Tax Planning

Weekend Insights: Tax planning with no crystal ball Crystal

In the early minutes of the classic film “The Wizard of Oz”, Dorothy stumbles upon Professor Marvel, whose car brags, “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 enabling its owner to see into the future. It sounds like a wonderful idea and I have to admit that, like Dorothy, I have sometimes wished to be able to see what was in store with a crystal ball. That has never been more true than in 2021: As tax professionals, we want to know what is in store for us in order to better serve our clients.

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, as they dance along the yellow brick road in a promotional photo from “The Wizard of Oz”, 1939.

Photo by Silver Screen Collection / Getty Images

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

Quick Numbers Trivia

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

Our summary

In the middle of a turbulent year, it can be difficult to stay on track with tax planning. From tax breaks to wealth planning, our tax professionals have everything you need:

Studying may not give you all of the skills you need to move forward in terms of practical advice. Accountants may be able to offer more than just tax advice to their clients. Bryan Kesler outlines seven financial planning hacks only professionals know to help your clients with money-related questions outside of taxes.

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

The cowardly lion costume of the actor Bert Lahr from “The Wizard of Oz” can be seen in 2014 at Bonham’s in New York.

Photographer: Don Emmert / AFP via Getty Images

Are bold tax moves necessary to promote development and stimulate the economy? Nest Seekers’ Erin Sykes writes about The Return of the Tax Abatement in New York City and how the program works.

Wondering what’s just down the street? 2021 is turning into a year of economic growth and recovery. CrossBorder Solutions’ Mimi Song examines forecasting U.S. and international tax policies in Planning For Post-Pandemic Economy: Multinational Group Outlook and Tax Strategies.

Is the Base Erosion and Anti-Abuse Tax (BEAT) designed not only to be dead, but really, truly dead? It could be on the agenda to cut it and replace it with “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 examining the proposed provision and its prospects for implementation.

When addressing a problem, it is always best to start at the beginning. The Biden government has started to get involved with other countries in the tax discussions of the OECD. In OECD Tax Negotiation Offer Chance for New Approach, David Morse of the Coalition for a Prosperous America Education Fund sees a viable path for the first pillar and a more understandable pillar two, albeit with a deviation 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 recent Talking Tax podcast episode.

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

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

Write for us

Bloomberg Tax Insights articles are written by tax professionals and provide expert analysis of the latest tax practice and policy, tax trends and issues, and the practice and management of tax and accounting firms. If you have an interesting, unpublished article to publish, we’d love to hear about it. You can contact our Insights team by emailing TaxInsights@bloombergindustry.com.

Beyond taxes

Access to legal services for people with modest means 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 Path to Enhance Access to Justice that this can be done by having the equivalent of legal nurses creates a job. Several states are considering this, they say, and the result will improve the functioning of the legal system.

Student writing competition

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 in 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 winning 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 teach everything there is 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 quick number answer

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

Exclusive content for Bloomberg Tax subscribers

“The Wizard of Oz” slippers worn by Judy Garland in 1939 on the Plaza Athenee in New York City in 2011.

Photographer: Astrid Stawiarz / Getty Images

From ruby ​​red slippers to a well-placed water bucket, having the right tools to get the job done is essential. Our interactive workflow tools make it easy for you. Each workflow tool takes you through a series of questions about a transaction and walks you through the key considerations / facts needed to make a decision. At each step, definitions, descriptions, and links to additional instructions and relevant source material are displayed that provide more details 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 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 Daily Tax Report, Daily Tax Report: State, Daily Tax Report: International, Transfer Pricing Report, and Financial Accounting.

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

What did you think?

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

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