As I faucet this out on my laptop computer—a tax roundup that you simply’ll possible learn on a cell phone or pill—it’s simple to really feel like know-how has been round perpetually. Some advances have been round for many years, however a few of what we depend on day by day could also be lots 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 out there to the general public in 1981. However the first iPad didn’t come alongside till 2010.
And digital funds? The primary automated teller machine (ATM) made its public debut within the U.S. in 1969, however Bitcoin didn’t seem till 2009.
It’s clear that know-how 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 line with the IRS, almost 94% of federal revenue tax returns obtained this yr had been filed electronically.
And since cash, shares, and digital property might be moved round on-line within the blink of an eye fixed, tax authorities are rethinking how you can greatest body tax coverage to seize these transactions. That’s resulted in controversial new digital taxes and proposals.
It’s lots for tax practitioners to maintain up with, which is why we now have you lined with our Insights Roundup.
Fast Numbers Trivia
How a lot did the primary laptop weigh?
(Reply is on the backside.)
With know-how 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 Legislation look at 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, vice chairman of rising applied sciences for NuData Safety.
Tech continues to develop at a fast 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 massive 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 massive factor—is IRS steerage coming in the end?
You will discover 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 problem each at residence and overseas. Notably, the OECD/G20 Inclusive Framework’s two-pillar mission on the tax challenges of digitalization, generally 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 appears on the modified panorama and discusses attainable outcomes.
The worldwide economic system is anticipated to develop 4% in 2021. That’s some huge cash altering palms, together with vital cross-border transactions. A few of these transfers might 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 companion at Orsay Avocats Associés in Paris.
Because of the web, you possibly can donate to a donor-advised fund (DAF) with the clicking of a button, however what then? DAFs have been criticized lately 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 observe at Van Scoyoc Associates, means that Donor-Advised Funds Are the Linchpin of Local Charitable Giving.
Know-how comes with benefits, however it has additionally contributed to a rise in vitality consumption. Till lately, banks, asset managers, and different monetary establishments used to really feel faraway from the challenges of local weather change—however which may 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) world commonplace to measure and report financed emissions.
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Know-how can translate into riches: Six of the ten richest billionaires on the earth—in accordance with Forbes’ Billionaire listing—owe their wealth to know-how. However what occurs when there’s a cut up? It’s not simple 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 Faculty of Legislation. 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 an awesome evaluate, however what occurs when evaluations aren’t so terrific? In a world the place on-line evaluations might be key to attracting—or dropping—potential purchasers, it’s important to know when and the way to reply to damaging evaluations.
Gina F. Rubel, Esq., Founder and CEO of Furia Rubel Communications, Inc., will share what it is advisable to learn about on-line popularity administration in a digital occasion on Could 26 at 12:00 pm EST. You possibly can listen in here, no registration required.
Your Fast Numbers Reply
ENIAC (Digital Numerical Integrator And Laptop), constructed between 1943 and 1945, weighed about 30 tons.
That’s in regards to the weight of a large-sized hearth truck, or greater than two college buses.
The U-shaped laptop crammed 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 just a little lighter, huh?
Unique Content material for Bloomberg Tax Subscribers
From digital promoting taxes to gross sales of on-line items and companies, nations are altering how they tax know-how. The Bloomberg Tax and Accounting Digital Service Taxes and Other Unilateral Measures Roadmap supplies a high-level abstract of digital companies taxes and different unilateral measures associated to direct taxes enacted or proposed in jurisdictions across the globe.
For added details about digital companies taxes, VAT/GST and oblique tax concerns, in addition to information about digital taxes, see Bloomberg Tax & Accounting.
*Word: Your Bloomberg Tax login will likely 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 skilled evaluation on present points in tax observe 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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