As I faucet this out on my laptop computer—a tax roundup that you simply’ll seemingly learn on a cell phone or pill—it’s straightforward to really feel like expertise has been round endlessly. Some advances have been round for many years, however a few of what we depend on every single day could also be loads youthful than you suppose.
The primary handheld mobile cell phone—a Motorola—made an look in 1973, however the first time that many Individuals noticed it in use was within the 1987 film Wall Road. Nevertheless, the primary iPhone wasn’t launched till 20 years later.
The primary laptop computer laptop—the Osborne 1—was made obtainable to the general public in 1981. However the first iPad didn’t come alongside till 2010.
And digital funds? The primary computerized teller machine (ATM) made its public debut within the U.S. in 1969, however Bitcoin didn’t seem till 2009.
It’s clear that expertise has modified—and continues to alter—how we reside and work. It’s additionally altering the tax panorama.
Taxpayers can now file and pay their tax payments from their telephones and laptops. In keeping with the IRS, practically 94% of federal earnings tax returns acquired this yr have been filed electronically.
And since cash, shares, and digital belongings will be moved round on-line within the blink of a watch, tax authorities are rethinking methods to finest body tax coverage to seize these transactions. That’s resulted in controversial new digital taxes and proposals.
It’s loads for tax practitioners to maintain up with, which is why we’ve you coated with our Insights Roundup.
Fast Numbers Trivia
How a lot did the primary laptop weigh?
(Reply is on the backside.)
With expertise impacting tax planning, compliance, and enforcement, it’s important to maintain up. From cybersecurity steerage to NFTs, right here’s what tax professionals are speaking about:
The Colonial Pipeline Co. hack—and $5 million ransom—is a stark reminder in regards to the significance of cybersecurity in enterprise. The assault additionally serves as a warning that monetary establishments aren’t the one organizations that have to be involved about safety dangers. Anne Tyler Corridor and Eric Schillinger of Corridor Advantages Regulation study what which means for fiduciaries in DOL Proffers Three-Pronged Guidance on Cybersecurity Breaches for Retirement Plans.
You possibly can study extra in regards to the significance of knowledge safety within the latest Taxgirl podcast that includes a chat with Robert Capps, vp of rising applied sciences for NuData Safety.
Tech continues to develop at a speedy tempo, however are all of those new developments right here to remain? James Creech ponders whether or not non-fungible tokens (NFTs) are fads or the following huge factor in NFTs: An Existential Question. He wonders whether or not the problems for tax practitioners are so simple as the vendor’s realized value and foundation and—if NFTs are the following huge factor—is IRS steerage coming ultimately?
You’ll find out extra about some tax implications of NFTs in a recent episode of the Taxgirl podcast with Ben Weiss, CEO of Coinflip, the world’s main Bitcoin ATM operator.
Digital taxes proceed to be a difficulty each at residence and overseas. Notably, the OECD/G20 Inclusive Framework’s two-pillar venture on the tax challenges of digitalization, typically referred to as BEPS 2.0, has been ongoing for greater than two years. In A Whole New Ballgame: The Global Tax Policy Negotiations on Pillars One and Two, Jeff VanderWolk of Squire Patton Boggs seems on the modified panorama and discusses doable outcomes.
The worldwide financial system is predicted to develop 4% in 2021. That’s some huge cash altering arms, together with vital cross-border transactions. A few of these transfers could possibly be tax-favored. Gifts of Securities, Cash by U.S. Resident to French Resident Exempt up to $11.7M primarily based on French rulings, writes Claire Guionnet Moalic, tax accomplice at Orsay Avocats Associés in Paris.
Because of the web, you may donate to a donor-advised fund (DAF) with the clicking of a button, however what then? DAFs have been criticized not too long ago for sitting on an excessive amount of cash, and efforts are afoot to place time necessities on DAF grantmaking. Jeff Hamond, former financial coverage director for Senate Majority Chief Charles Schumer (D-N.Y.) and present chief of the philanthropy follow at Van Scoyoc Associates, means that Donor-Advised Funds Are the Linchpin of Local Charitable Giving.
Expertise comes with benefits, however it has additionally contributed to a rise in vitality consumption. Till not too long ago, banks, asset managers, and different monetary establishments used to really feel faraway from the challenges of local weather change—however that could be altering. In Measuring and Reporting Financed Greenhouse Gas Emissions to Get to Net-Zero, Giel Linthorst, director at Guidehouse, highlights the expansion in membership within the Partnership for Carbon Accounting Financials’ (PCAF) international commonplace to measure and report financed emissions.
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Expertise can translate into riches: Six of the ten richest billionaires on the planet—in keeping with Forbes’ Billionaire listing—owe their wealth to expertise. However what occurs when there’s a cut up? It’s not straightforward to evaluate the worth of a surname in a divorce continuing, however treating it like property could be the reply, says Greg Bordelon, an affiliate regulation professor on the College of Maine College of Regulation. In What’s a Last Name Worth in Divorce? If It’s Gates, a Lot, Bordelon says the worth of the surname is an open query.
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Look ahead to It
Everybody loves a fantastic evaluate, however what occurs when evaluations aren’t so terrific? In a world the place on-line evaluations will be key to attracting—or shedding—potential shoppers, it’s vital to grasp when and the way to answer unfavourable evaluations.
Gina F. Rubel, Esq., Founder and CEO of Furia Rubel Communications, Inc., will share what you must find out about on-line popularity administration in a digital occasion on Might 26 at 12:00 pm EST. You possibly can listen in here, no registration required.
Your Fast Numbers Reply
ENIAC (Digital Numerical Integrator And Pc), constructed between 1943 and 1945, weighed about 30 tons.
That’s in regards to the weight of a large-sized fireplace truck, or greater than two faculty buses.
The U-shaped laptop stuffed a 1,500-square-foot room. It had 40 cupboards, every 9 toes excessive, full of 18,000 vacuum tubes, 10,000 capacitors, 6,000 switches, and 1,500 relays. Makes that year-old laptop computer really feel a little bit lighter, huh?
Unique Content material for Bloomberg Tax Subscribers
From digital promoting taxes to gross sales of on-line items and providers, international locations are altering how they tax expertise. The Bloomberg Tax and Accounting Digital Service Taxes and Other Unilateral Measures Roadmap offers a high-level abstract of digital providers taxes and different unilateral measures associated to direct taxes enacted or proposed in jurisdictions across the globe.
For added details about digital providers taxes, VAT/GST and oblique tax issues, in addition to information about digital taxes, see Bloomberg Tax & Accounting.
*Be aware: Your Bloomberg Tax login shall be required to learn these assets.
Extra Nice Tax Content material
This can be a weekend roundup of Bloomberg Tax Insights, written by practitioners and that includes professional evaluation on present points in tax follow and coverage. For a full archive of articles, browse by jurisdiction at Daily Tax Report, Daily Tax Report: State, Daily Tax Report: International, Transfer Pricing Report, and Financial Accounting.
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