correa and Diego Rico de Creel, García-Cuéllar, Aiza y Enríquez SC explain recent tax reforms in Mexico, which include several provisions relating to corporate reorganization, transfer pricing requirements and reporting obligations for businesses, and they examine the potential impact on taxpayers.
The big resignation had an impact on law firms across the country, leaving many out in the cold. In Legal hiring lessons learned during the pandemic, Michelle Foster, Founder and Managing Partner of Foster Group, a firm specializing in legal recruiting, explains how her company and legal recruiters have adapted to changes in the legal industry and the workplace over the past year.
Theories about the timing and scope of the proposed global tax deal have swirled like snowflakes, and for good reason. On December 20, 2021, the OECD published model rules for the 15% global minimum tax on large multinational companies. Two days later, the European Commission published a draft European directive incorporating the same rules. In Global Minimum Taxation for Large Multinationals, Jeff VanderWolk of Squire Patton Boggs discusses the rules and some of the many issues they raise.
Taxpayers don’t always plan ahead, letting some tax professionals dig them up. This can be especially difficult in situations like expatriation, where timing is critical. In Timing Considerations for Expatriation, Tax Compliance and Form 8854, Virginia La Torre Jeker examines the challenges taxpayers face if they act first and ask questions later.
Revenue issues have led to a frosty relationship between some municipalities and nonprofits. In many cities across the United States, large nonprofit hospitals, health centers, universities, and colleges – “meds and eds” – pay little or no property taxes. In “Non-Charitable” A non-profit hospital ordered to start paying property taxes, Bill Kennedy and Jared Johnson of White and Williams, LLP, warn that the lawsuits are now calling into question their non-profit nature.
Opinion and commentary
The IRS’s proposal to have more access to banking information received a cold reception. In Should the IRS Be Trusted With Your Data ?, Stephen L. Carter explains his concerns about privacy following a scathing new report from the U.S. Treasury Department’s Inspector General of the Tax Administration on the IRS’s ability to protect data.
Columnists and contributors
Remember how when you were a kid you spent a lot of time getting dressed to go out and play in the snow, only to find when you got to the door that it had already warmed up? And you still needed to change? The world of taxation can feel like this sometimes, and we expect even more changes in 2022.
Labor shortages have snowballed since the pandemic, leading to potential problems for accounting firms, issues that cannot necessarily be addressed with higher wages and bonuses. In this week’s episode of Talking Tax, Bloomberg Tax reporter Amanda Iacone speaks with three accountants about what they expect from their profession in 2022. In addition to the “big resignation,” they also talk about getting involved. comply with new ESG reporting rules and keep abreast of new regulations from the Financial Accounting Standards Board.
Sales tax winds can be fickle. On a Recent episode of the Taxgirl podcast, I spoke with Liz Armbruester of Avalara about sales tax developments and challenges since the start of the pandemic and what that could mean for the future.
Our Spotlight series shines a light on the careers and lives of tax professionals around the world. This week’s Spotlight is on Ian Comisky, partner in the Philadelphia office of Fox Rothschild LLP. Comisky has over 35 years of experience representing businesses and individuals in civil and criminal tax litigation, white collar criminal defense, and complex corporate and commercial litigation.
To catch up
It’s been a busy week in tax news from state capitals to DC Here are some of the stories you may have missed from our Bloomberg Tax News team:
* Note: Your Bloomberg Tax ID will be required to access Tax News.
At Bloomberg Law, we pride ourselves on our continued efforts to showcase the next generation of leaders in the legal profession.
We are excited to announce our 2022 call for nominations for “They’ve Got Next: The 40 Under 40,” Bloomberg Law’s special report recognizing the accomplishments of remarkable young lawyers nationwide.
Here are the nomination and submission criteria instructions.
Quick response to numbers
TIGTA found that 12,075 of those returns, or 35%, had a FEMA number that did not match the FEMA number on the taxpayer’s tax account, had an invalid FEMA number, or lacked the FEMA number. This works out to $ 309 million in deductions, or about $ 41.3 million in tax underpayments.
We also have growth LinkedIn group where our authors, contributors and readers can share tax-related stories and exchange ideas. We hope you join the conversation!
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