Week in Insights: Crash Landing Into Something New – Bloomberg Tax

안녕하십니까.

No need to Google. If all went well, that should be hello in Korean. It’s pretty formal—how you’d address a business partner.

Of course, I like to think we’re friends now. So I could also use the polite and respectful greeting, 안녕하세요.

No, I’m not fluent in Korean. But I’m learning.

A few weeks ago, my family was poking around Netflix for something to watch together since most of our favorites, like “Ted Lasso,” “Only Murders in the Building,” and “Derry Girls,” are currently on a break in the US—yes, I’m aware that our friends across the pond have already watched the finale of “Derry Girls.” No spoilers!

Actress Son Ye-Jin, who starred in “Crash Landing On You” walks on the red carpet at the 22nd Busan International Film Festival in Busan, South Korea, on Oct. 12, 2017.

Photographer: JUNG YEON-JE/AFP via Getty Images

We settled on “Crash Landing on You”—a wildly popular South Korean television show. The premise feels ridiculous: A successful South Korean businesswoman accidentally paraglides over the border into the North Korean side of the Demilitarized Zone (DMZ). The show was, however, inspired by a real-life event—a South Korean actress and three others became lost while on a boat trip and drifted close to the Northern Limit Line (NLL). They realized their mistake after encountering a group of North Korean fishermen before eventually being rescued by the Navy.
My whole family, including my husband, was quickly hooked despite the outlandish premise. It is swoony, funny, suspenseful, and heartbreaking all at once—plus, we’re learning something about the culture. It inspired me to dig a little deeper: I even found articles and scholarly papers about the interplay of North and South Korean cultures in the show.

Don’t expect to binge watch—each episode is as long as a mini-movie. We’ve been watching long enough to do some planning. Last week, we ordered from our favorite Korean restaurant, and I even tried my hand at making some Korean staples. (I don’t mean to brag, but it was pretty delicious.)

View of cabbage kimchi dumplings finished dish during Chef Judy Joo’s Korean Food Made Easy class at New York Culinary Experience on April 16, 2016.

Photographer: Neilson Barnard via Getty Images for the New York Culinary Experience

The show is in Korean with subtitles. That inspired my daughter and me to learn some basic Korean by trying Duolingo and watching video tutorials. I’m no Jisoo, but I can utter and type a few words—if you need to say “yes” or order chicken in Korean, I might be able to help.

It has been a great reminder of how fun it can be to step outside of your comfort zone and try things that are literally foreign to you. I highly recommend doing something similar. And while I’m all for picking up a new language or watching something different, you can dip your toes into something a little less radical, too.

We can help.

Over the last several weeks, we’ve covered such wide-ranging topics as a deep dive into estate and succession planning in the Middle East and an overview of the tax framework in Angola, including opportunities for local and foreign investors. We’ve looked at an ambitious project on the state taxation of partnerships and the tax consequences of the New York Cannabis Control Board’s recreational cannabis licenses. That’s in addition to our great roundup below.

At Bloomberg Tax, we aim to make it easy for you to learn something new. Our experts offer great commentary and insightful analysis on federal, state, and international tax issues—no Google Translate required.

The Exchange… It’s where great ideas intersect.

—Kelly Phillips Erb

Quick Trivia

Korean actress Jo Bo-ah, also known as Cho Bo-ah, has won several awards, including Best New Actress at the Seoul Awards (2018) and Grimae Awards (2015). In 2022, she was awarded what honor from South Korea’s National Tax Service (NTS)?
Answer at the bottom.

State Insights

Exemption planning is a fundamental part of estate planning. Brown & Streza’s Dustin I. Nichols shares how California residents can use creditor exemptions to help protect their retirement assets.

Very few states have issued guidance explaining whether the sale of an NFT is subject to sales and use tax. Whatever a state’s description of what is taxable, the real question is whether that description is consistent with the statute and regulations, say Cozen O’Connor tax attorneys Joseph C. Bright, Cheryl A. Upham, and Heidi R. Schwartz.

Federal Insights

As research expenses under IRC Section 174 become subject to capitalization and amortization, businesses that pay for research conducted outside of the US could see a significant increase in taxable income. Plante Moran’s Robert Piwonski, Caitlin Slezak, and Jay Woods explain how.

While e-invoicing hasn’t yet made its way into the US tax system, US businesses participating in the global economy will be affected. And as we inch closer to a world driven by real-time compliance, technology investments will enable the exchange of invoice data and tax funds at the time of the transaction, says Avalara’s Liz Armbruester.

Too many investors lack knowledge of all the tax advantages that can come with supporting nonprofits. DonateStock’s Steve Latham looks at the challenges for financial advisers in educating their clients, plus what could help close the education gap.

The climate piece of the Inflation Reduction Act is expected to have a far-reaching impact as it overhauls a significant swath of the federal tax code. Sean Moran, Lauren Collins, and Mary Alexander of Vinson & Elkins share the new law’s four central themes: breadth, flexibility, environmental justice, and domestic strength.

Educational costs are on the rise. Tax professionals should advise their clients to take advantage of 529 plans to help save for their children’s education, says Susan Allen of the American Institute of Certified Public Accountants.

Global Insights

Russell Brown of Sovos examines the challenges faced by British insurers following the UK’s exit from the EU and the impact of Brexit on insurance premium tax.

Kunal Savani, Bipluv Jhingan, and Lakshya Gupta of Cyril Amarchand Mangaldas discuss the decision and possible ramifications of an Indian tax tribunal to reject a company’s claim to set off losses related to the demerger of one of its subsidiaries.

Alfredo Collosa discusses global and regional initiatives in tax transparency and exchange of information to help governments combat tax evasion, in particular evaluating the progress in Latin American countries.

Kim So-yeon and Jang In-seob act on the set of a South Korean TV drama “Gahwamansasung” by Munhwa Broadcasting Corp. on April 25, 2016, in Incheon, South Korea.

Photographer: Jean Chung/Getty Images

Commentary

Without public country-by-country reporting, investors have little knowledge about the tax strategies of companies they own and the degree to which they may be engaging in risky tax behavior. The Securities and Exchange Commission must address the chasm between what companies know and what they disclose to investors, says Ian Gary of the FACT Coalition.

The US beer industry has paid more than $1.4 billion in aluminum tariffs since 2018. Alex Davidson of the Beer Institute shares how the tariffs—compounded by challenges from the Covid-19 pandemic, rising inflation, and supply chain issues—are putting a significant burden on the industry, which supports more than 2 million jobs.

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

A bill pending in Congress would require certain service providers, lawyers, accountants, and other tax professionals to act as “gatekeepers” for purposes of reporting suspicious financial transactions. So far, the response to the bill has been mixed. Here’s my summary of what you need to know.

Listen In

The IRS is seeking to prevent new, potentially abusive transactions from gaining traction with taxpayers. Early this year, the agency launched a group called the Joint Strategic Emerging Issues Team to identify areas with a high risk of noncompliance and determine how best to address these issues.

On this episode of Talking Tax, Bloomberg Tax senior reporter Naomi Jagoda speaks with Benjamin Swartz, senior adviser to the commissioner of the Small Business/Self-Employed Division, and Holly Porter, associate chief counsel for pass-throughs and special industries, about the goals of JSEIT, the makeup of the team, and the types of issues involved.

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.

Spotlight

Our Spotlight series highlights the careers and lives of tax professionals across the globe. This week’s Spotlight is on Arianna Campbell, a shareholder and consultant at Boomer Consulting Inc., a business management company for CPAs in Kansas City, Mo.

Career Moves

Sebastiaan Wijsman has joined Dentons as a partner in the tax practice in the Amsterdam office, the firm said.

Alan Gutierrez-Arana has joined Mazars as a principal in its cyber practice in New York, the firm announced.

Chamber Hrdlicka has added three attorneys to its international tax and tax controversy services in San Antonio, Texas, the law firm said.

Kevin Hengst has joined Pannell Kerr Forster of Texas PC as a new director of the audit team, the firm said in a statement.

Eduardo Arista has joined Holland & Knight LLP as a partner in the private wealth services team in Miami, the law firm announced.

William M. Doyle, Lawrence M. Kern, and Eric C. Nelson have joined Greenberg Traurig, LLP from Winston & Strawn LLP as shareholders in Chicago, the firm said in a statement.

Frazier & Deeter has hired Kandace Freeman as the diversity, equity, and inclusion program manager in Atlanta, the firm said.

Shail Shah has joined Greenberg Traurig as shareholder in the San Francisco office, 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.

Events

The National Association of Tax Professionals will be hosting workshops to help tax preparers get ready for a busy tax season in more than 70 locations throughout the country for in-person attendance. Virtual options are also available.

The National Association of Tax Professionals will be offering a series of tax forums throughout the country. The three in-person locations include Orlando (Sept. 19-20), Atlantic City (Sept. 29–30), and Las Vegas (Oct. 19–20).

If you’re hosting an industry-wide event, let us know. You can email your submission to TaxEvents@bloombergindustry.com for consideration.

Don’t Miss

Bloomberg Tax Insights is hosting its monthly virtual Lunch & Learn series with “What Tax Pros Need to Know About Retirement” on Sept. 21 from noon to 1 p.m. EDT.

We’ve recruited a top financial adviser who can help you prepare for your post-professional life. Matthew Grieb is a certified financial planner with Raymond James in the Washington, D.C., area. His practice focuses on sophisticated wealth management planning for business owners creating generational wealth, as well as for high-income specialty professions.

Quick Trivia Answer

Cho Bo-ah and Shin Dong-yeop attend the 29th Seoul Music Awards at Gocheok Sky Dome on Jan. 30, 2020 in Seoul, South Korea.

Photographer: Chung Sung-Jun via Getty Images

Jo Bo-ah received a presidential award as an exemplary taxpayer on March 3, 2022—the country’s annual Taxpayers’ Day. She will act as an honorary tax ambassador for the NTS.

Subscribe

Sign up for your free copy of our newsletter delivered to your inbox each week. Just head over to The Exchange and sign up using the green “Free Newsletter Signup” box at the top—or just go directly to the newsletter sign up page.

What Did You Think?

Your feedback and suggestions are important to us, so don’t hesitate to reach out on social or email me directly at kerb@bloombergindustry.com.

Spread the love

Leave a Reply

Your email address will not be published.

Week in Insights: Crash Landing Into Something New – Bloomberg Tax

안녕하십니까.

No need to Google. If all went well, that should be hello in Korean. It’s pretty formal—how you’d address a business partner.

Of course, I like to think we’re friends now. So I could also use the polite and respectful greeting, 안녕하세요.

No, I’m not fluent in Korean. But I’m learning.

A few weeks ago, my family was poking around Netflix for something to watch together since most of our favorites, like “Ted Lasso,” “Only Murders in the Building,” and “Derry Girls,” are currently on a break in the US—yes, I’m aware that our friends across the pond have already watched the finale of “Derry Girls.” No spoilers!

Actress Son Ye-Jin, who starred in “Crash Landing On You” walks on the red carpet at the 22nd Busan International Film Festival in Busan, South Korea, on Oct. 12, 2017.

Photographer: JUNG YEON-JE/AFP via Getty Images

We settled on “Crash Landing on You”—a wildly popular South Korean television show. The premise feels ridiculous: A successful South Korean businesswoman accidentally paraglides over the border into the North Korean side of the Demilitarized Zone (DMZ). The show was, however, inspired by a real-life event—a South Korean actress and three others became lost while on a boat trip and drifted close to the Northern Limit Line (NLL). They realized their mistake after encountering a group of North Korean fishermen before eventually being rescued by the Navy.
My whole family, including my husband, was quickly hooked despite the outlandish premise. It is swoony, funny, suspenseful, and heartbreaking all at once—plus, we’re learning something about the culture. It inspired me to dig a little deeper: I even found articles and scholarly papers about the interplay of North and South Korean cultures in the show.

Don’t expect to binge watch—each episode is as long as a mini-movie. We’ve been watching long enough to do some planning. Last week, we ordered from our favorite Korean restaurant, and I even tried my hand at making some Korean staples. (I don’t mean to brag, but it was pretty delicious.)

View of cabbage kimchi dumplings finished dish during Chef Judy Joo’s Korean Food Made Easy class at New York Culinary Experience on April 16, 2016.

Photographer: Neilson Barnard via Getty Images for the New York Culinary Experience

The show is in Korean with subtitles. That inspired my daughter and me to learn some basic Korean by trying Duolingo and watching video tutorials. I’m no Jisoo, but I can utter and type a few words—if you need to say “yes” or order chicken in Korean, I might be able to help.

It has been a great reminder of how fun it can be to step outside of your comfort zone and try things that are literally foreign to you. I highly recommend doing something similar. And while I’m all for picking up a new language or watching something different, you can dip your toes into something a little less radical, too.

We can help.

Over the last several weeks, we’ve covered such wide-ranging topics as a deep dive into estate and succession planning in the Middle East and an overview of the tax framework in Angola, including opportunities for local and foreign investors. We’ve looked at an ambitious project on the state taxation of partnerships and the tax consequences of the New York Cannabis Control Board’s recreational cannabis licenses. That’s in addition to our great roundup below.

At Bloomberg Tax, we aim to make it easy for you to learn something new. Our experts offer great commentary and insightful analysis on federal, state, and international tax issues—no Google Translate required.

The Exchange… It’s where great ideas intersect.

—Kelly Phillips Erb

Quick Trivia

Korean actress Jo Bo-ah, also known as Cho Bo-ah, has won several awards, including Best New Actress at the Seoul Awards (2018) and Grimae Awards (2015). In 2022, she was awarded what honor from South Korea’s National Tax Service (NTS)?
Answer at the bottom.

State Insights

Exemption planning is a fundamental part of estate planning. Brown & Streza’s Dustin I. Nichols shares how California residents can use creditor exemptions to help protect their retirement assets.

Very few states have issued guidance explaining whether the sale of an NFT is subject to sales and use tax. Whatever a state’s description of what is taxable, the real question is whether that description is consistent with the statute and regulations, say Cozen O’Connor tax attorneys Joseph C. Bright, Cheryl A. Upham, and Heidi R. Schwartz.

Federal Insights

As research expenses under IRC Section 174 become subject to capitalization and amortization, businesses that pay for research conducted outside of the US could see a significant increase in taxable income. Plante Moran’s Robert Piwonski, Caitlin Slezak, and Jay Woods explain how.

While e-invoicing hasn’t yet made its way into the US tax system, US businesses participating in the global economy will be affected. And as we inch closer to a world driven by real-time compliance, technology investments will enable the exchange of invoice data and tax funds at the time of the transaction, says Avalara’s Liz Armbruester.

Too many investors lack knowledge of all the tax advantages that can come with supporting nonprofits. DonateStock’s Steve Latham looks at the challenges for financial advisers in educating their clients, plus what could help close the education gap.

The climate piece of the Inflation Reduction Act is expected to have a far-reaching impact as it overhauls a significant swath of the federal tax code. Sean Moran, Lauren Collins, and Mary Alexander of Vinson & Elkins share the new law’s four central themes: breadth, flexibility, environmental justice, and domestic strength.

Educational costs are on the rise. Tax professionals should advise their clients to take advantage of 529 plans to help save for their children’s education, says Susan Allen of the American Institute of Certified Public Accountants.

Global Insights

Russell Brown of Sovos examines the challenges faced by British insurers following the UK’s exit from the EU and the impact of Brexit on insurance premium tax.

Kunal Savani, Bipluv Jhingan, and Lakshya Gupta of Cyril Amarchand Mangaldas discuss the decision and possible ramifications of an Indian tax tribunal to reject a company’s claim to set off losses related to the demerger of one of its subsidiaries.

Alfredo Collosa discusses global and regional initiatives in tax transparency and exchange of information to help governments combat tax evasion, in particular evaluating the progress in Latin American countries.

Kim So-yeon and Jang In-seob act on the set of a South Korean TV drama “Gahwamansasung” by Munhwa Broadcasting Corp. on April 25, 2016, in Incheon, South Korea.

Photographer: Jean Chung/Getty Images

Commentary

Without public country-by-country reporting, investors have little knowledge about the tax strategies of companies they own and the degree to which they may be engaging in risky tax behavior. The Securities and Exchange Commission must address the chasm between what companies know and what they disclose to investors, says Ian Gary of the FACT Coalition.

The US beer industry has paid more than $1.4 billion in aluminum tariffs since 2018. Alex Davidson of the Beer Institute shares how the tariffs—compounded by challenges from the Covid-19 pandemic, rising inflation, and supply chain issues—are putting a significant burden on the industry, which supports more than 2 million jobs.

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

A bill pending in Congress would require certain service providers, lawyers, accountants, and other tax professionals to act as “gatekeepers” for purposes of reporting suspicious financial transactions. So far, the response to the bill has been mixed. Here’s my summary of what you need to know.

Listen In

The IRS is seeking to prevent new, potentially abusive transactions from gaining traction with taxpayers. Early this year, the agency launched a group called the Joint Strategic Emerging Issues Team to identify areas with a high risk of noncompliance and determine how best to address these issues.

On this episode of Talking Tax, Bloomberg Tax senior reporter Naomi Jagoda speaks with Benjamin Swartz, senior adviser to the commissioner of the Small Business/Self-Employed Division, and Holly Porter, associate chief counsel for pass-throughs and special industries, about the goals of JSEIT, the makeup of the team, and the types of issues involved.

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.

Spotlight

Our Spotlight series highlights the careers and lives of tax professionals across the globe. This week’s Spotlight is on Arianna Campbell, a shareholder and consultant at Boomer Consulting Inc., a business management company for CPAs in Kansas City, Mo.

Career Moves

Sebastiaan Wijsman has joined Dentons as a partner in the tax practice in the Amsterdam office, the firm said.

Alan Gutierrez-Arana has joined Mazars as a principal in its cyber practice in New York, the firm announced.

Chamber Hrdlicka has added three attorneys to its international tax and tax controversy services in San Antonio, Texas, the law firm said.

Kevin Hengst has joined Pannell Kerr Forster of Texas PC as a new director of the audit team, the firm said in a statement.

Eduardo Arista has joined Holland & Knight LLP as a partner in the private wealth services team in Miami, the law firm announced.

William M. Doyle, Lawrence M. Kern, and Eric C. Nelson have joined Greenberg Traurig, LLP from Winston & Strawn LLP as shareholders in Chicago, the firm said in a statement.

Frazier & Deeter has hired Kandace Freeman as the diversity, equity, and inclusion program manager in Atlanta, the firm said.

Shail Shah has joined Greenberg Traurig as shareholder in the San Francisco office, 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.

Events

The National Association of Tax Professionals will be hosting workshops to help tax preparers get ready for a busy tax season in more than 70 locations throughout the country for in-person attendance. Virtual options are also available.

The National Association of Tax Professionals will be offering a series of tax forums throughout the country. The three in-person locations include Orlando (Sept. 19-20), Atlantic City (Sept. 29–30), and Las Vegas (Oct. 19–20).

If you’re hosting an industry-wide event, let us know. You can email your submission to TaxEvents@bloombergindustry.com for consideration.

Don’t Miss

Bloomberg Tax Insights is hosting its monthly virtual Lunch & Learn series with “What Tax Pros Need to Know About Retirement” on Sept. 21 from noon to 1 p.m. EDT.

We’ve recruited a top financial adviser who can help you prepare for your post-professional life. Matthew Grieb is a certified financial planner with Raymond James in the Washington, D.C., area. His practice focuses on sophisticated wealth management planning for business owners creating generational wealth, as well as for high-income specialty professions.

Quick Trivia Answer

Cho Bo-ah and Shin Dong-yeop attend the 29th Seoul Music Awards at Gocheok Sky Dome on Jan. 30, 2020 in Seoul, South Korea.

Photographer: Chung Sung-Jun via Getty Images

Jo Bo-ah received a presidential award as an exemplary taxpayer on March 3, 2022—the country’s annual Taxpayers’ Day. She will act as an honorary tax ambassador for the NTS.

Subscribe

Sign up for your free copy of our newsletter delivered to your inbox each week. Just head over to The Exchange and sign up using the green “Free Newsletter Signup” box at the top—or just go directly to the newsletter sign up page.

What Did You Think?

Your feedback and suggestions are important to us, so don’t hesitate to reach out on social or email me directly at kerb@bloombergindustry.com.

Spread the love

Leave a Reply

Your email address will not be published.