Weekend Snapshots: Tax Takes Tech

Typing this on my laptop – a tax summary you’ll probably read on a mobile phone or tablet – it’s easy to think the technology has been around forever. Some advancements have been around for decades, but some of the ones we rely on every day may be much younger than you realize.

The iPhone exhibited in January 2007 at MacWorld in San Francisco.

Photographer: David Paul Morris via Getty Images.

The first portable cell phone, a Motorola, appeared in 1973, but the first time many Americans saw it in use was in the 1987 film Wall Street. However, the first iPhone didn’t come out until 20 years later.

The first laptop – the Osborne 1 – was released to the public in 1981. But the first iPad didn’t arrive until 2010.

A piece of twenty-five bitcoins.

Photographer: Tomohiro Ohsumi / Bloomberg via Getty Images

What about digital payments? The first automated teller machine (ABM) made its public debut in the United States in 1969, but Bitcoin did not appear until 2009.

It is clear that technology has changed – and continues to change – the way we live and work. It also changes the tax landscape.

Taxpayers can now file and pay their tax bills from their phones and laptops. According to the IRS, nearly 94% of federal tax returns received this year were filed electronically.

And since money, stocks, and digital assets can be moved online in the blink of an eye, tax authorities are rethinking how best to set tax policy to capture these transactions. This has resulted in controversial new taxes and digital proposals.

That’s a lot for tax professionals to follow, which is why we’ve got you covered with our information overview.

Quick numbers trivia

How much did the first computer weigh?
(The answer is at the bottom.)

Our roundup

With technology impacting tax planning, compliance and law enforcement, keeping pace is critical. From cybersecurity advice to NFTs, here’s what tax professionals are talking about:

The Colonial Pipeline Co.and a ransom of $ 5 million—Is a stark reminder of the importance of cybersecurity in business. The attack also serves as a warning that financial institutions aren’t the only organizations concerned about security risks. Anne Tyler Hall and Eric Schillinger of Hall Benefits Law discuss what this means for trustees in DOL Proffers Three-Pronged Guidance on Cybersecurity Breaches for Retirement Plans.

You can read more about the importance of data security in the latest Taxgirl podcast with a chat with Robert Capps, vice president of emerging technologies for NuData Security.

A person looks at a piece by Hoxxoh at the March opening of the NFT Superchief Gallery, a physical gallery dedicated exclusively to NFT (non-fungible tokens) artwork in New York City.

Photographer: Timothy A. Clary / AFP via Getty Images

Technology continues to develop at a rapid rate, but are all of these new developments here to stay? James Creech wonders if non-fungible tokens (NFTs) are fads or the next big thing in NFTs: an existential question. He wonders if the problems for tax professionals are as simple as the price and base realized by the seller and – if NFTs are the next big thing – will IRS advice come sooner or later?

You can read more about certain tax implications of NFTs in a Recent episode of the Taxgirl podcast with Ben Weiss, CEO of Coinflip, the world’s leading operator of Bitcoin ATMs.

Digital taxes continue to be a problem both at home and abroad. Notably, the two-pillar project of the OECD / G20 Inclusive Framework on the Tax Challenges of Digitization, sometimes referred to as BEPS 2.0, has been underway for more than two years. In A Whole New Ballgame: The Global Tax Policy Negotiations on Pillars One and Two, Squire Patton Boggs’ Jeff VanderWolk examines the changed landscape and discusses possible outcomes.

The global economy is expected to grow by 4% in 2021. A lot of money is changing hands, including significant cross-border transactions. Some of these transfers could be tax favored. Donations of securities, cash by an American resident to an exempt French resident up to $ 11.7 million on the basis of French decisions, writes Claire Guionnet Moalic, tax partner at Orsay Avocats Associés in Paris.

Thanks to the Internet, you can donate to a Donor Advised Fund (DAF) with one click, but what to do? DAF has recently been criticized for having too much money, and efforts are underway to impose time limits on the award of DAF grants. Jeff Hamond, former director of economic policy for Senate Majority Leader Charles Schumer (DN.Y.) and current philanthropic practice leader at Van Scoyoc Associates, suggests donor-advised funds are the backbone of giving local charities.

The technology has advantages, but it has also contributed to an increase in energy consumption. Until recently, banks, asset managers and other financial institutions felt remote from the challenges of climate change, but that can change. In measuring and reporting greenhouse gas emissions funded to achieve net zero, Giel Linthorst, Director of Guidehouse, highlights the growth in membership in the Partnership for Carbon Accounting (PCAF) global standard for measure and report financed emissions.

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Bloomberg Tax Insights articles are written by tax professionals who provide expert analysis on current issues in tax practice and policy, tax trends and topics, and practice and management of firms. tax and accounting. If you have an interesting and never-published article to publish, we would love to hear about it. You can contact our Insights team by sending an email to TaxInsights@bloombergindustry.com.

Beyond the tax

Technology can translate into wealth: Six of the world’s ten richest billionaires – according to Forbes’ billionaire list – owe their wealth to technology. But what happens in the event of a split? It’s not easy to assess the value of a last name in divorce proceedings, but treating it like property may be the answer, says Greg Bordelon, professor of law at the University of Law’s faculty. from Maine. In What is a last name worth in the event of divorce? If it’s doors, a lot, Bordelon says that the value of the last name is an open question.

Student writing competition

Think you have the “writing” thing for Bloomberg Tax Insights? We’re excited about our first Bloomberg Tax Insights writing contest, designed to showcase the best in student writing.

Watch him

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

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

Answer your speed dials

The ENIAC (Electronic Numerical Integrator And Computer), built between 1943 and 1945, weighed around 30 tons.

A fire engine racing for an emergency call in London.

Photographer: Scott Barbour via Getty Images.

That’s about the weight of a full size fire truck or more than two school buses.

The U-shaped computer occupied a 1,500 square foot room. It had 40 cabinets, each nine feet high, filled with 18,000 vacuum tubes, 10,000 capacitors, 6,000 switches and 1,500 relays. Makes that year-old laptop a little lighter, eh?

Exclusive content for Bloomberg Tax subscribers

From taxes on digital advertising to online sales of goods and services, countries are changing the way they tax technology. Bloomberg Taxation and Accounting Roadmap on digital services taxes and other unilateral measures provides a high-level summary of digital services taxes and other unilateral direct tax measures adopted or proposed in jurisdictions around the world.

For more information on digital service taxes, VAT / GST, and indirect tax considerations, as well as news on digital taxes, see Bloomberg Tax and Accounting.
* Note: Your Bloomberg Tax ID will be required to view these resources.

More interesting tax content

This is a Bloomberg Tax Insights weekend roundup, written by practitioners and featuring expert analysis on topical issues in tax practice and policy. For a complete archive of items, browse by jurisdiction at Daily Tax Report, Daily Tax Report: State, Daily Tax Report: International, Transfer Pricing Report, and Financial Accounting.

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

What did you think

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




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