Taxgirl

Filing taxes can be a complex process involving different rules and stipulations for American citizens living outside of the United States. What do Americans citizens living abroad need to know about US taxes? On today's episode of the Taxgirl podcast, Kelly is joined by Nathalie Goldstein to talk about expat taxes for Americans living outside the United States. Nathalie is the founder and CEO of MyExpatTaxes. As an IRS Enrolled Agent, she specializes in US expat taxes, helping the 9 million Americans like herself living abroad required to file US taxes based on citizenship-based taxation. Listen to Kelly and Nathalie discuss the expat tax journey:Nathalie speaks about her own experience becoming an expat and learning how to process expat taxes. What exactly do Americans living abroad need to know? How are taxes different for expats? Kelly and Nathalie talk about foreign accounts, claiming Expat Tax benefits, and avoiding becoming double-taxed on foreign income. What do expats need to know about other tax returns, F bar requirements, and other disclosures? What tax complexities are involved with forming a business abroad and incorporating it? What penalties can be associated with these complex tax filings? Kelly and Nathalie share their thoughts on controversy and compliance issues for expats and international clients. Additionally, they provide insights and advice to those influenced by fear-mongering regarding tax compliance. Nathalie discusses the IRS services for international taxpayers, including complications with processing mailed tax returns and accessing their online accounts. To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links mentioned:Kelly's Website:http://www.taxgirl.com/ ( Taxgirl) MyExpatTaxes Website: https://www.myexpattaxes.com/ (MyExpatTaxes) MyExpatTaxes Instagram: https://www.instagram.com/myexpattaxes/ (@MyExpatTaxes) MyExpatTaxes TikTok: https://www.tiktok.com/@myexpattaxes?is_from_webapp=1&sender_device=pc (MyExpatTaxes) MyExpatTaxes Youtube: https://www.youtube.com/channel/UCE16g75aLMmUJZjv9MERfAQ (MyExpatTaxes) MyExpatTaxes Twitter: https://twitter.com/myexpattaxes (@MyExpatTaxes) MyExpatTaxes Linkedin: https://at.linkedin.com/company/my-expat-taxes?trk=public_profile_topcard-current-company (MyExpatTaxes)

Supporting gender equality within the global tax accounting and legal industries is essential. This month, female representation takes on even more meaning, as it is Women's History Month.  What is the importance of gender equality within the tax profession? On today's episode of the Taxgirl podcast, Kelly is joined by Kate Barton to talk about gender equality in the tax profession. Kate is EY Global Vice Chair - Tax, where she oversees all aspects of EY's tax strategy and operations, people development, client relations, quality control, risk management, thought leadership, knowledge, and learning. She also leads the EY tax executive committee. Listen to Kelly and Kate discuss gender equality:What has changed in terms of gender equality, and how should women continue to move forward in the tax profession? What can women in leadership positions do to encourage and support women who are on their way up? Kelly and Kate share their thoughts on mentorship between women in the tax profession. What are some obstacles that Kate sees most for women in the tax profession on the way to achievement? Has the change in the workplace to remote and hybrid structures generally been positive or negative for women?  Kate shares her thoughts on upskilling and education for women in the tax profession. Kelly and Kate speak on increasing diversity and gender equality in the tax profession. To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links mentioned:Kelly's Website:http://www.taxgirl.com/ ( Taxgirl) Kate's Twitter: https://twitter.com/katebartoney (@KateBartonEY)

Recently, Americans have experienced rising prices. But when it comes to economic inflation, how does this affect the taxes you are expected to pay? How could the impact of inflation affect your tax bill? On today's episode of the Taxgirl podcast, Kelly is joined by Tim Speiss to talk about the impact of inflation and rising prices on taxes in 2022. Tim is the CPA and partner of EisnerAmper LLC's wealth advisory group. He has over 30 years of experience providing comprehensive tax planning and related investment, compensation, and financial planning services. Listen to Kelly and Tim discuss taxes and inflation:For taxpayers who may be in the position of needing to write checks to the IRS, what information and advice should they know regarding the effects of inflation on their taxes? Tim provides holistic advice for effective financial and tax planning, like utilizing advisors and implementing goals. Kelly and Tim speak on the value of taxpayers seeing professional specialists and personal wealth advisors who handle financial portfolios. When using a holistic approach to developing long-term plans, what kinds of documentation should taxpayers look at? What should taxpayers understand about charitable giving? With some people struggling with new economic burdens brought on by inflation, how can tax professionals help? How does charitable planning relate to retirement when people try to use their retirement funds or retirement planning to accomplish a charitable goal? Tim and Kelly discuss retirement changes, and Tim emphasizes the importance of starting a 401k plan early in life. Homes and life insurance are significant sources of income or wealth-building investments. What components of these should taxpayers consider during tax season? Tim provides his thoughts on whether the tax filing date should be changed. To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links mentioned:Kelly's Website:http://www.taxgirl.com/ ( Taxgirl) Tim's LinkedIn: https://www.linkedin.com/in/timothy-p-speiss-064a5615 (Timothy P. Speiss)

Over the past few years, the IRS has increased its compliance and enforcement efforts focused on payment transactions between US and foreign persons. However, these new information reporting requirements for compliance can be confusing and intimidating for taxpayers. What changes has the IRS made to tax information reporting requirements? On today's episode of the Taxgirl podcast, Kelly is joined by Tara Ferris to talk about the new requirements for tax compliance. Tara is a Principal in the Financial Services Office of Ernst & Young LLP. In this role, Tara advises multinational financial institutions and asset managers on customer tax reporting and withholding. In addition, she focuses on process and control improvements to create efficiencies and reduce risk. Before joining Ernst & Young LLP, Tara served as Senior Counsel and worked on matters relating to FATCA, non-resident alien withholding and reporting, and international aspects of domestic information reporting. Listen to Kelly and Tara discuss tax reporting requirements:There's more emphasis now on reporting requirements, either for US payments to foreign persons or foreign income received by US persons. How has the expansion of information reporting impacted the professional tax practice?  How should tax professionals communicate to their clients and financial institutions that they work with which forums are important, and when they need to issue them? When working with financial institutions with clients who don't wish to be reported, how should tax professionals convince them that they need to give up the data, especially in countries where they may have built their entire system around the idea that it's secret? What should a taxpayer do if they think they're supposed to get a forum and didn't, or that form doesn't come through? Is that something that a taxpayer should have a conversation about with their financial institution or tax professional? Many clients struggle with the idea that they could have a reporting requirement that they aren't aware of or have reporting requirements they didn't even know existed. As a tax professional, how should one advise clients to figure out what those are? Kelly and Tara discuss reporting and the burden on the taxpayer to make sure that that information is correct, keep records, and balance the way they use their tax data. With the recent changes in tax reporting requirements, will taxpayers need to be reeducated on what is taxable and what is not? Are we suffering from an overreliance on tax forms to navigate this new territory? Now that more mainstream financial institutions adopt crypto in various forms, could this make it easier or harder for the IRS to enforce crypto reporting? Tara and Kelly provide their opinions about the long road ahead for crypto reporting and tax preparation. Tara speaks on her predictions of the tax reporting space in the upcoming years. To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links mentioned:Kelly's Website:http://www.taxgirl.com/ ( Taxgirl) Tara's LinkedIn: https://www.linkedin.com/in/tara-ferris-238670b (Tara Ferris)  EY Tax Operations: https://www.ey.com/en_us/financial-services/customer-tax-operations-reporting-services (Customer Tax Operations and Reporting Services)

The world seems to be finally recovering as we come out of the pandemic. The global economy has rebounded and the global GDP is projected to increase. But will this trend continue? What do CEOs think about the economy and next steps? On today's episode of the Taxgirl podcast, Kelly is joined by Kathryn Kaminsky to talk about global economic trends and their effects on tax professionals. Kathryn is Vice Chair - Trust Solutions Co-Leader of PwC. In this role, she oversees the largest Trust platform in the world, bringing together the firm's combined Audit, ESG, Digital Assurance and Tax Reporting capabilities to best help clients as they seek to build trust with their stakeholders. As co-leader, Kathryn is responsible for the quality of service, excellence in the work performed by over 21,000 partners and staff, developing diverse teams and driving innovation. Listen to Kelly and Kathryn discuss the state of the economy and the challenges ahead:PwC recently asked 4,446 CEOs from 89 countries and territories about continued economic resilience. Kelly and Kathryn speak about the survey results and how they could affect the tax profession.  Kelly and Kathryn discuss the optimism displayed in the survey and the reasons many respondents may have for maintaining optimism regarding this topic. What challenges may leaders and CEOs of larger companies face in the current economic state, and how are they making adjustments to combat them? Kathryn shares her insight about the labor shortage, the Great Resignation, and how companies have been navigating these workforce management trends. What are the common concerns of CFOs or CEOs when it comes to US tax policy and the implications of the OECD?  Since the pandemic began, many technological innovations have changed how we do business and characterize industries. What future effects can we expect from these changes on business categorization and economic growth? How invested are CEOs and leaders of bigger corporations with the tax planning process? The PwC survey featured the topic of succession. How important is succession planning for companies, particularly larger ones, and multinationals? Kathryn provides her most important advice for tax and accounting and legal professionals related to the survey and our current economic trajectory. To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links mentioned:Kelly's Website: http://www.taxgirl.com/ (Taxgirl) Kathryn's LinkedIn: https://www.linkedin.com/in/kathryn-kaminsky-b981b721/ (Kathryn Kaminsky)  Kathryn's Twitter: https://twitter.com/Kaminsky001 (@Kaminsky001)  PwC: https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.pwc.com%2Fus%2Fen%2Fcontacts%2Fk%2Fkathryn-kaminsky.html&data=04%7C01%7Ckerb%40bloombergindustry.com%7C6d0d4abc432442a54a6c08d9e5dc175c%7C97be21fdc6014b169920f5accc69da65%7C0%7C0%7C637793555742238606%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=w5WfivfdQNKoXE2X09F5BB9DLci2V0hobC6PCxrsKAs%3D&reserved=0 (Kathryn Kaminsky) https://www.pwc.com/gx/en/ceo-agenda/ceosurvey/2022.html (PwC 25th Annual Global CEO survey)

Over the past year, there have been significant changes to the child tax credit. So what exactly do taxpayers need to know about the differences from last year to this year, and how will those changes affect them? What do people need to know about changes to the Child Tax Credit? On today's episode of the Taxgirl podcast, Kelly is joined by David Newville and Gabriel Zucker to talk about the mechanics of these tax changes. David Newville is Senior Program Director for Tax Benefits at Code for America. David has spent the last decade in Washington building financial security for low- and moderate-income people, including during a stint as a Senior Policy Advisor at the Treasury Department during the Obama administration. Gabriel Zucker is the Associate Policy Director for Tax Benefits at Code for America. Zucker has nearly a decade of experience in the evaluation, design, and implementation of progressive policy and has previously conducted research and advocacy on veteran homelessness programs and paid family leave. Listen to Kelly, David, and Gabriel discuss the Child Tax Credit:What is the newest expansion to the Child Tax Credit (CTC), and what do taxpayers need to know? Kelly, David, and Gabriel discuss the role of advance payments in relation to the CTC expansion. The CTC is similar to and different from the pandemic stimulus payments, causing confusion for taxpayers. How do they differ? What kinds of tools are available to families to ensure that they receive the credit they need? David and Gabriel talk about this and how they have been involved in the process. Many American taxpayers are reluctant to become involved with the IRS. How are IRS officials working to overcome the challenge of people's fear about turning over personal information? Kelly and her guests discuss possible future steps to provide economic support for taxpayers. What tools and options are in development for simplifying the tax filing process?  Is there any other important information that taxpayers should know about the CTC's changes or tax filing trends?  More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links mentioned:Kelly's Website –http://www.taxgirl.com/ ( Taxgirl) David's Twitter –http://www.taxgirl.com/ ( )https://twitter.com/dlnewville (@dlnewville) Gabriel's Twitter –http://www.taxgirl.com/ ( )https://twitter.com/ZuckerGabriel (@ZuckerGabriel) David's Company Page – https://codeforamerica.org/people/david-newville/ (David Newville) Gabriel's Company Page – https://codeforamerica.org/people/gabriel-zucker/ (Gabriel Zucker)

Education has become less affordable in recent years leading many to take out student loans. Unfortunately, new borrowers often find it challenging to navigate the complex processes surrounding student loans and payments. What information do borrowers need to make wise student loan decisions? On today's episode of the Taxgirl podcast, Kelly is joined by Bobby Matson to talk about student loan debt. Bobby is the CEO of Payitoff, which provides technology solutions for producing positive financial outcomes for student loan borrowers. It was founded with the goals of streamlining the complicated student loan system and saving borrowers money. Listen to Kelly and Bobby discuss student loans:How can technology solutions like apps and platforms help borrowers with the student loan borrowing and payment processes? Kelly speaks on her own student loan debt experiences and the confusion borrows face with complex processes like repayment rules, loan levels, and payment options. How can the topic of student loans be broken down in a way that is understandable to the people who have to pay them? Kelly and Bobby speak about the interest deductions that borrowers can get on their taxes for having student loans and the qualifications involved. Why is it important, and why can it be helpful to have conversations and educate students about student loan options? There are few options available that provide simple assistance with loan repayment, as the system is complex. Bobby explains why software offered by his company can help connect people with better repayment methods. Many people must choose which debts to repay before others when it comes to repayment. How does the emotional component of debt impact people's repayment decisions? How does the stigma around borrowing affect the way people discuss and treat and discuss their debt? Kelly and Bobby discuss student loan forgiveness and the Department of Education's targeted relief programs for loan borrowers. How could access to information about loans and payment programs help people make better economic decisions? More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links mentioned:Kelly's Website –http://www.taxgirl.com/ ( Taxgirl) Bobby's Twitter –http://www.taxgirl.com/ ( )https://twitter.com/bomatson (@bomatson) Payitoff Twitter –http://www.taxgirl.com/ ( )https://twitter.com/payitoffapp (@payitoffapp) Payitoff LinkedIn –http://www.taxgirl.com/ ( )https://www.linkedin.com/company/payitoff?trk=public_profile_topcard-current-company (LinkedIn)

The pandemic has brought on many changes in the last few years, and these changes have impacted the tax season in 2022. What challenges and updates should people be aware of this tax season? On today's episode of the Taxgirl podcast, Kelly is joined by Amber Gray-Fenner to talk about challenges impacting taxpayers and tax professionals this filing season. Amber is an Enrolled Agent and owner of Tax Therapy, LLC, in Albuquerque, New Mexico. Amber considers herself a tax "general practitioner" who prepares returns for individuals and (really) small businesses and represents individuals before the IRS and, occasionally, the U.S. Tax Court (as a non-attorney practitioner admitted to the Tax Court bar). Amber is also a tax writer whose passion is translating "taxspeak" into English for taxpayers and tax practitioners. She writes to dispel myths with facts and to explain “the fine print” behind seemingly simple tax concepts. Amber is a contributing writer at Forbes.com covering individual tax issues and IRS developments, a contributing writer for ThinkOutsidetheTaxBox.com, and one of the authors of The Most Common Tax Mistakes Made by Small Businesses (Lily Tran, author/editor). Listen to Kelly and Amber discuss this tax season's challenges:What does Amber think are the challenges people will face this year regarding tax struggles or filing difficulties? Kelly and Amber discuss the ways that the IRS's slow and often inefficient processes may cause challenges for taxpayers and professionals this tax season. How would refund check delays impact the lives of people who rely on tax refunds? Would the IRS be to blame for these impacts? Does taxpayers' time to file their returns influence how soon they will receive their refunds? How can taxpayers find a balance between filing early to avoid risks like ID theft vs. waiting patiently to file a correct return? In what ways are taxpayers at risk of being taken advantage of? Amber and Kelly discuss how the IRS is under-resourced and how this could have long-term consequences to the tax process and the taxpayer's trust in the system. What can taxpayers and tax professionals do this season to make their lives easier? Amber discusses some of the options available to taxpayers to aid them in the filing process this season. How can taxpayers best prepare and organize their information when filing with a tax professional? In what ways can tax professionals be better at determining whether a relationship with a potential client would be a good fit? How should the price that tax professionals charge factor into this practice? More about Kelly:Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links:Kelly's Website –http://www.taxgirl.com/ ( Taxgirl) Amber's Website – https://taxtherapy505.com/ (Tax Therapy 505) Amber's Twitter – https://twitter.com/taxtherapist505 (@taxtherapist505) Amber's book - https://www.amazon.com/dp/B09RTMQSP3/ref=cm_sw_r_cp_api_glt_2GAB5XE9HS6PJQVMHP1J (The Most Common Tax Mistakes Made by Small Businesses)

With tax season starting, many taxpayers are considering the best ways to file their returns and prepare their tax documents. But, with so many methods and room for confusion, what knowledge should taxpayers have to make the process go smoothly? What information should taxpayers know to prepare themselves for this tax season?On today's episode of the Taxgirl podcast, Kelly is joined by Mark Steber to talk about everything that taxpayers should know and expect this tax season. Mark is a Senior Vice President and Chief Tax Information Officer at Jackson Hewitt Tax Service. Listen to Kelly and Mark discuss the upcoming tax season:Which tax payment processes are confusing and intimidating to DIY taxpayers this year? The IRS is not set up to help Americans get the most out of their tax experience regarding things like tax preparation and refunds. Mark shares his opinion on why this is the case. Kelly and Mark discuss the challenges facing nonfilers. Mark talks about why he encourages all taxpayers to ask their professionals upfront about the cost of their tax preparation services. How should tax practitioners promote their services and what they're offering? Big branded tax professional services are not always the best options for taxpayers to form long-lasting relationships with their tax professionals. Kelly and Mark address this concern that people have about these companies and their tax professionals. What should taxpayers be prepared for when working with a tax professional? What questions should they be asking to get the most out of their experience? Mark and Kelly discuss guarantees in the tax business, audit relief for audit protection, and what they think should be the role of a tax professional in those situations where taxpayers are looking for these guarantees. Last year stimulus checks presented a significant issue for taxpayers trying to file their returns. Kelly asks Mark what he thinks will be problematic for taxpayers this year. Should the tax filing season deadline be changed? Mark explains why he doesn't believe the deadline should be adjusted. More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links:Kelly's Website –http://www.taxgirl.com/ ( Taxgirl) Mark's Website – https://www.jacksonhewitt.com/about-jackson-hewitt/editorial-policy/mark-steber/ (Jackson Hewitt) Mark's Twitter – https://twitter.com/marksteber?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor (@marksteber)

It comes as no surprise that recent events have had significant effects on the economy and businesses as a result. But with inflation causing soaring prices, many tax practitioners have experienced significant impacts on their professions. What challenges are tax practitioners experiencing in 2022, and how can they successfully navigate the effects on their professions?On today's episode of the Taxgirl podcast, Kelly is joined by Tony Novak to talk about the impact of inflation on the tax practitioner profession. Tony is a serial small business entrepreneur in the Philadelphia area. He founded MedSave, a first-generation insurance exchange, and Freedom Benefits™, a benefits firm for contractor's business. He is a graduate of Delaware Valley University (BS, 1982), Temple University (MBA in Finance and Accounting, 1985), and Villanova Law School (MT, Compensation Planning, 1995). He primarily served the construction industry, including a term on the board of the National Association of the Remodeling Industry. Now his passion is promoting rural business redevelopment in South Jersey, promoting tax-free small business investments in restorative aquaculture, sustainable fishing, and waterfront recreation. He operates a sole practitioner CPA firm steps from the beach at Money Island, New Jersey that serves other entrepreneurs and investors. Listen to Kelly and Tony discuss impacts on the tax profession in 2022:In the competitive world of tax practices, it can be hard to survive as a small businesses accounting firm. Kelly asks Tony for his opinion on how these professionals can adjust their practices to stay in business. How can tax practitioners identify the best billable rates for their service in a society where asking others is inappropriate? Kelly and Tony discuss the stress that individuals in the tax profession experience and its effect on their health, personal lives, and career decisions. Many people view hiring a tax practitioner as a discretionary cost rather than a necessary one and feel more comfortable with price shopping and deduction shopping. Kelly discusses this and its relation to the tax profession's stress on practitioners, especially those handling small businesses. Tony and Kelly speak on the importance of managing expectations and communicating effectively with clients. They touch on the innovative ways that technology is being used in recent years to benefit small businesses, practitioners, and their communication. What is the best method for making billing adjustments in the tax profession? How do billing methods relate to this regarding hourly rates and flat fees? In our increasingly cost-conscious environment, how can tax professionals navigate the decision to increase their rates and the effect of their rates on the quality of their services? Often, people don't consider the additional value that employing tax professionals can provide to them in the form of ensuring tax compliance and planning for their futures. How has this influenced the livelihood of tax professionals? Kelly and Tony discuss pivoting and how making adjustments to one's practice can be beneficial in an economy that is constantly changing. More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here)....

The Taxgirl Podcast discusses tax news, tax info, and tax policy. With so many taxation-related rules, facts, and updates, it's easy to be left with questions about tax processes. Luckily, the Taxgirl mailbag allows readers and listeners to submit their tax questions for Kelly to address.  What questions do listeners want to ask the Taxgirl?Can people make money "under the table" that is not reported to the IRS or recorded as a form of employment? Is this wrong, and what are the repercussions of choosing not to report this income? How do Social Security taxes, Medicare taxes, and income reporting work for freelancers or self-employed people?  What are the disadvantages to "working under the table" regarding benefits, retirement contributions, employment records, and payment conflicts? How are annual loss limits applied to losses and gains in the stock market? Are there annual losses that you can carry forward to later years after you've exhausted your capital gains? If you receive money as gifts, do you need to report the money to the IRS? Is there any scenario where this money could be excluded? Can people receive money gifts over $15k in multiple payments so that it is not taxed, or would this be considered structuring payments? What tax issues can accompany actions taken with the intent to avoid tax payments? How are monetary gifts taxed? How often does gift taxing affect middle-class taxpayers? How do reporting requirements affect cash deposits into bank accounts? If someone were to make a deposit of over $10,000, would the bank report it, and what would happen? Why might someone be denied a tax refund advance loan? If someone is turned down, can they reapply elsewhere? Can social media influencers/creators write off their college tuition as a deductible expense related to their business? What qualifiers make a business expense deductible? More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links:Kelly's Website –http://www.taxgirl.com/ ( Taxgirl)

The Organization for Economic Cooperation and Development (OECD) recently released details and proposed legislation on its global minimum tax plan. However, questions still linger regarding the details of the plan and the practicality of its proposed timeline. What future developments could we expect to occur as a result of the OECD global minimum tax deal?On today's episode of the Taxgirl podcast, Kelly is joined by George Salis to talk about the OECD's proposed global minimum tax plan. George is the principal economist and tax policy advisor of Vertex Inc. George has over 25 years of experience in international trade and taxation compliance, tax planning and controversy, fiscal regulation and tax economics consulting. Listen to Kelly and George discuss the OECD's global minimum tax plan:Kelly and George discuss the reasons the global minimum tax plan was created, and how the OECD's plans for global minimum taxes have changed over the years. The OECD's proposed legislation would make changes to the way many other nations have previously been implementing their minimum tax rates. Would the proposed plan's frameworks be inclusive to these nations that are directly affected by this deal? By now most nations have signed on with the plan, so what does George believe is the next step? George provides his input, and mentions the ways COVID-19 could impact factors relating to the proposed legislation. What are the differences in economic challenges and obstacles affecting the United States as compared to other countries that will be influenced by this tax plan? Kelly and George discuss how these countries may choose to move forward, or whether they believe these countries would look to the US as an example for guidance. George believes that certain critical contingencies that have to have to be set in place for a multinational tax convention to take place, and explains how each of them would relate to this process. How would this tax agreement influence the business world with regards to economic competition? Does George believe that this change would be artificially increasing economic competition, or decreasing it, and if so how? There are two pillars to the agreement, and a lot of media attention has been placed on pillar two, and its impact on companies in and outside the US. George discusses his opinions on this, how these pillars would be addressed, and how time may influence their impact. Kelly and George share their thoughts about the proposed agreement with its regards to the imposition of digital service taxes on US companies. What would George tell tax practitioners and individuals to look out for next, as important future developments that may arise regarding this tax plan? More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here). Links:Kelly's Website –http://www.taxgirl.com/ ( Taxgirl) George Salis – https://www.linkedin.com/in/george-l-salis-2041a213/ (LinkedIn) Vertex –https://www.vertexinc.com/ ( Website)

In the world of taxes, change is to be expected. This is especially true when it comes to sales tax. Since the pandemic, there have been many changes to laws and regulations, and the rules regarding sales taxes are no exception.  What significant sales tax changes have occurred due to COVID-19, and how are business owners and tax practitioners supposed to keep up with all of these ongoing developments?On today's episode of the Taxgirl podcast, Kelly is joined by Liz Armbruster to talk about the changes we have experienced since the start of the COVID-19 pandemic and how we can prepare for continued developments. Liz oversees global compliance operations at Avalara. With more than 20 years of leadership experience in various technology sectors, including software, media, and services, Liz is known for her strong track record of innovative problem solving, process optimization, and ability to deliver automation for efficiency and scale. Listen to Kelly and Liz discuss the impact that COVID-19 has had on sales tax changes and what we can expect in the future:What kind of impact does Liz see on taxes since the onset of the COVID-19 pandemic? Does she have any sense of how long we'll be dealing with some of these changes? How are Government agencies reacting or being proactive to the tax changes brought on by COVID-19? How could changing tax laws affect businesses currently exercising remote or hybrid work structures? Should companies be considering the potential of creating a nexus in another state due to their remote work policies? Liz explains what business owners should be paying attention to, especially when selling out of state, to ensure that they fulfill their obligations as sellers and comply with tax laws. An unexpected development from the pandemic was that some states saw a surplus in revenue. What trends could we see from these states as a result of this development, and how could this affect their collections process? Liz discusses her predictions for changes on the horizon due to these surpluses and what this could mean for businesses in states that are more reliant on sales tax. The value-added tax (VAT) changes in Europe have been in the news lately, and the implementation of real-time reporting has been increasingly popular. Does Liz think this is coming to the U.S.? If so, is it a good thing, and what should people be looking out for? The U.S. likes to think of itself as the leader in technology and other sectors, but when it comes to technology for taxes, we seem to be lagging behind other countries. What are some examples that Liz sees of other countries with advances or differences in tax technology that we're not yet experiencing in the U.S.? Are there any upcoming trends that we should be aware of? Would increased reporting requirements help mitigate unlawful tax practices in the U.S.? Would the increased transparency from real-time reporting change how companies do business in the U.S.? All of these moving parts and changes in tax practices can be overwhelming for business owners and tax practitioners. So in 2022, what should people be focusing on? What is the one thing Liz would counsel people to be aware of in the upcoming year? More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening...

While many may have complained about long call wait times and difficulty seeking IRS help in the past, the pandemic has exacerbated service problems such as these for the federal agency. As a result, today, it takes longer for claims to be addressed, and for taxpayers and practitioners alike, the process of reaching an IRS service representative seems nearly impossible. Who is to blame for the IRS's service issues, and what can be done to resolve them?On today's episode of the Taxgirl podcast, Kelly is joined by Bill Smith to talk about the IRS's difficulties that have emerged since the pandemic and what we can expect in the future. Bill is the Managing Director of the CBIZ MHM's National Tax Office in Washington DC. He has more than 40 years of experience in both the public and private sectors. In his current role, he consults nationally on a broad range of tax services, including foreign and domestic transactional tax planning for corporations, partnerships, LLCs, and individuals. Listen to Kelly and Bill discuss expectations for IRS processes returning to “normal” after the onset of COVID-19:What are Bill's thoughts on the IRS's current operating procedures for addressing taxpayer questions and concerns? What changes has he noticed since the onset of COVID-19? Are taxpayers aware of the modern-day challenges and delays involved in communicating with IRS representatives today, or are tax practitioners more alert to the difference in practices between now and pre-pandemic? How does this affect the relationships between tax practitioners and their clients? Bill speaks on what he describes as the" ripple effects" of the IRS's poor operating status. Taxpayers and tax practitioners can't get the IRS to respond to them promptly, and the IRS's use of only paper requests makes it easy for things to get lost or confused. These issues can affect not only taxpayers but their businesses, their relationships with professionals, the practices of tax professionals, and so on.  How may the Taxpayer Advocate Service's office's recent announcement about not accepting certain cases impact businesses and citizens who would not receive their refunds on time? Bill believes that the IRS faced such significant hardships due to their adjustment to remote working. How was their situation different from any other company's, and to such a great extent? In what ways did the stimulus payments affect the IRS processes and contribute to their slow processing and production difficulties?  Kelly and Bill discuss the IRS's technology as partially to blame for their operational issues. How could their technology be improved to resolve some of these problems? Could the controversy over the IRS's funding be contributing to its technology and operational issues?  How would the proposed amendment to the Build Back Better Act affect the IRS's processes? If the Act's amendment gets passed, the responsibility will fall on the IRS to explain and implement it. Could this cause adverse effects, considering their current operational status?  It is easier for the IRS to handle "lower hanging fruit" items such as smaller business audits rather than going after the more sophisticated tax issues. How would an amendment that caps the salary of the people who can be audited change this trend? Would the amendment impact the IRS's income, and if so, what would that mean for their future? What would Bill consider priorities, or areas of importance to taxpayers, if he were in charge of allocating additional funding to the IRS? Bill explains what areas of the IRS he believes should receive funding in order to restore normalcy to its processes. More about Kelly:Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into...

In response to the Panama Papers scandal, the EU agreed to regulations mandating the publication of beneficial ownership registries. It should follow, then, that the more information is accessed about individuals and corporate identities, the easier it is for financial and related entities to assist with legitimate businesses.   Daniel Wager argues that increased transparency would help improve trust in financial services; something that is critical to an industry which relies on public confidence to operate.  On today's episode of the Taxgirl podcast, Kelly is joined by Daniel Wager to chat about fighting financial crime, increasing transparency, and ownership registries. Daniel is the Vice President of Financial Crime Compliance at LexisNexis Risk Solutions. He has extensive experience in developing and running programs designed to prevent, detect and report money laundering, sanctions violations, arms proliferation and other crimes. In his current position, he assists regulated and non-regulated entities in avoiding legal, regulatory and reputational risk, while protecting the global financial system from illicit fund flows. Listen to Kelly and Daniel talk about increased financial transparency:What led up to the “clamor” for increased transparency in the wake of the Panama Papers, and how do they differ from the similarly notorious Pandora Papers? The average taxpayer can be understandably confused about where the line is drawn when it comes to illicit financial activity. Kelly says it's easy for some to conflate certain activity with wrongdoing, especially among politicians and wealthy individuals with offshore accounts. How much transparency does Daniel think is healthy or necessary, and should the rules be universal for all taxpayers? From corporations to individuals, Daniel breaks down his vision piece by piece. Does Daniel think financial transparency is most effective with widespread global reach, or can it still be impactful on an a la carte basis?  What does Daniel say to folks who are fearful about the tax system in the US being unsafe or at risk of exposing sensitive information? Does he believe it's a protected and private system? The purpose of these registries is not necessarily to “ferret out” the wrongdoers, but to make compliance and protection more streamlined and accessible for the good guys. Daniel describes this as “reducing friction.” How do you decide whether an entity is “good” or “bad” in the world of financial compliance? What are the rules, where are the lines? What kind of due diligence does Daniel go through during an investigation? It's widely assumed that these registries are meant to catch and prevent purely financial crimes, but financial crimes spread and infect many other aspects of society as well. How does Daniel's work intersect the IRS and the justice system? In Daniel's words, “Financial crime is not just one thing.” As we move forward in a world of increased financial transparency, what obstacles does Daniel anticipate and what advice does he offer to advisers and individuals? The rollout of US registries will take years, but the windup and tension has already begun. More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click...

We all think we understand sin taxes, but do we really? Sin taxes are typically excise taxes that target behaviors that we want to discourage. Common examples include taxes on booze, sugar, and cigarettes.   Do we legalize certain activities and substances just so we can tax them? What's the intention behind sin taxes, and are they really working as intended? On today's episode of the Taxgirl podcast, Kelly is joined by Thomas Shohfi to chat about the nuances of sin taxes. Thomas is an assistant professor in the Lally School of Management at Rensselaer Polytechnic Institute. He recently conducted a study on sin taxes with some surprising results.  Listen to Kelly and Thomas talk about the consequences of sin taxes:What are the details of Thomas's research on sin taxes, and what were some of the interesting highlights that came from the study? The study focuses on New York City taxi drivers, and under which circumstances they add certain rates to their fares.  When it comes to cigarettes, how might the difference in taxation on a single pack vary from state to state, and how can that alter a smoker's behavior? What are the governmental implications and social consequences of this particular sin tax? Thomas speculates that there are many unintended consequences and “third party effects” that stem from sin taxes, and that much more research into the subject is needed. For addiction-related issues in particular, such as gambling and cigarettes, there are many potential disruptions and unseen consequences that may come from long term implementation of sin taxes. Does making the cost of gambling higher actually help a gambling addict to get help? Does increasing the cost of a pack of cigarettes really dissuade a lifelong smoker?  What about marijuana? Many sin taxes are placed on substances and activities that are currently legal today, that didn't used to be (such as booze). We legalize it, we tax it. But what is the right amount of taxation? Is it a paradox to legalize a substance, only to slap on a tax meant to discourage the use of that substance?  Governments can easily put together calculated projections for taxes based on sales of particular goods. But long term research and statistics on sin taxes can become far more complex. How does Thomas suggest researchers pitch these studies, and how might they be organized or funded in the future? How might the existence of sin taxes affect people's opinions on the activities and substances themselves? What do people think about people who partake in those behaviors, what do people think about a government that classifies certain things as taxable “sins,” and how do they draw ideological lines in the political sands?  What behaviors does Thomas think may be taxed in the future? Kelly and Thomas discuss sex work, on OnlyFans in particular, and what a sin tax on the platform might look like.  More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her onhttp://www.twitter.com/taxgirl ( Twitter),https://www.facebook.com/taxgirl ( Facebook),https://www.instagram.com/therealtaxgirl ( Instagram), andhttps://www.linkedin.com/in/taxgirl/ ( Linkedin). To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app,https://www.taxgirl.com/taxgirl-podcast/podcast-subscription/ ( click here).   Links:Kelly's Website – http://www.taxgirl.com/ (Taxgirl) Thomas' Website – http://tom.shohfi.com/ (Shohfi.com) Thomas' Papers – https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1618214 (Papers) Thomas' Sin Tax Piece –...

Almost 1.5 million fewer moms of school age children were actively working in March 2021 compared to February 2020. The pandemic has certainly taken its toll on working parents.  Kelly loves all things tax. She's an attorney, and she's a mom. She strongly believes it's important for her kids to see her working, and for them to know that their mom loves what she does. Kelly says that being a working parent has made her a better tax attorney: from planning, keeping organized, multitasking, and cultivating an abundance of patience and empathy.  Professional networking groups like All Before Dinner can be a great resource and support network for working parents. On today's episode of the Taxgirl podcast, Kelly is joined by Lisa Jerles and Mara Geronemus to chat about pursuing a successful, fulfilling career while also being a mom. Lisa and Mara are the founders of All Before Dinner, a professional networking group for working moms. They are both attorneys and mothers, and describe the group in terms of changing the narrative around motherhood, which is often seen as a liability rather than an asset. The group focuses on business development, and personal and professional growth for working moms across a variety of industries.  Lisa is a commercial litigator at Kluger, Kaplan, Silverman, Katzen & Levine, where she focuses on complex business disputes and litigation strategy. Mara is a corporate attorney and the founder of Geronemus Law.  Listen to Kelly and Lisa talk about professional networking as a working mom:What seem to be the trends for working parents returning to work right now, by the numbers between men and women? Are women and moms not returning to work to the same degree as men and dads?  As kids get older, their interests and activities become more complex and demanding, and as parents it becomes more difficult to plan accordingly. The idea of childcare can seem one dimensional, but there are really so many facets to it that will vary for every family. How can working parents manage their time between work commitments and family commitments?  One of Kelly's pet peeves with some working parents is how they'll talk about their lives without ever alluding to or admitting to assistance with childcare. It's important to set an example for younger professional parents that it's okay to have help, and it's great to have a support system like a networking group as well.  All Before Dinner was started a few months before the pandemic hit. What impact did the pandemic have on their group, and what do they think draws a working mom to join the group? Lisa and Mara say “interest exploded in 2020.” Kelly says parenting still falls a lot on the moms, whether we like to think about it that way or not. She says in her experience, schools will always call her cell phone first, even if calling her husband would have been much more convenient for their family. How does this bias impact moms' professional lives?  No matter the profession, there are times when a working parent can predict their availability better than other times. Networking groups can help working parents feel solidarity during the busy times and the unpredictable times.  Kelly shares an anecdote about when she had to take her baby to a networking event and was terrified she'd get a lecture about it, but that everything turned out just fine. What contributes to the negative stigma toward working mothers, and how can the stigma continue to be broken down?   A lot of working parents operate outside of standard working hours. To what extent is this a healthy practice, and how easily can it become all-consuming? From email scheduling to attending Zoom meetings from the carpool line, Lisa and Mara share their tips for balancing work and family.  What is the long term plan for All Before Dinner? Lisa and Mara say they will continue to meet virtually, and hope to integrate in-person...

When you hear the words “company culture,” what comes to mind? Workplace culture is a hot issue these days, especially as it relates to jobs and the so-called “Great Resignation.” What do employees really want: freedom, tangible perks, a more inviting company culture? CEO and Entrepreneur Jay Steinfeld shares his story of success and expertise when it comes to corporate culture.  “If you want to do things of consequence, if you want to build consequential things, I think you must first help people become consequential.” - Jay Steinfeld, on improving company culture. On today's episode of the Taxgirl podcast, Kelly is joined by Jay Steinfeld to chat about corporate culture and the impact it can have on a company's workforce. Jay was the founder and CEO of Global Custom Commerce, which operates the world's number one online window covering retailer, blinds.com. Jay bootstrapped the company in 1996 from his garage with just $3,000; Global Custom Commerce was acquired by The Home Depot in 2014. Jay remained the company's CEO, and later joined The Home Depot's Online Leadership Team.  After stepping away from these roles in early 2020, Jay has increased his involvement in numerous private company boards and serves as a Director of the public company, Masonite. He also teaches Entrepreneurship at Rice University's Jones Graduate School of Business, and supports numerous charities. Jay is an Ernst & Young Entrepreneur of the Year, and has earned a Lifetime Achievement Award from the Houston Technology Center.     Listen to Kelly and Jay talk about company culture and the Great Resignation:How did Jay start his business, how did it grow, and how did he make a name for himself in the booming world of tech and entrepreneurship? Jay says he frequently tells entrepreneurs to “experiment without fear of failure.” Experimentation is necessary and key to evolving and growing any venture. When he began his company in the 90's, it was before even Amazon was born. He built his business one step at a time, and gave himself permission to fail. The idea of failure can be terrifying for small businesses because of the heavy stakes on the line. How does Jay advise small or startup businesses to experiment and take risks with confidence? What does Jay wish he'd known before he started his business in the 90's?  How did Jay approach hiring decisions while growing his business? How can business owners know when to expand hiring, even when finances are tight?  Did dynamics change when Jay sold his business to Home Depot? Jay shares how the transition went: the CFO said they'd expected him to get tired of them and quit after 90 days, but Jay stayed on for 7 years after the acquisition.   Jay explains the idea of business “love languages” and how to find harmony with team members of different strengths, disciplines, and personalities.  When Jay's company reached significant milestones over the years, how did they impact the company (and the way Jay ran the company)? Jay details his definition of success and the way it informs his strategic choices in both workplace culture and business operations.  Kelly asks Jay to describe the moments when he “felt” successful along the journey of growing his business. He shares he felt many of those moments over the years, though sometimes the impact of his success came to him retroactively.  As the head of a growing business, Jay says he often felt he was seen as intimidating or scary, which greatly bothered him because he genuinely wanted everyone's voice and feedback.  How does Jay feel employee's thoughts on their superiors plays into today's Great Resignation? What advice does he have for companies to make their management teams more approachable and receptive? Jay says what people want most is autonomy. Why not give more generosity to employees? More traction, more upward mobility? More transparent conversations?

The recent agreement on a global minimum tax, and other changes to tax rules around the world, have called into question the future of tax competition. Each year, The Tax Foundation puts out their International Tax Competitiveness Index. The Index seeks to measure the extent to which a countries' tax system adheres to important aspects of tax policy. Among so many changes and the global minimum agreement, is the annual index still relevant today?  International tax policy is heating up in the wake of the OECD's global minimum tax agreement. Listen to Kelly and Daniel Bunn tease out the details of tax competitiveness and the global tax agreement in plain English.On today's episode of the Taxgirl podcast, Kelly is joined by Daniel Bunn to discuss the relevance and nuance of the International Tax Competitiveness Index. Daniel is the VP of Global Projects at The Tax Foundation, where he researches international tax issues with a focus on tax policy in Europe. Prior to joining The Tax Foundation, he worked in the US Senate at the Joint Economic Committee as part of Senator Mike Lee's social capital project. He was also on the policy staff for both Senator Lee and Senator Tim Scott. During his time with the Senate, Daniel developed legislative initiatives on tax, trade, regulatory, and budget policy. Listen to Kelly and Daniel talk about the OECD and the Tax Competitiveness Index:Daniel recently penned an article (linked below) about whether or not the Index and “competitiveness” models will matter in years to come as the OECD deal moves forward. What is a quick synopsis on today's status on the OECD deal? How does a tax rate factor into tax competition? Daniel explains the nuances surrounding tax rates, and how The Tax Foundation generally considers them as a means to fund various public programs, which can affect tax competitiveness in many different ways.  One word that comes up a lot in discussions of tax policy is “distortion.” Daniel explains what distortions are in the realm of tax policy, and how they factor in to the big picture of the global tax landscape. When talking about the global tax agreement, Daniel says a lot of the implementation over the next few years will come down to behavior changes on both the company side and the government side.  A big sticking point during international discussions pertaining to the OECD was the digital services tax, and how different countries and governments will shift as a result of doing away with the digital services tax long term. How does Daniel anticipate governments may react as a result? One of the interesting premises of the deal is that everyone has to cooperate in order for it to work as intended. So far, a majority of countries (more than 130) have signed on in agreement, but not yet all of them. Is Daniel concerned by lingering resistance down the road? Is there any fear that all the agreements carefully laid today could be undone by future elections? Daniel unpacks the roles that diplomacy and politics play in the OECD as well as in compiling the Tax Competitiveness Index. For someone who's never seen the annual index before, Kelly says she would expect people to assume the larger global powerhouses to be at the top of the tax competitiveness rankings. However, this is certainly not always the case. Daniel explains why this happens and how some of the smaller countries get placed toward the top of the list. In general, it seems the index rewards simplicity in tax policy in favor of high complexity, which is likely why the US is ranked lower than many others. What are Daniel's thoughts on the US's ranking and what are the factors that contributed to its place in the index? How does remote work tie into tax competitiveness? In Daniel's tax writing he discusses how some of the smaller high-ranking countries, like Estonia and Latvia, are trying to “woo” remote workers with their tax policies.  Kelly says one of her favorite pieces of the

The past year has taken a huge toll on both tax professionals and taxpayers, something Taxgirl talks about frequently. According to a 2021 survey from Robert Half, more than 44% of employees say they are more burned out on their jobs today than they were a year ago. Employers and employees are seeking all kinds of solutions to burnout and the labor shortage.  “People want to work in peace, not in pieces.” In today's age of workplace burnout, retaining happy and healthy employees is more important than ever. On today's episode of the Taxgirl podcast, Kelly is joined by Iralma Pozo to discuss how tax professionals can prioritize their wellbeing to curb burnout. Iralma is an independent consultant with more than 15 years of financial expertise, and an adjunct lecturer in Accounting at John Jay College in New York. She is an active member of the New York State Society of CPAs, and most of her experience is in the not-for-profit sector, having held financial leadership and public accounting related roles. She has also worked for the IRS, and has experience working with entrepreneurs, small businesses, and the real estate and insurance sectors.    Listen to Kelly and Iralma talk about burnout and workplace wellbeing:What does Iralma think the tax code and related provisions can offer taxpayers, and how can tax professionals remain fulfilled and excited about their careers? Working from home (and spending more leisure time at home) means we are sitting more often than we used to. Iralma and Kelly talk about how standing desks, the benefits of carpet, and going for walks can all impact a person's mental wellbeing and productivity. How much of an employee's wellbeing falls on the employer? What items, practices, or trainings are truly “essential” to efficient and healthy remote work?  What are the tax credits and/or benefits available to businesses to help them make employees most comfortable and prepared in such trying times? So many businesses say they've already accommodated everything they thought could be useful, so what else is there to help put their employees at ease? What are some things employers can do to turn things around for their employees? Iralma references Section 139, to start. Kelly says, happy employees are productive employees.  Where does mental health and mental illness factor into employee wellbeing? Iralma talks about the remaining stigma with mental health, and what employers can do to bridge that gap. Iralma says, “Employers should be looking at supporting the whole person.” What does that mean for all aspects of an employee's work? Does it mean cutting down on meetings, covering therapy costs, offering more flexible hours? How can companies take into account “modern day living,” as Iralma calls it, and what can be done to ease the pressure on employees? Some companies like Bloomberg have started to offer anonymous tiered benefits (such as therapy) that have levels available to the employee without cost out of pocket. How are these services impacting the employee's wellbeing, for better or worse? How are these services being communicated?  How can employers simplify their accommodations and benefits to their employees? So many employees say they weren't aware of certain benefits or didn't know they could submit a certain expense. Whether it's regular emails or an annual follow-up, HR departments can remind their employees of the benefits available to them.  “Employers need to start incentivizing people by the results and the value, not just the utilization rates and the facetime,” Iralma says. People have new priorities these days, and when employers don't respect those, it contributes to stress and burnout.  How can employers reshape the notion of “fun” or “perks” into self care, while maintaining the same level of priority and respect for employees that desire those aspects? Ultimately, employers are dealing with real people. Different...

Big Four accounting firm PwC made waves earlier this year when it introduced a “work anywhere” policy for its 55,000 US employees, allowing them to choose an all-virtual work option. The policy is intended to help PwC attract new talent and retain top talent in a competitive market.  The tax profession isn't always leading the charge when it comes to workforce changes, but some big firms, like PwC, are adopting new flexible “work anywhere” policies to attract and retain top talent. On today's episode of the Taxgirl podcast, Kelly welcomes back Kathryn Kaminsky to discuss more about expectations of today's competitive workforce, and what the implications of a “work anywhere” policy can mean for businesses. Kathryn is Vice Chair and Trust Solutions Co-Leader at PwC. In this role, she leads the combined Tax and Assurance business. Kathryn is responsible for the quality of service, excellence in the work performed by partners and staff, developing diverse teams, and driving innovation. Her biggest passion is serving clients. Listen to Kelly and Kathryn talk about work anywhere policies:Many industries are grappling with work anywhere policies in various ways. What does Kathryn believe led to PwC's policy, and what does she think about it overall? Kathryn says it's important for businesses to remain agile and adaptive in a changing business environment, and doing so affects both a company's staff and clients.  Kathryn unpacks the hot issue of the “talent war,” also referenced as “the great resignation” sweeping across the country in the aftermath of the pandemic. She says companies have to prioritize open-mindedness in such a time in order to keep their top talent and attract new talent. Adaptation and innovation will drive a company's hiring right now.  On the client side, has there been a lot of pushback against working with a largely remote firm? Kathryn says it varies with each client, but that each client knows they're at the center of it all, and they know that just because some staff is remote doesn't mean they have less access to their services.  What options did PwC lay out for its staff, and what procedures are in place to audit the effectiveness of the new policy? Kathryn says almost 60% of their staff chose a hybrid option to work remote as well as in the office, and that every six months or so they will be checking in to see how smoothly the policy has been going for everyone.  For a lot of employees, working from home in the fall of 2021 is very different from working from home in the fall of 2020. Kids are back in school, going to soccer practice, in general there weren't as many distractions in 2020 that have now largely returned in 2021. How is PwC looking at flexibility differently now versus during the height of the pandemic?  Did PwC change the layout of their physical offices to accommodate their new work model? Kathryn says they've always had a lot of open space and conference rooms, and now those are some of the most utilized spaces since some employees will be in person and some will be virtual thanks to technology and video chat.  What is the level of enthusiasm overall across the PwC workforce? Kathryn says it's been a great response, and they like having the option to work anywhere. Now, it's PwC's responsibility to make sure their staff has the tools to succeed in this new flexible environment.  Some of PwC's competitors have insinuated that they would resist such a dramatic shift to widespread work flexibility. What does Kathryn think about this difference in philosophy, and how might it affect the talent pool between the large firms?  Is PwC seeing an increase in employees' travel, and how does travel affect their flexibility model? The policies have stayed very consistent, Kathryn says.  Is PwC following up on where their people are working? From a business perspective, there's certainly an advantage to knowing where your employees

In April, Kelly announced the first Bloomberg Tax & Accounting Insights student writing competition. The contest sought to highlight the very best of student writing. A panel of judges from the Bloomberg Tax team scored and reviewed every entry, and the winners from schools around the globe represent the best young talent in the tax profession. The best and brightest young tax students submitted topical writing to Bloomberg Tax earlier this year. Today, Kelly speaks with two of the winners about their tax writing and commentary.On today's episode of the Taxgirl podcast, Kelly is joined by two student winners of the 2021 Bloomberg Tax writing competition: Elliot Bramham and Travis Nix. Elliot is a student at the University of East Anglia. Travis is a student of tax law at Georgetown Law. His tax commentary has been featured in Tax Notes, Fox News, National Review, and the Chicago Tribune.  Listen to Kelly, Travis, and Elliot talk about their tax writing:Why did Elliot enter the Bloomberg Tax writing competition, and what about it was interesting and exciting to him?  The idea of citizen-based taxation, the topic of Elliot's writing piece, is highly controversial in the US. He also touches on the subject of FBARs. What drew Elliot to writing about such nuanced tax topics?  Elliot says many institutions have been known to close accounts of American expats with capital still in the accounts. He tells Kelly he would be surprised if she could still easily file for an FBAR today as opposed to when she was a student studying abroad in England.  What are Elliot's favorite aspects of studying tax? He says he's most fascinated by international tax between countries, especially bilateral treaties that were established years ago but are now made more complicated by the introduction of new tech and financial products in the industry. Has Elliot been following the OECD, and what are his thoughts on any potential resolution? He says it's probably too early to tell about whether an agreement will be reached, but that there are so many international conversations taking place as a result.  Europe has widespread real time reporting, while the US decidedly does not. What are Elliot's thoughts about the differences, and might it be easier to reach an agreeable conclusion if the US practiced real time reporting? What does Elliot think he wants to do after school in the field? He shares he is most interested in financial planning, and is excited to head further into the profession when he's finished with school.  What inspired Travis to enter the tax writing competition? He says he highly respects Bloomberg Tax as a publication and was excited to share his commentary with such a distinguished outlet.  Travis's piece was very well received and featured a discussion about the gig economy. What sparked his interest in writing a gig economy piece from a tax lens?  Kelly says she feels it's often understated how big the gig economy really is in the US. Travis agrees that so many people are gig workers in some way, whether part time or full time. But many gig workers aren't fully aware of the reporting requirements for their circumstances. What are Travis's thoughts for increasing compliance for the gig economy, as well as making reporting easier for gig workers?  After one of Travis's tax articles, Uber reached out to contact him and ended up distributing a form to its delivery drivers to better inform them about their reporting options and expectations. Regarding a standard business deduction, what are Travis's high-level thoughts for rolling out an ideal solution across the board, while keeping in mind that the gig economy is full of nuance? Is corporate tax the most exciting part of the profession for Travis? From policy, to planning, to compliance, what area of tax does he hope to dive into after finishing his studies? More about Kelly: Kelly is the creator and host of the Taxgirl

PWC recently announced it's allowing its 40,000 client-facing employees to work remotely from anywhere in the US. Joining companies like Facebook and Allstate, more and more employers are shifting to permanently remote models to attract and retain top talent. But what are the tax and legal implications of additional jurisdictions, employee schedule flexibility, and changes to company infrastructure? 91% of job-seeking Americans now expect flexibility to work from home. But what are the long term impacts of a large scale remote workforce, for both the employee and the employer? On today's episode of the Taxgirl podcast, Kelly is joined by Nishant Mittal to chat about what the widespread work-from-anywhere shift will really mean for employers and employees. Nishant is the SVP and GM of Topia's Business Travel solution responsible for strategy and growth. Nishant joined Topia as part of its acquisition of Monaeo, a tech company he co-founded and led. He is a published author with publications in machine learning and image processing, and leading peer-reviewed journals. He has a BS in Computer Engineering, an MS in Biomedical Engineering, and an MBA from Stanford's Graduate School of Business. Listen to Kelly and Nishant talk about the pros and cons of remote work:Many companies and tax professionals are talking about this buzzy idea of remote work, and how it fits into a long term workforce model. What are some of the details and various models businesses are considering now? Is it fair for companies to be promising permanent remote work benefits, or is it a model that could be dialed back in the future? Nishant discusses the flux in labor and employee movement right now, and how offering remote work has become a strategic issue. What kinds of concerns do employers have about shifting to a more remote workforce? From remote work, to hybrid work, to flexible scheduling, what are the pros and cons to each of the different models companies are considering? There are many gray areas, Nishant explains, especially when it comes to all different models of “hybrid work.” How does jurisdiction play into remote work, and where does tax law come into play? What are the tax reasons that employers may not want to offer fully remote work, meaning allowing their employees to work from anywhere in the world?  The employee perspective: It is not clear that employees understand the impact of what working from a different jurisdiction would mean, particularly from a tax perspective.  The employer perspective: In a post-Wayfair world, doing business across state lines without a brick-and-mortar home base is the new normal. Employees don't always consider how working from another state (or country) may impact the tax liability of their employer.  Home office deduction is currently only claimable by small business owners and independent contractors, not by W-2 employees. If this doesn't change, how might that impact the remote work demand? After payroll, real estate is usually the second largest cost for employers. Nishant suggests we may see employers adjust compensation for remote employees to offset home offices, since they likely won't be paying as much overhead for company office space. Many companies, particularly startups and tech companies, became infamous pre-pandemic for having flashy perks and company culture benefits in their office space. Where does Nishant see those accommodations evolving, and how might company culture take a turn with a primarily remote workforce? In order to accommodate labor laws, will companies have to restrict jurisdiction changes, or even implement systems of employee tracking? Nishant shares some fascinating stats from HR professionals and employees on self-reporting and tracking employee's work footprint. In regards to compliance, how can small and midsize companies plan for these kinds of changes? Nishant shares his plan of attack for strategic, proactive planning when it...

From work from home, to deductions, to Wayfair, it's clear that state and local taxes (SALT) have become critical in the tax world. While the larger focus used to sit squarely on federal taxes, the industry lens seems to be shifting toward SALT more and more. State and local taxes can seem complicated, especially in a nearly post-pandemic economy where so many taxpayers are still working remotely. How does the federal tax realm compare to SALT?On today's episode of the Taxgirl podcast, Kelly is joined by Jamie Szal to chat about why this shift is happening and why SALT is so crucial to today's tax landscape. Jamie is a tax attorney at Brann and Isaacson, where she focuses on assisting businesses with state and local tax controversy matters from audits and administrative proceedings through civil litigation. She is a graduate of Trinity College, and earned her JD from Northeastern University School of Law.    Listen to Kelly and Jamie talk about the impact of state and local taxes:Beginning with a BA in International Studies, Jamie chats about her diverse background and what led her to specializing in state and local taxes. On the brink of a new job with a US intelligence agency, Jamie realized she was more interested in the context and legal specifics of the ordeal and decided to pursue law school instead.  Jamie says, “The last three years since [the Wayfair verdict] has been like the wild west.” It opened the doors for states to go after businesses that didn't have a physical footprint.  The complexity and nuance to state and local tax can be extremely overwhelming, even to professionals. Jamie shares how she's learned to stay focused and on top of her practice over the years.  What does Jamie think could happen down the line as a continued result of the Wayfair case? How might the federal code and statutes interact with these new ideals? In this modern age, to what degree are company websites considered when evaluating commerce and taxes across state lines?  Is there an anticipated aggressive audit cycle to come as we emerge from the pandemic?  How are states making proactive movements to gain information for any audits? What are the underlying causes that could be motivating these initiatives?  As someone who specializes in SALT, what does Jamie spend most of her time working on? She says she spends a fair bit of time in the litigation world, as well as a lot of time deep in strategic planning conversations.  Jamie also says the procedural side of SALT is just as varied as the code itself. Everything depends on the fine print of the local laws and jurisdictions. How does she go about nailing down those specifics and finding seasoned experts in certain regions of interest?  The value of LinkedIn can't be understated. From searching for clients to expanding a vast network, Jamie sings the praises of LinkedIn, especially when it comes to finding niche experts in her field.  Kelly and Jamie chat briefly about their experiences as women in the tax world, and how the demographic may be shifting in the future, even as soon as post-pandemic. Jamie says she's noticed a significant difference between women in the public tax sector versus the private sector, maybe because of hours or flexible scheduling.  How can women in tax “balance” their careers, lives, and families without feeling like they're sacrificing time in any area? What are Jamie's dream career goals? She says she would love to work on another supreme court case. More about Kelly: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. You can find out more about Kellyhttps://www.taxgirl.com/about-taxgirl/ ( here) and you can follow her...

In September, there were still about 17.6M tax returns awaiting processing. Not to mention, the IRS anticipates receiving over 4M more returns in October. The delay has resulted in a lot of frustrated taxpayers, especially those grappling with error notices and being charged penalties and interest for alleged mistakes. Those penalties add up. For the fiscal year 2020, the IRS assessed nearly 31.4B in civil penalties. But are those penalties fair? Are there claims or defenses that can get taxpayers out of those penalties? There's a lot that can go wrong while filing a tax return because the tax code is so huge and increasingly complicated. How can taxpayers seek accessible tax advice, and even defend tax penalty notices if necessary? On today's episode of the Taxgirl podcast, Kelly is joined by Andrew Gradman to chat about the general scope of tax penalties and what taxpayers can do about them, both proactively and retroactively. Andrew is a tax lawyer in Los Angeles specialising in transactional matters. He's the principal at the Law Office of Andrew L. Gradman. He received his BA from Stanford University, his JD from Columbia University, and his Tax LLM and Business Certificate from NYU. He is admitted to the bar in California and Nevada.  Listen to Kelly and Andrew talk about tax penalties: One of the tax penalties that taxpayers are likely most familiar with is IRC 6662, which is an accuracy related penalty. Andrew explains what the details mean and why it exists in the first place. He says, “Penalties are the heart of the tax law.” There's no intent required to be faced with a tax penalty like IRC 6662, which are sometimes referred to as “strict liability penalties.” Why is that rule in place, and how can taxpayers stay on top of these standards? It all comes down to reasonable cause and good faith. Whereas the big problems are negligence and disregard of rules and regulations.  How does negligence apply to taxes? What counts as negligent tax behavior? What are some examples of tax negligence? Andrew explains in plain English that in general, negligence is “a failure to make a reasonable attempt to meet the Internal Revenue laws.” It can also include failure to keep adequate books and records.  If a taxpayer receives a notice for a tax penalty, what can be done about it? If an individual feels the notice isn't “fair,” what options are available to them? Many penalties can be defeated by “reasonable cause” and “good faith,” though there are still some strict liability penalties that are more difficult to combat.  Since the FAQ section of the IRS website is notoriously not to be taken as a binding authority, how can taxpayers reasonably inform and arm themselves against tax penalties?  How can taxpayers prove reasonable cause and good faith in defense of tax penalties? What resources are available during the process? What does “substantial authority” mean in tax law? When there is a mistake when filing, who's responsible? Is it the individual, is it the preparer? What happens next? Andrew says it depends on contracts, courtesy, and (unfortunately sometimes) malpractice.  Sometimes clients don't know that relevant and important information is, in fact, relevant and important when it comes to their tax return, which can lead to an error or penalty down the road. Plus, bad tax advice has never been more abundant than it is now in the age of TikTok and viral media. What is Andrew's advice for finding good and accessible tax advice? When people have access to a tax professional, how candid can they be? What information is necessary to disclose, including bad information or advice they may have heard?  It can feel overwhelming to receive a tax penalty notice. Staying informed and having tax professionals in your corner will give you the tools and empowerment to take a breath and solve the problem.  More about Kelly: Kelly is the creator and host of the Taxgirl...

It's been a long 18 months for tax professionals. But is there light at the end of the tunnel (deemed #marchternity by Twitter)? According to the 2021 Accountants Confidence Report, tax and accounting professionals are confident their clients' finances will improve over the next 12-18 months. However, the same report shows industry professionals are also pessimistic about the overall health of small businesses and the US economy within the same time period.  The puzzle of tax compliance is complicated, especially for small businesses. In the midst of ever-evolving tax codes and changing technology, how can business owners remain confident and proactive? On today's episode of the Taxgirl podcast, Kelly is joined by Sona Akmakjian to chat about the changing tax landscape and how business owners can remain empowered and informed while embracing new technology. Sona is Avalara's executive leading global account partnerships and programs. As a CPA with 29 years of transactional tax services and automation experience, Sona is recognized for her deep industry expertise. Her vision is to offer innovative solutions that enable firms to support clients with end-to-end scalable global solutions. She advocates for global, strategic, mutually beneficial relationships with all accounting firms.  Listen to Kelly and Sona talk about technology and tax compliance:It's been such a long year for tax and accounting professionals. What are the things that tax and accounting professionals are concerned about going forward in the profession? Sona says her firm interviewed over 500 accountants during the pandemic, and found some surprising results. What are the details of the 2018 Wayfair decision, and how does it affect businesses today?  At the same time tax professionals are trying to sort out the changing tax laws, businesses are scrambling to stay compliant while the laws are constantly shifting. How can practitioners and business owners stay on top of the curve to remain compliant and proactive? What is the “cost” of compliance? Whether it's new technology, more complex returns, more overhead, etc, the consequences of getting caught out of compliance are always worse than the cost to remain in compliance. But how can businesses plan for that? Sona says, “I don't see how compliance can be achieved in this world without some form of automation.” Technology now allows businesses and tax professionals incredible tools that are both intuitive and efficient. How to embrace technology and integrate the systems painlessly. There may be a learning curve, but adopting new systems will alleviate some stress and time in the long run. Sona says that while change management can be challenging, technology will overall add efficiency and accuracy. During the pandemic, tax and accounting professionals have had to spread their attention and effort across many additional areas, in both their personal lives and their professional lives. How has this extra fatigue trickled down to the industry as a whole? Thinking about the future, what might tax compliance and technology look like in the next few years? Will states become more “aggressive” overall, will there be a greater push for technology, or will there be a shift in the industry standards? Sona says it seems that state governments are becoming more data savvy, perhaps partly as a result of a big tech push while employees were working remotely. Does Sona anticipate any concerns in regard to data sharing between states? Speaking candidly, she says she expects we'll probably get more and more used to sharing data. “Everything is in the cloud,” she reminds listeners. It's all about an efficient transition. What are Sona's words of wisdom for professionals that are more reluctant toward technology and data sharing? She says, “Just look at your financial systems. It's all in the cloud.” As long as the tech companies have the right controls and security systems in place, there's...

Over the past year, Kelly has talked a lot about “the profession.” Broadly, that refers to the tax world. However, tax as a career isn't always easy to categorize, and not all tax professionals are accountants or preparers. Kelly is often asked how to get started in tax, and since the answer can be so nuanced, she was inspired to start an occasional series highlighting nontraditional tax careers. There are so many careers in tax besides accounting and preparing. For those who find data, legislature, and current events most exciting, tax reporting could be the perfect career. On today's episode of the Taxgirl podcast, Kelly is joined by Allyson Versprille to chat about her career as a tax reporter. Allyson is a senior reporter covering tax and the IRS with Bloomberg Tax. Her articles deal with everything from significant regulatory developments to administrative news, especially that which involves the IRS. She has also worked as a reporter on Capitol Hill, writing about major tax legislation including the major 2017 tax overhaul. She's appeared on Bloomberg Radio and Bloomberg Surveillance, as well as Bloomberg's Talking Tax. Her work has appeared in Wealth Management Magazine and Accounting Today. Her reporting on state and corporate tax issues has won awards. Listen to Kelly and Allyson talk about her career in tax and reporting:How did Ally choose a career in tax reporting, and what steps did she take to get to where she is now? Ally shares her experience in college learning about broadcast journalism and ultimately switching her focus from pre-med to journalism. How did her early days of journalism take her to tax reporting? When she began her reporting career she was interning in New York City and covering news on Ebola. Eventually, she received an email from a Bloomberg representative that they were interested in bringing her on board as a tax reporter.  While she never thought she'd become a tax reporter, Ally says now she's always telling her team "there's always a tax angle." How does Ally get her stories, and how does she decide what will make a good piece of tax writing? She shares how she often will speak to other industry professionals about what current events or concepts are buzzing around their firms and offices, and she also has a finger on the pulse of #TaxTwitter and social media to gauge what topics are most prevalent. Where does she get her sources, and does she ever have anonymous sources? Where does she get her sources, and does she ever have anonymous sources? She does sometimes use anonymous sources, but that's not very common. How did Ally learn how to decide what stories are worthwhile and which pitches aren't worth her time? She follows the most interesting and exciting story ideas in general, and also says she tries to connect with sources within a day of the event breaking. Anything with interesting data, headlining news or topics, or a particularly unique angle catches her eye as well. What's her favorite part of tax reporting? Ally says anytime she finds a story or topic that no one else has “discovered” yet, the feeling of “getting a big scoop,” is what keeps her excited about her job every day. What's her least favorite part of the job? She shares with a laugh about the stress of receiving a dense IRS regulation debrief on a Friday afternoon. Also, occasionally in the process of breaking a story, someone else will beat her to it, which can be pretty frustrating. Who does Ally wish she could interview? She says she'd love to sit down with IRS Commissioner Charles Rettig, and would also be excited to interview Mark Mazur again since he stepped into his role dealing with tax policy. What advice does Ally have for someone just starting out in reporting? In college, try to find a specialty in the journalism sphere. Outside of school, she says her best advice is to simply reach out to people in positions that you would love to be in yourself to make some network connections.

At age 26 in 2008, pop star Britney Spears was put under a court-sanctioned conservatorship. That meant that other people (including her father) that had been named as a conservator were allowed to make decisions about her career and her money. The story has attracted so much attention that it has its own New York Times documentary, and its own hashtag on Twitter, known as the #freeBritney movement. Recently, after 13 years of acting as a conservator, Britney Spears' father finally agreed to step down from his position managing his daughter's estate and career. Britney Spears' conservatorship and the associated #freeBritney movement has brought a lot of attention to these legal scenarios, but what do guardianships and conservatorships actually entail?On today's episode of the Taxgirl podcast, Kelly is joined by Alexandra “Sasha” Golden to explain more about conservatorships and why Britney Spears' case has folks so captivated. Sasha received her undergraduate and law degrees from Boston College, and has been practicing law in Massachusetts since 1994. Attorney Golden is a long-standing member of the Massachusetts chapter of the National Academy of Elder Law Attorneys (NAELA) and of the Probate and Solo and Small Firm sections of the Massachusetts Bar Association. Listen to Kelly and Sasha talk about Britney Spears & conservatorships:What is guardianship and conservatorship, and why do they feel so “extraordinary” when it comes to major cases like Britney Spears? Sasha explains a guardianship is control of a person, while conservatorship is control of a person's estate. However, in California (where Britney's case has been handled), both are lumped together as a conservatorship. What are the specific reasons a court may instate a guardianship or conservatorship? Sasha details the details in the law that point to an individual that is incapacitated or unable to make decisions for themselves; the first key step is to obtain clinical proof of the individual's condition/s. In the case of Britney Spears, the courts had to receive detailed statements from doctors and psychologists that confirmed her incapacitated state in order to place a conservatorship in place. Oftentimes, guardianship can be consensual between guardians and the individuals. On the other extreme, such as a case with someone with advanced dementia, an individual may not be able to agree or disagree to anything and a guardianship is put into effect for their best interest. After a guardianship or conservatorship is put in place, there have to be periodic updates and revisits in the court to share how things are going and what recommendations may be going forward. There's often a lot of money wrapped up in these conservatorships. In the Spears case, her personal estate is somewhere in the range of 60 Million. Managing an estate as a conservator has to be in the best interest of the individual. But Spears' father has taken $16,000 a month for his own salary, while Britney herself has been given $2,000 a month of her own money. Who gets to be the guardian or conservator? It can be a family member like a spouse, child, parent, or sibling, but complications can arise when conservators do not manage their responsibilities to the individual's best interest.  What happens when conservators mismanage funds, or even well-meaning conservators hire financial assistance that goes haywire? The fault falls on the person acting as the fiduciary, but the details can get hairy.  What are some good steps to take initially if someone feels a person in their life might need a conservatorship? Sasha says she always encourages people to start by hiring a geriatric care manager to help sort out details and be an advocate for the individual. The next step would be bringing an elder care attorney into the team. Something that's getting a lot of buzz now is called supportive decision making, where a person chooses people in their life to give them feedback on...

In March of 2020, Congress introduced a new tax credit: the Employee Retention Credit (ERC) as part of the CARES Act. The ERC was a direct response to the pandemic and was designed to help businesses keep employees on the payroll. But the ERC got off to a rocky start and was quickly overshadowed by its pandemic cousin, the Paycheck Protection Program (PPP). Nearly a year and a half later, the IRS is still issuing new guidance on the program, even as Congress is considering phasing it out.  Business owners have dealt with a lot over the past year and a half - both the ERC and PPP are simple to claim and can offer relief retroactively.On today's episode of the Taxgirl podcast, Kelly is joined by Dan Chodan to sort out all the intricacies of the ERC and PPP, and what they mean for taxpayers. Dan is a tax partner at Troup CPA, located in Lancaster, Pennsylvania. He has spent the past two years leading Covid relief efforts for clients, including grant programs, the PPP, and tax credit relief.  Listen to Kelly and Dan talk about the ERC for business owners:How does the ERC benefit business owners? As a refundable tax credit, the ERC is relief money. Its name may be part of the general confusion. Dan says, “We should be calling it PPP Round 3.” As a payroll tax credit, how does it work? What are the mechanics? Filing the ERC is actually much simpler than the PPP: it's only a few lines of paperwork.  Who is eligible for the ERC? Any businesses that saw a shutdown or partial shutdown of their business, and experienced a revenue drop of at least 20% (in 2020 businesses had to prove at least a 50% drop). The timing can be complicated for retroactive filing for the ERC. It's not too late to file and receive those funds. Dan says this could be “the great treasure hunt” for accountants; businesses can file as late as three years after experiencing a covid-related shutdown. Unlike PPP, there are no restrictions on size of the business for the ERC. There are limits on how it can be filed depending on business size, but any business can claim the credit in some way. Are there any business scenarios that absolutely would not qualify for the ERC? Is the credit all-or-nothing, or can a business qualify for some quarters and not qualify for others? Since the ERC is based on payroll taxes, it has to do with W-2 employees and 941s. Since it's only based on W-2 wages, so contractors aren't qualifiable.  Business owners have learned many lessons over the last year and a half, from the way they keep records to how frequently they audit those records to the importance of up-to-date bookkeeping. How can businesses stay on top of the changing guidelines and updates to the ERC? Dan suggests identifying a champion in the office whose sole responsibility it is to keep up with the current information.  How did Dan migrate toward focusing on pandemic relief? When the pandemic hit in March 2020 and his firm was working remotely for the first time, Dan says he was tapped to be the expert on PPP, which snowballed into learning all about ERC as well. What are Dan's thoughts about whether the program will be cut short or be extended? He says everything is currently still up in the air, though we may lose the fourth quarter of this year. There's a newly proposed infrastructure law to the bill that would end the program at the end of September, rather than the end of 2021.  While it has been a long tax season and many tax professionals have been outspoken about feeling fatigued, Kelly and Dan chat about how the changes and new tax laws also provide some excitement to newer tax professionals in the field.  More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others...

While the subject of partnerships has brought Kelly many headaches, many tax professionals are drawn to them because of their notorious detail and nuance. It may come as no surprise that new tax technology innovations often find their way into the world of partnerships before other areas of the tax practice. As the complexity of business and partnerships grows, so does the challenge of tax compliance. For this reason, tax professionals are excited about the boom of technology and data tools in the field. Tax professionals are staying ahead of the ever-changing tax code by embracing innovative tax technology, from artificial intelligence to new, more streamlined iterations of Excel.  On today's episode of the Taxgirl podcast, Kelly is joined by Jerry Musi to chat about how tax technology can help with the ever-growing puzzle of tax compliance. Jerry recently penned an article for Bloomberg Tax, and is a Tax Partner at RSM US LLP specializing in asset management funds. He is also the RSM US LLP national tax financial service industry leader. He's been in practice for over 25 years, and he's heavily involved with promoting the firm's partnership tax technology program.  Listen to Kelly and Jerry talk about tax technology and how it factors in to partnership tax conversations:The combo of tax and technology can feel overwhelming since both fields can be so complex. How did Jerry get into both fields to begin with, and how did he learn to combine them harmoniously? What does a modern private equity fund look like today, and how have they changed over time? Jerry shares, in plain English, what these funds are and how technology is playing a part in their management. LLCs and LPs can often go hand in hand, so how does everything intertwine together in the tax compliance world? Jerry helps parse out the details from investments to real estate to K-1s to data and technology. For such complex concepts, what technological tools are available to practitioners? While Excel has always been a staple in every tax professional's toolkit, Jerry shares how advancements in artificial intelligence and new software programs are changing the game as well. How do clients respond to changing tax technology, how are other partners at the firm reacting? Jerry says the response has been overwhelmingly positive and receptive.  The tax world is always changing, so how do professionals like Jerry approach the changing industry climate while still remaining focused on technology and innovation? When it comes to partnership tax, what pieces are notably more streamlined since implementing technology? Jerry says it's the allocations that often give practitioners the most headaches, but with AI and state of the art tax software, the process is significantly less hairy and more efficient. Tax technology aside, does Jerry feel the tax profession is more exciting or more frustrating with the increasing complexity of the tax code over the years? In Jerry's view, he finds it exciting. For instance, he reminds listeners, each state has individual laws and nuances when it comes to taxes, and those laws change just as frequently as the federal tax laws.  While being “faster” is definitely a perk technology can offer tax professionals, Kelly and Jerry also talk about how smart use of technology can help professionals spend more time with clients and less time worrying about data entry.  More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned:Kelly's Website – http://www.taxgirl.com/ (Taxgirl) Jerry's Bloomber Tax Article --...

Michael Jackson's death on June 25th 2009 shocked the world. And the legal drama that followed shocked many tax attorneys. At the time of his death, Jackson was clearly worth millions, but the exact value of his estate was unclear. The matter eventually ended up in court with a ruling that Michael Jackson's image and likeness, at the time of his death, were worth considerably less than the IRS estimated. How this happened, and what it means for other estates, became a big question mark in the tax world.  Calculating the value of someone's intellectual property at the time of their death is a complex process. Why was Michael Jackson's image and likeness valued so much lower than the IRS estimated? On today's episode of the Taxgirl podcast, Kelly is joined by Scott Weingust and Aaron Stumpf from Stout to talk about intellectual property and estate valuation upon death. Stout is a global investment bank and advisory firm specializing in corporate finance, valuation, financial disputes, and investigations. Scott is the leader of Intellectual Property Valuation Practice at Stout; he has over 20 years of experience providing consulting services to corporations, law firms, universities, and investment firms. Aaron is a Managing Director in the Valuation Advisory Group. Aaron co-leads Stout's trust and estate valuation practice. Listen to Kelly, Scott, and Aaron talk about intellectual property and taxes: Why did the IRS take their infamous position on Michael Jackson's estate after his death, and why has it become such a notorious case in the tax world? When it comes to valuation, it's perfectly normal to see some disagreements. But how can there be such huge gaps in valuation expectations in the case of Michael Jackson, and what factors may have played into those discrepancies? From the perspective of the IRS, how much of a factor does timing play in valuation? In the tax world, how does one value an image of a person, and the right to use someone's likeness? How do Scott and Aaron describe the “cash flow model?” What kinds of factors go into the valuation of image and likeness? Looking at this kind of image and likeness valuation (in the example of Michael Jackson and promotional opportunities), are professionals more interested in analyzing the value over time or the present value of that individual's image and likeness? Where does that number come from as of the date of an individual's death? What's the difference between valuing the asset that actually existed upon date-of-death versus valuing the projected opportunity or monetization of what's possible for a given image and likeness going forward? What kind of evidence or modeling would carry a lot of weight in court in the case of valuation? How did those items impact Michael Jackson's estate case? When looking at valuation of known factors, like stocks, for example, there are very specific rules about timing as far as averages and formulas go. Would you have a similar conversation about a person's image regarding current events that may affect their estate or image? How similar are these conversations when it comes to sports and athlete's reputations or performances? How often are professional athletes' valuations revisited? What happens when it comes to art or manuscripts or other intellectual property; how are unique assets valued and which specialists are called in for the job? What words of advice do Scott and Aaron have for tax professionals to help find those experts when needed? Where do estate valuation cases intersect with inheritances? Do these issues get sticky when it comes to unique assets like unreleased assets or family heirlooms like gems or art? More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and

In 2017, the Bureau of Labor Statistics found that over 36% of Americans are a part of "the gig economy," a dramatic increase from 2-4% in 2005. This is the most recent data available and does not account for pandemic numbers. Those jobs aren't just paid differently, there are different tax consequences too, from Form 1099 reporting requirements to paying self-employment taxes. Contractor and freelancer taxes can feel complex, so how do you sort it all out for your unique circumstances? Self-employment taxes don't have to be intimidating. In today's episode of the Taxgirl podcast, Kelly is joined by Sagar Shahagar Shah to sort out what it means to be part of the gig economy. Sagar is a CPA and the managing partner at his firm, as well as the managing member of his real estate investment fund. Prior to opening his firm, Sagar worked for KPMG. Now, many of the businesses Sagar engages with and consults with are smaller businesses and startups in the greater New York area. He regularly posts tax tips on his Instagram https://www.instagram.com/sagarshah530 (@sagarshah530). Listen to Kelly and Sagar talk about the gig economy and freelancer taxes:There's been quite a shift from the "traditional worker." Sagar talks about IT professionals becoming contractors, people driving for Uber, or even making money as a TikTok creator. However, not everyone is prepared for the tax bill that comes along with the life of a freelancer. Kelly shares how she's seen all sides of the equation herself, from years as a full-time freelancer to a full-time employee to years where she's blended the two together. What kind of advice does Sagar give to folks to help them navigate all the complicated tax details? Whether or not your freelance work is something you think you'll do forever, Sagar says he always advises getting some kind of legal structure in place, like an LLC. And further, freelancers and contractors should make an effort to keep business finances and transactions in a separate bank account.  How should freelancers organize their finances and bookkeeping? How can they keep records separate and easy to sort and access? Is it worth hiring outside help? How do you know which type of entity or incorporation is right for you, and which factors play a part in making that choice? Kelly and Sagar say "pay attention to the rules" and not just the internet buzz that you've seen floating around various articles or TikTok videos. What's going on with the home office deduction, can freelancers still take advantage of it? What other areas do contractors and freelancers often miss in their deduction reporting? All about self-employment taxes and how to plan ahead: What are Sagar's tips for figuring out how to put away money and figure out all the details about planning for taxes? What are the best ways to track expenses and keep track of tax deductions? From photos of receipts to apps and tracking software, it's all a matter of organization. Practice keeping good records from day one, especially when you spend cash. Specific to real estate partnerships, what advice does Sagar have for both investors and flippers for structuring and managing the partnerships? At one point does your gig become your job, and what are those breakpoints when someone might need to hire more help or think about a different structure? The key is to build from a strong foundation in the beginning to make sure you set yourself up for ease and success in the long term.  More about Kelly:Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them. You can find out more about Kelly https://www.taxgirl.com/about-taxgirl/ (here) and you can follow her on...

As we come out of the pandemic, many taxpayers find that they are not in the same financial situation as they were before. Some lost jobs or businesses, while others took on extra debt. Many of the expenses, from healthcare to mortgage payments, remained on the table, even if they were delayed or deferred. Now that we seem to be turning a corner, it's time to talk about paying down debt, saving money, and planning next steps. In the wake of a global pandemic, changing your money management strategy can feel daunting. Today's guest is an expert in financial psychology and teaches financial literacy.   On today's episode of the Taxgirl podcast, Kelly is joined by Jacquette Timmons to chat about how we can change our mindset and decision-making around money. Jacquette focuses on the “human side” of money in the field of financial psychology. As a financial behaviorist, she believes “you don't manage money, you manage your choices around money.” On top of being an author and frequent blogger, Jacquette is also the creator of Pricing Made Human, and The Comfort Circle, a dinner series where she hosts sessions about money, business, psychology, and life, over food and wine. She is also the host of the podcast More Than Money. Listen to Kelly and Jacquette talk about money management and financial literacy: Debt, child tax credit, and financial obligations in the wake of the pandemic: how can families have confidence in their money management during the rest of 2021 and beyond? What should people think about when they're getting an additional check this year with the child tax credit? There's a lot of judgmental attitudes out there based on how folks talk about their money or spend their money. How can tax and finance professionals work to further understand financial psychology, without placing judgment on those families for the way they spend? What keeps people from talking about money when there's sometimes a stigma around certain spending patterns? Jacquette talks about how financial literacy and decision making are like muscles, and it takes practice and openness to find a healthy balance. Jacquette says it's important to have “a willingness to experiment” with the way you handle your money and finances, but that can be difficult when you're deeply overwhelmed by your financial circumstances. How can you work on shifting your mindset toward money management during times of financial stress? Small and consistent changes can have a “profound” impact on both results and the new habits you're creating around your finances. It doesn't happen overnight, and a lot of the changes happen in the mind; practice working on small, incremental changes and focus on the long term to flex your financial psychology knowledge. What is the harm with the popularized “coffee” analogy around saving money? Kelly and Jacquette discuss how restrictive examples like this can be, and what some more useful examples would be for making many small investments over time. What's the best strategy for paying off debt? Jacquette says to work on paying down a little at a time with consistency, and paying off the smallest sum first, even if it sounds counterintuitive. At the same time, she suggests investing or saving a small amount every month at the same time to see a bit of growth while you're paying off debt. Something that comes up often in talks of financial literacy is the idea of prioritizing debt. If you owe five different creditors, where do you start if, hypothetically, every sum was equal? Jacquette says to list everything out by category: loans, tax debt, mortgage or car, credit debt, etc. And then, she explains how to sort those debts into her “debt matrix.” In the lives of families or the health of small businesses, in many cases finances are tighter than they were before the pandemic. Kelly and Jacquette discuss how this can have an impact psychologically, and how to encourage people to seek out help to talk about money in a more healthy way.  Hopefully the events and conflation of 2020 won't come back any time soon, but Jacquette reminds listeners that there will be another crisis eventually. How can folks prepare and learn as much as they can to be better equipped down the road? What's the difference between financial intimacy and financial transparency? How do they both fit into financial psychology and money management? Jacquette explains what they both are, why they're important, and how to bring both into your daily life. As a culture, we crave these financial conversations to be comfortable and “easeful.” However, Jacquette suggests that's something we should work on as a community, and instead embrace any discomfort in exchange for financial transparency and intimacy.  What are Jacquette's tips for listeners for becoming more transparent and intimate about these financial literacy conversations? Get comfortable with the idea of having questions, not knowing everything, and learning something new outside your wheelhouse. Then, get specific on the questions you have. Who is the ideal “team” of finance professionals that people should surround themselves with and have in their corner? Jacquette says everybody should have a CPA, and an attorney, and maybe a fiduciary financial professional to manage their money.   More about Kelly Phillips Erb:   Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlFollow Jacquette's -- Instagram Jacquette's Website -- The Financial Wheel

Earlier this month, ProPublica made waves when it published what it said was verified IRS information showing that billionaires, like Jeff Bezos and Warren Buffett, pay little in income tax compared to their massive wealth. ProPublica described the info as “an unprecedented look inside the financial lives of America's titans.” The article caused quite a stir, both because of how they got the data and the larger discussion regarding wealth and taxes. Recent discussions of taxing the rich or even proposing a wealth tax have sparked plenty of philosophical conversations-- but what would that realistically look like for America's uber-wealthy?   On today's episode of the Taxgirl podcast, Kelly is joined by Steve Rosenthal to chat about tax and wealth and how they intersect. Steve is a senior fellow in the Urban-Brookings Tax Policy Center at the Urban Institute, where he researches, speaks, and writes on a range of federal income tax issues, with a particular focus on business taxes. In 2013, he also was the staff director of the DC Tax Revision Commission.   Before joining Urban, Rosenthal practiced tax law in Washington, DC, for over 25 years, most recently as a partner at Ropes and Gray. He was a legislation counsel with the Joint Committee on Taxation, where he helped draft tax rules for financial institutions, financial products, capital gains, and related areas. He is the former chair of the Taxation Section of the District of Columbia Bar Association.   Listen to Kelly and Steve talk about billionaires and taxes: The ProPublica piece mentioned has been criticized for supposedly conflating wealth with income. Steve shares the difference between earned income and unearned income, and why we tax them differently. Simply: income tax only taxes income, not wealth. We often assume that billionaires and millionaires are in the highest tax bracket, but that's not always the case. Income is the basis of tax liability in the American system, so wealth without income is not taxed as heavily. In 2007, Jeff Bezos famously said he paid no income tax, even though Amazon stock more than doubled in the same year. Steve says about the 16th amendment, “We have an income tax, not a wealth tax.” How do these tax principles apply to all taxpayers? Kelly and Steve discuss taxable events and how investments like stocks and real estate aren't considered taxable income until those assets are sold. What the Biden Proposal says about gains-at-death for the mega wealthy, and what the threshold really is. As a W-2 earner, all income is reported to the IRS, and many of these folks are not reliant on investments or asset growth for their wealth. But the wealthy are usually not reliant on a wage or salary. How are investment sales taxed differently than income? What are the arguments that the tax system isn't “fair,” versus the arguments that it is fair? Should the wealthy be taxed more heavily? Would changing the top tax rate alter how much the uber wealthy would realistically pay in overall taxes? In the philosophical discussion of whether billionaires should be taxed more, what would that even look like? There is so much opportunity in the U.S. for financial success, although recently wealth inequality has been “exacerbated.” What would happen to dynastic wealth if assets were taxed upon death? The 25 richest Americans are collectively worth over $1 Trillion. It would take over 14 million working class Americans to match that kind of wealth. Does taxing appreciated assets target small business and upper middle class more than it does the billionaires? The top 1% of Americans own 50% of the stock market. Most Americans would identify themselves as middle class, and a lot of folks don't have an abundance of assets. Addressing wealth inequality is complicated with the way the tax code sits right now. Does Steve think the ProPublica story helped or harmed the odds of Biden's proposal going through? What would the next steps potentially look like for the proposal?   More about Kelly Phillips Erb:   Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlSteve's Twitter -- stevertax

What did you do in 2020 to make a change for the better? Last year, companies were asked to be accountable and actionable about their diversity and inclusion efforts. The results have been mixed. As Derrick Coleman of Creative Financial Staffing has written, “Improving diversity at an organization does not happen overnight. It will take time and effort for companies to make progress and begin building a more diverse workplace.”  Young professionals and recent grads are eager to see themselves represented in a company's leadership. Diversity and inclusion initiatives are helping to reshape representation across the accounting world.   On today's episode of the Taxgirl podcast, Kelly is joined by Derrick Coleman to talk about how a diverse workforce is good for both the culture and the bottom line of an organization. Derrick is the Managing Director for Creative Financial Staffing of Los Angeles, where he serves as a practiced leader of GHJ's recruiting division. CFS specializes in the placement of accounting and finance professionals into temporary and permanent positions across a broad range of industries.   Listen to Kelly and Derrick talk about companies' diversity and inclusion efforts in a post-pandemic world: Why is it important to have diversity in the workplace, especially in the world of tax and finance?  Research shows that a diverse workforce is more profitable at the end of the day, why don't we see more companies making more of an effort to improve right now? The tax and accounting fields are notoriously resistant to change. Derrick says education is key; companies need to start having open dialogues about these topics, and really listen to their staff. As a young professional new to the workforce, there's such an advantage to seeing yourself and your identity represented in your field. Derrick shares how companies can begin to make representation more of a priority.  When hiring, how can professionals learn to look beyond their internal biases, from sharing an alma mater with an applicant, to tackling race and gender biases? Search engines, technology, and online recruiting software have already widened the field and can help companies cast a broader net when seeking to hire. But how can firms teach their staff to overcome their biases when it comes to interviews and offers of employment? Derrick encourages teams to go through mandatory unconscious bias training, with an emphasis on retention just as much as recruitment. He says firms have to make the effort to mentor and develop diverse professionals on a daily basis, long after they've recruited them to the team. The demographics numbers regarding who is graduating versus who is managing teams do not match up at all. In other words, it can be hard for new grads to find an influential mentor in their field that looks like them.  Diversity and inclusion commitments start with the leadership of the company, Derrick says. And it's up to the leadership teams to keep the DEI strategy at high priority, and to assign mentors and sponsors throughout their ranks and across all demographics.  How can staff members practice being supportive allies once new diverse employees are in place, without putting the pressure onto that new staff member to educate the rest of the team? What are Derrick's recommended resources for companies just getting started with putting diversity and inclusion initiatives into place? How can staff members work on speaking up on behalf of creating more diversity equity and inclusion efforts, without causing accidental harm or offense in the meantime? Derrick says that everyone will make mistakes along the way; it's important to create a safe space and stay dedicated to your own further education into the subject. Where does Derrick see diversity and inclusion initiatives going in the future, and how can companies keep expanding upon them for a more diverse and inclusive workplace environment?   More about Kelly Phillips Erb:   Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlDerrick's Website -- CF StaffingDerrick's Team -- GHJ Advisors

The current G20 countries account for more than 80% of the world's GDP, 75% of global trade, and 60% of the world's population. This summer, all eyes will be on the G20 summit as they tackle issues related to the global minimum corporate tax and profit reallocation of multinational enterprises. In early June, members of the G7 reached an agreement that would establish a global minimum tax rate of at least 15% on multinational corporations. The intent of the deal is to stop the so-called “race to the bottom” in the international tax corporate world. Now, the G20 will meet and discuss these issues.   A global minimum tax rate would impact some of the world's largest multinational corporations, and the G20 countries are set to discuss the proposed rate in July.   On today's episode of the Taxgirl podcast, Kelly is joined by Mimi Song to comb through all the details about the upcoming G20 summit. As Chief Economist at CrossBorder Solutions, Mimi is responsible for managing client relationships and ensuring the successful completion of all work. At the original iteration, she served as Vice President, Professional Services. Following the sale to Thomson Reuters, Mimi was the Vice President at Duff & Phelps and served as the Head of Transfer Pricing at the Bank of Tokyo-Mitsubishi UFJ. Listen to Kelly and Mimi talk about G20 countries' conversations regarding a global minimum corporate tax: What tax professionals will be talking about in regards to the upcoming G20 summit, and why it's important.  How G20 nations are coming together to create a more fair tax environment. When the G20 meets in July, they will primarily be looking at the details for the global minimum corporate tax proposed by the G7 in June. Is there any dissent between the world's nations about approving a global minimum tax rate? How the concept of “tax morality” might play into the G20 conversations on the horizon. The weight that tech giants like Facebook, Amazon, and Apple can carry in conversations about minimum tax rates.  Mimi estimates over 100 multinational corporations would be substantially affected by the proposed minimum tax rate. A few countries, like France, have recently rolled out some controversial unilateral digital services tax, how might those digital taxes be impacted in the wake of G20 decisions? Some multinational companies have established “headquarters” in other nations to take advantage of lower tax rates, so there may be some movement upon the establishment of a global corporate tax rate. Mimi shares her insight about why these conversations are happening now. Have they been on the horizon for a while, or do the G20 feel like a global tax rate is particularly timely? If the global minimum tax rate is approved by the G20 in July, how quickly would things move and change afterwards? Mimi expects some movement by April 2023, as stated in the proposal, but there will be a fair bit of complexity along the way. Different jurisdictions are seeking different “carve-outs” and exceptions for companies; Mimi says those kinds of conversations will likely be among the most heated during the G20. Corporate taxpayers love certainty. How should they be preparing now for any potential changes to come from a minimum tax rate? Some companies have been making noise about how a global minimum will “cost them more,” which could lead to trickling down to consumers. Should taxpayers be worried about paying more for Netflix next year, for example? More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlConnect with Mimi -- CrossBorders Solutions

In June, Taxgirl wrote a story referencing a bad tax take on TikTok. It was a case of tax advice going viral for all the wrong reasons, and a lack of understanding of tax basics. Shortly after publishing the story, Taxgirl received a message from Duke Moore who wrote, “TikTok generally gets a bad rep for misinformation, but I, on the other hand, use the platform to educate others about taxes in a concise and entertaining manner.” Misinformation can spread easily on social media, so tax professionals are using their viral platforms to educate users about tax basics.   On today's episode of the Taxgirl podcast, Kelly is joined by Duke Moore to talk about using social media to share tax information in a helpful, educational, and positive way. Duke is an Enrolled Agent in Dallas, Texas, who shares his passion for helping others navigate their taxes on TikTok. His account currently has a following of 2.7 million, and is growing every day. Listen to Kelly and Duke talk about tax basics and social media: TikTok is one of the best ways to reach a huge audience; it's a huge platform. While it can be great for entertainment, Duke says it's also a great space for sharing educational tax information. How did Duke start his TikTok platform, and how did he grow his audience so successfully? He had never thought about posting TikTok videos for his business until he heard others share how the platform helped their businesses grow.  What are the challenges that come with TikTok's massive reach and engagement metrics? When it comes to sensitive or technical tax information on the internet, how does Duke funnel his audience members to more secure, private space for further tax advice? What does Duke's content planning strategy look like? Some of his videos are spontaneous, some are videos on a trending topic, and some are answering questions his audience commonly asks. How does Duke balance his information delivery to include a general audience, while leaving room for nuance, exceptions, and special cases? A TikTok video is only 60 seconds long! What's the landscape of the existing community of tax professionals on TikTok? Duke shares his experience learning and gaining more information through the platform, thanks to other professionals sharing their expertise as well. Duke utilizes live video sessions on TikTok to help answer some more nuanced questions, and he says lives also boost community engagement overall.  What advice does Duke have for aspiring TikTok creators in the tax world? What would he have done differently knowing what he knows now? He says it's important to be careful with your words, and to always be specific and never overgeneralize. In regards to spreading misinformation on TikTok, how does Duke approach criticisms of his videos? Duke emphasizes the importance of speaking slowly and with intention and detail, even though a TikTok video is only 60 seconds long. He even says, “You're supposed to have haters.” Does Duke often experience negative pushback and racist comments as a Black man in the tax space? Does he feel pressure to be an “example” for Black men in the tax profession? Duke says his primary goal on TikTok is to “make taxes easy to understand,” and that's the driving force behind all his content. His audience grows because he makes the topic approachable and understandable. What other platforms does Duke use? Twitter and YouTube can be challenging to gain an audience, but worth it in the long run. How does Duke balance managing his tax business and create content on his TikTok platform? TikTok helps send over 100 leads a day to his business, and he does all the admin by himself. Duke's plans for creating free education resources for small business owners and entrepreneurs that want to learn all about taxes. Is it a challenge to separate personal and business social media, especially with Duke's huge TikTok following? Duke says it's all about authenticity; he wants people to know who they're working with, so he doesn't worry about separating the two too much.  More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlDuke Moore's Social Media - TikTok | Instagram | Twitter

When it comes to tax and technology, our understanding of the implementation often ends at, “My clients upload their data to the cloud.” But there's so much more to technology in finance than just “the cloud.” There are many ways people in the tax profession can benefit from embracing today's revolutionary accounting technology. Sometimes tax professionals can be resistant to change, but embracing accounting technology doesn't have to be scary.   On today's episode of the Taxgirl podcast, Kelly is joined by Jody Padar to talk about technology and what it can bring to the tax profession. Jody was the CEO and Principal of the New Vision CPA Group, a public accounting firm based in the Chicago area, for 14 years. Now, she is Vice President of Strategy at Botkeeper. She is a highly sought-after speaker and thought leader in the tax and accounting profession. She is the author of The Radical CPA: New Rules for the Future-Ready Firm, a book that sparked a movement within the accounting profession focusing on four tenets: cloud technology, social business, value pricing, and process. She has also recently authored a new book, Botkeeper for Dummies. Listen to Kelly and Jody talk about tax and technology: Some folks in the tax profession are more resistant to change than others. What is Jody excited about in regards to today's technology? Why embracing technology, especially during tax season, benefits clients as much as it does tax professionals. How technology can help tax professionals save time and become more organized. Do machine learning and artificial intelligence threaten job security in the industry? What might a career as a tax professional look like in ten years as accounting technology continues to evolve? The impact of encouraging small and medium sized firms to learn and use new financial technology tools.  How to introduce technology into your practice with research, collaboration, and experimentation. Dealing with the feeling of “giving up” control of a task to a technology tool. How tax software can help tax professionals guide their clients to be more proactive. Tax programs can scan for outliers in decades of previous returns, preparing tax professionals and their clients for more informed financial conversations. Evolving technology in the finance world frees up young professionals from doing “grunt work” and allows them to truly begin their career in the field. Tax and accounting software is coaxing professionals to approach tax and financial statements in the context of data and projection. Do new accounting graduates have the skills they need in the changing industry? How to make all the new accounting technology feel less intimidating.  More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlJody Padar -- LinkedInJody Padar -- Twitter

There are important tax changes coming this summer for families. Specifically, the child tax credit will enable families to get advanced payments. This is a change from prior years where the credit was calculated and paid out at tax time. The credit is not a new credit, it's an enhanced credit as part of President Biden's American Rescue Plan, signed into law in March 2021.  The purpose of the child tax credit is to help lift families out of poverty, but like many tax provisions, it can be complicated.   On today's episode of the Taxgirl podcast, Kelly is joined by Elaine Maag and Professor Francine Lipman to explain the 2021 tax changes for families, especially the child tax credit. Elaine is a Principal Research Associate at the Brookings Institution Tax Policy Center, where she studies income support programs with a particular interest in how tax policy supports low and middle income families. She is a member of The Tax Policy and Poverty Research Network, and a member of The National Academy's Insurance Panel on assured income. Professor Lipman teaches tax courses at the Boyd School of Law, UNLV. She has previous experience as an accountant, a lawyer, a teacher, and a scholar. She is an elected member of the American Law Institute, The American College of Tax Council, and The American Bar Foundation. Professor Lipman is also an Editor and former Committee Chair for the tax section of The American Bar Association. Listen to Kelly, Elaine, and Professor Lipman talk about the child tax credit: What is new about the child tax credit, how is it different from the credit we know and love from years prior? The margin of increase in credit payments per child. How will this change affect families that don't traditionally file a tax return? How to get in touch with the IRS regarding the change via toll free phone line or online portal. In terms of the new advance monthly payments, do we know what will happen if those payments don't start even when you're entitled to them? The IRS will be creating a separate user portal to update personal information. Does the IRS know how it will be handling disputes regarding who gets to claim dependents with this change? If your income is under $40K annually and you're a single parent, you're probably within the safe harbor.  How many of these changes apply only for 2021, and which ones are here to stay? In the wake of the pandemic, why are some of these 2021 tax changes only temporary? There's been a lot of criticism on the tax professional side about prioritization of projects and the timeline that payments are delivered. How is the IRS encouraging low income families and serial non-filers to begin filing this year? In comparison to the stimulus check program, how is the child tax credit different and where does it show up on a tax return? The credit will be paid half in advance and then reconciled on the return, what sources are recommended for learning more information about the tax credit? More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlFAQ's from the IRS -- Child Tax CreditElaine - Tax Policy CenterProfessor Lipman's Bio -- UNLV

From Bill and Melinda Gates, to Ben Affleck and JLO, we love the gossip surrounding celebrity weddings, almost-weddings, and divorces. But often, the real life consequences of those weddings, almost-weddings, and divorces are anything but Hollywood glam.  Matrimonial Law Professionals Know Family is Complicated, so it's Best to Be Prepared When it Comes to Marriage Finances   On today's episode of the Taxgirl podcast, Kelly is joined by Mela Garber to discuss marriage, taxes, and estates. Mela is a Tax Principal at Anchin. She has extensive experience handling all aspects of taxation and planning for high networth families, their trusts, and estates. As Tax Leader of Anchin Private Client and Leader of Anchin's Trust & Estates Services and Matrimonial Advisory Groups, Mela assists women in matrimonial issues, working with divorcees and widows, helping them navigate through their new financial lives. Listen to Kelly and Mela talk about divorce and finances: A lot of people are talking about divorce right now because of Bill and Melinda Gates, but what kind of issues do you commonly see with couples initiating a divorce? What are some practical planning tips to consider during divorce, such as selling a house or divvying up retirement accounts? How to gather a team of professionals to help through divorce proceedings. Thinking about what comes next, and what happens in the case of remarriages? How does Mela recommend working out trusts and family finances amidst remarriages and blended families? When setting up trusts, should there be an independent trustee? Dealing with pushback when clients don't want to name an independent trustee. Planning wisely and being prepared for financial conflict that may arise years down the road. Having conversations with clients about how to determine what is the appropriate amount of money needed to maintain a certain lifestyle after divorce. How often should estate planning documents be reviewed? Why it's important to stay on top of proposed bills that would change how assets could be taxed after the death of a family member. Does Mela advise increased lifetime giving among blended families for estate planning? What trends are Mela watching that people should be more aware of? More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlMela's Firm -- AnchinMela's LinkedIn -- LinkedIn

According to the Financial and Accounting Women's Alliance, women represent 50% of all full time staff at CPA firms, but make up just 27% of partners and principals. Even though more and more women are entering the tax and accounting professions, women are still vastly underrepresented in management and leadership roles. What will it take to buck that trend? There are many women in finance these days, but there's still a huge gap in the amount of women in leadership roles. On today's episode of the Taxgirl podcast, Kelly is joined by Kathryn Kaminsky to discuss the gap of women in tax and accounting leadership. Kathryn is Vice Chair and Trust Solutions Co-Leader at PwC. In this role, she leads the combined Tax and Assurance business. She is a partner with over 25 years of experience serving the financial services industry. Kathryn was recognized in Crain's 2019 list of Notable Women in Accounting and Consulting. One of her chief focuses in her role is the advancement of female and diverse professionals in the firm, and she regularly speaks at Universities, conferences, and PwC functions regarding career development and women in leadership. Listen to Kelly and Kathryn talk about women in finance in leadership roles: The power of opening up to colleagues about your life and how doing so can form stronger bonds. Building strong relationships in business requires empathy and compassion. Many women feel like they're unable to ask for help in their work environment. The importance of providing yourself “a moment to breathe” outside of being everyone's counselor.  Balancing work and family time can look different for everyone; there shouldn't be any judgment. What advice would Kathryn give to younger women about finding a mentor in their workplace? Nurturing relationships with your allies and mentors at work. Kathryn's experience taking tax and accounting classes after graduating with a History degree during undergrad. The joy of truly loving the work and client relationships in tax and accounting. Did Kathryn feel any pushback as a woman in leadership? Whether women and POC in leadership roles feel like they have to be the “voice” of their entire demographic. How are Diversity and Inclusion initiatives progressing and evolving? Tax and accounting firms have traditionally been resistant to change; does that create additional hurdles for Diversity and Inclusion programming? Kathryn's hope for PwC and women in finance and accounting in the future? The impact of sharing support and experiences with family. Normalizing letting the next generations see that there are many paths to success.   More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlKathryn S Kaminsky -- LinkedIn

All too often, wealth planners focus only on the dollars. From annual monetary gifts to conditional clauses in inheritance documents, the subject of family wealth planning isn't always the most flexible or the most broadly accessible for the everyday American family. Richard and Claudia explain the importance of factoring in the family's “well-being” when considering generational wealth and inheritance tax. With added flexibility, innovative wealth planning can benefit every family, not just the uber wealthy.   On today's episode of the Taxgirl podcast, Kelly is joined by Claudia Tordini and Richard S. Franklin to discuss a more modern approach to inheritance planning. Claudia draws on her background in business, art, and creativity to provide coaching and consult services on family wealth and inheritance planning, leadership and team building, and creativity and innovation. Richard has practiced law as a trust and estates attorney for 30 years. His experience in working with wealthy families has been instrumental in informing his thinking and his work on behalf of Appanage on the broader subject of family wealth and inheritance tax conversations. Their company, Appanage, supports wealth and inheritance planning for families across multiple generations. Listen to Kelly, Claudia, and Richard talk about family wealth planning: How should planning be different from just looking at black and white dollar amounts?  Why it's important to incorporate your family's well-being into your planning, on a qualitative level, not just quantitative. In terms of estate planning, how do you talk about things that are not dollar-driven to clients? With lengthening life expectancies, are clients open to handing over their “control” and wealth to younger generations earlier? Is there often pushback from clients about getting on board with earlier inheritance planning? Can these kinds of programs scale? How a transfer of wealth that's very targeted can significantly improve inheritors' wellbeing earlier in life.  Why inheritance planning with well-being theory applies to every family, and not just the uber wealthy. Has the pandemic seemed to change the way people approach wealth planning beyond life expectancy?  Why there's a big focus on making gifts right now.  Rather than the classic advice of writing a check in December, how should clients open the conversation with intention regarding annual gifts with their family? Removing any negative or conditional language from wills according to recent research findings.  How philanthropy can factor into wellbeing and positive wealth planning. Estate planning has not always been about flexibility; does added flexibility improve the wellbeing of family members?  The impact of asking inheritor family members on a scale of 1 to 10, how happy they are in their lives. What it means to have a “wellbeing trust.” More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – TaxgirlRichard & Claudia's Website - Appanage Group

Transfer pricing may be one of the most talked-about and least understood tax topics right now. The underlying concept is simple: it's the method for pricing transactions between related parties. But what qualifies as “related parties” and how those transactions are valued have become increasingly complicated in a more global and more digital world. Companies facing international taxation are navigating transfer pricing in an ever-changing business landscape. On today's episode of the Taxgirl podcast, Kelly is joined by Andrew O'Brien-Penney and Tamara Levin to tackle the intricacies of transfer pricing. Andrew is the Director of Economics at Baker McKenzie LLC in Chicago. He has experience in transfer pricing and valuation matters, assisting major multinational companies in advising clients and audit and dispute resolution situations, supply chain restructuring, planning, advance pricing agreements (APAs), and intellectual property migration opportunities. Tamara is a partner at Baker McKenzie's Palo Alto Tax Practice Group. She advises mostly tech-based companies on transfer pricing and tax planning matters, including structuring and implementing international operations, cross-border transactions, and post-acquisition integrations. Andrew and Tamara recently co-authored a special report, Digital Revolution: Transfer Pricing on the Global Tax Battlefield (link below), together with other members of Baker McKenzie's global tax practice. In this podcast episode, they discuss some of the details of that report along with their experiences advising multinational companies. Listen to Kelly, Andrew, and Tamara talk about the details of transfer pricing: What is transfer pricing and why is it being talked about so much right now? What happens as global companies develop new digital intellectual property The extent to which multinational companies deal with transfer pricing How machine learning and artificial intelligence factor into valuation matters Advising multinational companies with different views on jurisdiction or location How to document existing international taxation frameworks to support new kinds of data How the EU is tackling transfer pricing with working groups Changes in the audit space and where tax authorities are targeting most How has the pandemic changed things in the transfer pricing world? Does widespread remote work change or influence the transfer pricing space? Projecting changes and technological adaptations to come in the next few years How much do you try to learn about how multinational companies conduct their business? Conducting functional interviews as tax professionals and how they inform tax advice A typical day in the life of transfer pricing tax professionals How are clients feeling about increased transparency and public reporting?  More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly's Website – Taxgirl Baker McKenzie - Website A Brave New World: Transfer Pricing for Digital Transformation - Bloomberg Insights Digital Revolution: Transfer Pricing on the Global Tax Battlefield - Bloomberg Tax International Journal (subscription required)

Many tax accounting firms were busy in 2020 despite the challenges of the pandemic, but not all of them experienced record-breaking positive growth. By staying on top of new technology and offering online tax services with the best tax software, preparers spend more time with clients, and taxpayers have a more streamlined, stress-free filing season.  A virtual tax preparation service can be a better experience for both clients and tax professionals On today’s episode of the Taxgirl podcast, Kelly is joined by Donald Nelson, EA, Senior Partner and Tax Advisor at DBN Tax. After getting his accounting degree, Donald cut his teeth in the private sector by facilitating busy filing seasons at the family practice his parents started together. After a few years as an auditor for the IRS, he took over his parents’ family practice firm in 2005, and has grown it into DBN Tax: a thriving tax accounting firm with three partners, three locations, and clients all over the country. The firm grew by 35% in 2020 during the pandemic by taking advantage of what he terms “a digital revolution,” He now strongly believes every tax professional should be running online tax services and utilizing the best tax software.  Listen to Kelly and Donald talk about facilitating online tax services: How to generate growth for the firm when business is hectic Adapting to changing technology with enthusiasm and grace Does spending more to make more apply to tax accountants? How to decide whether to invest in tax projection software Choosing the best tax software for your firm’s process Are clients bothered by increasingly automated business processes?  Why embracing technology during the pandemic helped grow a virtual tax practice How increased filing automation gives you more personal time with clients Is having a brick-and-mortar office still necessary while running online tax services? How to account for situations that won’t accept an e-file  What if technology changes and documents in the cloud can’t be read?  The first steps to start a more virtual tax practice   More about Kelly Phillips Erb: Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – TaxgirlDonald’s Firm -- WebsitePace Setter Tax -- Website

Over 9 million Americans live outside of the United States. Sometimes, living outside of the United States can be advantageous on your taxes. Under the Foreign Earned Income Exclusion, taxpayers may be able to exclude income from their United States taxes. The FEIE can make living and working remotely abroad a tax-free experience Joining Kelly on this episode of the Taxgirl podcast is Allyson Lindsey, a managing partner at Bright Tax. Allyson has experience advising international clients with a wide variety of compliance issues, making her the perfect partner to talk about the FEIE. Kelly and Allyson break down the Foreign Earned Income Exclusion -- from how someone can qualify and the potential tax savings all the way to finding and vetting a qualified tax professional capable of helping you utilize the FEIE. Listen to Kelly and Allyson talk about the Foreign Earned Income Exclusion: What the Foreign Earned Income Exclusion actually covers How to determine if you qualify for the FEIE The physical presence test Can the FEIE be prorated? What happens if you haven’t met the 330-day threshold What you need to watch out for and when you need to start thinking about it How housing costs apply with the Foreign Earned Income Exclusion Do you have to prove you paid taxes in another country? Is there an increased risk for getting audited The stigma that people that travel abroad are rich The importance of talking with a tax professional before moving abroad The FBAR How can you find a tax professional experienced with the FEIE? More about Kelly Phillips Erb: Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – Taxgirl Bright Tax - Website Bright Tax - Instagram Bright Tax - Facebook

Despite the inroads women have made in the tax profession, it’s still a very male-dominated profession, especially at the top. In 2019, only about 20% of all equity partners were female, according to the National Association of Women Lawyers. Thankfully, it’s an issue that is starting to garner more discussion as more people recognize the lack of high-ranking women in business. It can be tough for women in business Industry leader Kate Barton -- the global vice chair at EY -- joins Kelly on this episode of the Taxgirl podcast. Kate and Kelly talk about their experiences as women in business, especially in high-level positions and where the industry is heading. Listen to Kelly and Kate talk about women in business: Kate’s background and experience What drew Kate to international taxes The politics of making partner Will travel slow down after the coronavirus pandemic? Problems with international customers due to differing customs The future of the tax profession  More about Kelly Phillips Erb: Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – Taxgirl Kate Barton - LinkedIn Kate Barton - Twitter

As society continues to do more online, data security is more important than ever before. That goes for your taxes and the IRS as well. In their annual report, the IRS identified $2.3 billion in tax fraud schemes in 2020. With the 2021 tax season continuing, it’s something businesses and individuals need to pay attention to. Are you protected from data security issues? On this episode of the Taxgirl podcast, Kelly is joined by Robert Capps, the vice president of emerging technologies for NuData -- a Mastercard company. Kelly and Robert discuss the increasing importance of data security, as well as what both businesses and consumers need to know to protect themselves and others. From data breaches and the Dark Web to how people can best monitor the internet for their stolen data, this is a must-listen episode. Listen to Kelly and Robert talk about data security: How legitimate businesses can add to fraud Data breaches How businesses can find out their state’s rules on data privacy and security How consumers can find out when their data is online The dark web Data disclosure notifications How people can protect their data 2 Factor Authentication IRS scam calls More about Kelly Phillips Erb: Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – Taxgirl Robert Capps - Twitter New Data Security - Website

The evolution of cryptocurrency and the blockchains that power it has taken yet another step forward with the creation of NFTs or non-fungible tokens. NFTs have been in the news quite a lot lately, garnering support from some of the biggest names in art, sports, and technology. However, with NFT marketplaces come potential tax liabilities. NFTs aren’t just for art anymore On this episode of the Taxgirl podcast, Kelly is joined by Ben Weiss, the CEO of Coinflip -- the world’s leading Bitcoin ATM operator -- to talk about NFTs. Kelly and Ben discuss NFT meaning, how big brands like Nike are beginning to use NFTs, the anonymity of a blockchain, regulations and tax liabilities users could face, and the future of NFTs. Listen to Kelly and Ben talk about NFTs: What is an NFT NFT meaning Establishing a value for an NFT Mark Cuban’s role with NFTs Nike using the blockchain to verify authentic sneakers Tennis player Oleksandra Olinynykova selling her arm as an NFT Residual payments on NFTs Automated NFT marketplace tracking for taxes Tax considerations of using an NFT marketplace The anonymity of the blockchain The percentage of cryptocurrency tied to elicit activity Regulations businesses like Coinflip face The future of NFTs More about Kelly Phillips Erb: Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – Taxgirl Coinflip - Website Ben Weiss - Instagram Ben Weiss - Twitter

If innovation is instrumental in moving the country forward, then the R&D tax credit is helping to pave the way. While you might think you’ll need lab coats and microscopes to qualify, the R&D tax credit is broad enough to fit a variety of industries. And with more than $18 billion in research and tax credits reported in 2019, it’s clear there are potentially huge savings to be had. Don’t miss out on the massive R&D tax credit To talk more about the specifics of the R&D tax credit and how it works, Kelly is joined by Ari Palmer-Salafia, the CEO and founder of TaxTaker. Ari and her company have helped guide innovative businesses to these massive tax credits, giving her the insight on who qualifies, how the IRS embraces it, and what can be deducted. Listen to Kelly and Ari talk about the R&D tax credit: What is an R&D tax credit? How broad the tax credit actually is The various industries that are claiming the research and development tax credit What expenses are included in the R&D tax credit Why are more companies not taking advantage of the tax credit? How to know if you qualify for the R&D tax credit? How to file for the research and development tax credit What TaxTaker offers businesses Is the IRS embracing the tax credit? How the research and development tax credit works on your taxes More about Kelly Phillips Erb: Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – Taxgirl TaxTaker - Website TaxTaker - Twitter

Cryptocurrency is once again making big waves in the news thanks to Bitcoin and Dogecoin riding high, Tesla accepting payment in the form of Bitcoin, and the IRS asking about it on your tax forms. But without proper guidance from the IRS, there are still plenty of questions surrounding crypto taxes and the specifics of cryptocurrency compliance.  Crypto taxes are once again a hot-button topic this tax season On this episode of the Taxgirl podcast, Kelly is joined by Wendy Walker. As the solution principal at Sovos Compliance, Wendy has helped lead the go-to-market strategy focused on growing the tax and regulatory line of business. Kelly and Wendy discuss the latest information on crypto taxes, including the IRS’ recent cryptocurrency FAQ, the Common Reporting Standard, and cryptocurrency compliance.  Listen to Kelly and Wendy talk about crypto taxes: Where to find the cryptocurrency taxes question on your tax form Cryptocurrency FAQ How many users does a cryptocurrency market like Coinbase have? Coinbase John Doe summons Concerns over what gets reported to the IRS 1099-K and 1099-B The lack of guidance on crypto taxes by the IRS What should taxpayers think about if they have cryptocurrency What records do you need to keep for your cryptocurrency taxes What is the Common Reporting Standard Expanding the Common Reporting Standard for crypto taxes What taxpayers should do about past reporting discrepancies Where to find up-to-date advice on crypto taxes and cryptocurrency compliance More about Kelly Phillips Erb: Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – Taxgirl Wendy Walker - LinkedIn Wendy Walker - Email Sovos - Website

Everyone understands the IRS is responsible for collecting taxes but those aren’t the only IRS jobs that exist. The IRS generates approximately 96% of the funding that supports the federal government’s operations, playing a massive part in everything from Homeland Security to helping disadvantaged citizens. But what is it like to work for the IRS? IRS jobs can be varied and rewarding On this episode of the Taxgirl podcast, Kelly is joined by Robin Bailey Jr., the Human Capital Officer at the IRS to discuss working for the IRS. Kelly and Robin discuss his experience working for the IRS, where you can find a wide variety of IRS jobs, and how the IRS can be a great place to work. Listen to Kelly and Robin talk about IRS jobs: Robin’s background and joining the IRS Why you should work for the IRS How the IRS helps disadvantaged youth How to find IRS jobs IRS Forward program -- What it is and the requirements How many people the IRS is looking to hire IRS jobs training Diversity and inclusion hiring practices International hiring Remote working for the IRS How the IRS is trying to be better connected to applicants throughout the hiring process IRS ambassador program Lateral moves within IRS jobs IRS orientation process What working for the IRS means More about Kelly Phillips Erb: Kelly is the creator and host of the new Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them. Links mentioned: Kelly’s Website – Taxgirl IRS jobs website