Tax Planning

Weekend Insights: Tax planning and not using a crystal ball

In the early minutes of the classic film “The Wizard of Oz,” Dorothy runs into Professor Marvel, whose car boasts, “Let him read your past – PRESENT and FUTURE in its crystal.” Dorothy, desperate for clarity, asks the professor a question. He pauses before offering, “I never do anything without first consulting my crystal.”

A crystal – or a crystal ball – is supposed to find answers by allowing its owner to see into the future. It sounds like a wonderful idea and I have to admit that, like Dorothy, there have been times when I wish I could see what’s coming to a crystal ball courtesy. That has never felt truer than in 2021: As tax professionals, we want to know what’s coming so that we can better serve our customers.

But maybe we don’t need a crystal ball. After all, Dorothy got the answers she wanted, not from the crystal, but from herself, after pondering the professor’s words.

Ray Bolger, Jack Haley, Judy Garland and Bert Lahr, all in costume, dance along the yellow brick street in an advertisement from “The Wizard of Oz” (1939).

Photo by Silver Screen Collection / Getty Images

While our ability to look into the future may be scarce, we can offer expert analysis to aid you on your way to tax planning-related answers in this week’s Insights Roundup.

Quick Numbers Trivia

How much did the crystal ball used in “The Wizard of Oz” sell at auction in 2011?
(Answer below.)

Our summary

One year from now, it can be difficult to stay on track with tax planning. From tax breaks to wealth planning, our tax experts have what you need:

A degree may not provide you with all of the knowledge you need to get practical advice. Tax advisors can be put in a position to offer their clients more than just tax advice. Bryan Kesler Outlines Seven Financial Planning Hacks Only the professionals know they can help your clients by asking money-related questions outside of taxes.

Earlier this year, many tax professionals wished that the finance department and IRS would have a heart and extend the filing deadlines. Luckily they did. WNS’s Krishnan Raghunathan in Tax Deadline Extension – A Boon for Finance Functions shows how an extension can benefit finance and accounting teams when they use the extra time to rethink their operating model.

The costume of the cowardly lion by the actor Bert Lahr from “The Wizard of Oz”, exhibited at Bonham in New York, 2014.

Photographer: Don Emmert / AFP via Getty Images

Are Courageous Tax Movements Required to Promote Development and Boost the Economy? Nest Seekers’ Erin Sykes writes about the return of the New York City tax break and how the program works.

Wondering what’s right down the street? 2021 is turning into a year of economic growth and recovery. Mimi Song from CrossBorder Solutions examines projections for tax policies in the US and internationally in planning for a post-pandemic economy: Outlook for multinational corporations and tax strategies.

Is the Property Tax on Erosion and Abuse (BEAT) designed not only to be dead, but to be truly truly dead? A cut could be on the agenda and replaced by “Stopping harmful inversions and ending low-tax developments” (SHIELD). In the US tax reform 2.0 – BEAT Down, SHIELD Up? – KPMG’s Danielle Rolfes, Jonathan Galin and Marcus Heyland are investigating the proposed provision and its prospects for entry into force.

When addressing a problem, it is always best to start at the beginning. The Biden government has started to participate in the OECD tax discussions with other countries. In the OECD tax negotiations, which offer an opportunity for a new approach, David Morse of the Coalition for a Prosperous American Education Fund sees a viable path for the first and a more understandable second pillar, albeit with deviations from the transfer pricing rules.

Bloomberg Tax’s Isabel Gottlieb also focused on the impact of the new US administration on global talks in the latest Talking Tax podcast episode.

When it comes to understanding tax policy, there may be no place like home. President Joe Biden recently made proposals for significant changes to tax law. In Strategy Spotlight: Preparing for New Tax Laws, Pam Lucina, Head of Trust & Advisory Practice for Northern Trust Wealth Management, sheds light on the areas that could be affected and how wealth planning strategies can be used.

After all, Dorothy didn’t find her way alone – she needed help along the way. This also applies to tax professionals. On the latest Taxgirl podcast, industry leader Kate Barton, EY’s global vice president of taxation, talks about mentors, sponsors, and the importance of being around good people for women in companies, especially in high-level positions.

Write for us

Authored by tax professionals, Bloomberg Tax Insights articles provide expert analysis of current tax practice and policy, tax trends and issues, and the practice and management of tax and accounting firms. If you have an interesting article to publish that has never been published, we’d love to hear about it. You can contact our Insights team by emailing TaxInsights@bloombergindustry.com.

Beyond taxes

Improving access to legal services for people with limited resources is not just a dream. Jason Solomon, executive director of the Stanford Center on the Legal Profession, and Noelle Smith, a third-year law student at Stanford, argue in a promising way to improve access to justice that it can do so by creating an equivalent of nurses in law can happen profession. Several states are considering this, they say, and the result will improve the functioning of the legal system.

Student writing contest

Think you have what it takes to write Bloomberg Tax Insights? We’re excited to have our first Bloomberg Tax Insights writing competition designed to highlight the best of student writing.

Happened this week

Everyone loves a great review, but what if the reviews aren’t that great? In a world where online reviews can be key to attracting or losing potential customers, understanding when and how to respond to negative reviews is important.

Gina F. Rubel, Esq., Founder and CEO of Furia Rubel Communications, Inc., will share everything you need to know about online reputation management in a virtual event on May 26th at 12:00 PM EST. You can listen here, no registration required.

Your answer to short numbers

The ball was sold for $ 126,500 at a Hollywood auction. All of the proceeds – after sales costs – were donated to charity.

Exclusive content for Bloomberg Tax subscribers

The Wizard of Oz slippers that Judy Garland wore in 1939 were exhibited in 2011 in Plaza Athenee in New York City.

Photographer: Astrid Stawiarz / Getty Images

From ruby ​​slippers to well-placed water buckets, it’s important to have the right tools to get the job done. Our interactive workflow tools make it easy. Each workflow tool takes you through a series of questions related to a transaction and guides you through key considerations / facts needed to make a decision. At each step, definitions, descriptions, and links to additional guidance and relevant source material are displayed to provide more detailed information on the question at hand. At the end of the workflow, links to related documents such as election declarations and forms are provided for easy access.
* Note: Your Bloomberg Tax login is required to read the interactive workflow tools.

More great tax content

This is a practitioner-authored weekend round-up from Bloomberg Tax Insights that includes expert analysis of current tax practice and policy issues. For a full archive of articles, see Jurisdiction, Daily Tax Report, Daily Tax Report: State, Daily Tax Report: International, Transfer Pricing Report, and General Ledger.

You can also follow Bloomberg Tax on Twitter, Facebook, and LinkedIn.

What did you think?

We hope you like the new format and look of the newsletter. We’d love to hear what you think. Here is our email: TaxInsights@bloombergindustry.com.

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