Tackling Tax

Digital assets have the potential to start (or perhaps already are) significantly altering the global financial landscape. Yet the rapid evolution of the industry and a sea of unfamiliar technical terms has many feeling a bit lost and overwhelmed. Tune in as guests Nik Fahrer, Brian Condron, Jeremy Goss, Tom Haldiman, Neal Maddy, and Geron Morgan discuss the why, the what, the risks, and the opportunities associated with digital assets. Here's what's covered:

• Who are our guests? [01:53]
• What problem are digital assets solving and why are they important? [07:27]
• Nonfungible tokens (NFT), Web 3.0, and use cases [16:49]
• What's a smart contract? [21:10]
• Decentralized Finance (DeFi) [24:13]
• Wallets [33:48]
• Is it anonymous? [40:57]
• Illegal activity [48:29]
• Stable coins and central bank digital currency [50:59]
• Decentralized autonomous organizations [56:51]
• Regulation and tax challenges [01:05:29]
• Reporting and accounting considerations [01:20:05]
• How to get started in and learn more about crypto [01:27:12]
• Executive order on digital assets [01:36:44]

Learn more about our guests and get additional resources here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

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What are environmental, social, and governance (ESG) standards? How do they affect my business? Host Damien Martin sits down with guest Dirk Cockrum to define ESG, explain its potential effects, describe various ESG frameworks, and share how to get started on building your program. Here's what's covered:

• What's ESG?
• Why businesses, owners, and investors should pay attention to it
• Factors that have driven the increase in interest in recent years
• Myths or common misconceptions about ESG
• How is reporting around ESG developed and what should businesses know about it?
• Tips for those looking at implementing an ESG program
• Predictions regarding ESG for 2022 and beyond

Learn more about Dirk and get additional resources here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

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As returning guest Ted Kontopoulos puts it, "The whole point about writing, like speaking, is communicating." Host Damien Martin sits down with Ted to discuss the importance of writing and actionable items to help you become a better writer. Here's what's covered:

• Ted's journey as a writer [02:00]
• Approaching the different types of writing [09:32]
• Tips for being concise and precise [19:26]
• The review process [26:00]
• Common mistakes [36:38]
• Benefits of article writing [44:35]
• Topic selection [53:45]
• Five writing resolutions [55:54]
• What's next for Ted? [59:54]

Learn more about Ted and get additional resources here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

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The CPA credential is a symbol of trust and professionalism in the world of business that unlocks a career of endless opportunities. Host Damien Martin sits down with Todd Shapiro—the CEO of the Illinois CPA Society—and Tom Murtagh—chairperson of the Illinois CPA Society's board of directors and BKD tax partner—to discuss the opportunities and challenges currently facing the CPA profession. Here's what's covered:

• The impact of the pandemic on the profession [01:48]
• Changes in expectations [06:50]
• A decline in the credential and a stagnating CPA pipeline [16:39]
• Relevance now and into the future [24:53]
• Be a strategic advisor [28:18]
• Developing a strategic mindset [40:38]
• The barrier is time [45:27]
• Diversity in the profession [48:39]
• Closing thoughts on the profession [55:35]

Learn more about our guests and get additional resources here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

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Innovation has become an increasingly popular word both at home and in the office—but what is it and why do you need to be focused on it? Guest Dustin Bobbitt joins host Damien Martin to break it down and share perspectives and insights on lessons learned as BKD's director of innovation. Here's what's covered:

• How do you define innovation? [01:17]
• Why is innovation so important to an organization? [04:43]
• Innovation and private equity [06:58]
• What does innovation look like in a public accounting firm? [08:42]
• Examples of innovation at BKD [13:38]
• Is there a process to innovation? [17:31]
• Some of the best ideas come from those who are just starting [21:31]
• Tips for organizations looking to innovate [22:47]
• "Embrace an innovative mindset" [24:46]

Learn more about our guests and get additional resources here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram | YouTube

If you thought the twists and turns of 2020 made it difficult to keep up with tax court cases, 2021 gave you a run for your money! Frequent guest Tony Nitti joins host Damien Martin for our third annual look at key lessons from Tony's top tax cases of the year. Here's an overview and summary of the sources mentioned in the episode:

#1: Holliday v. Commissioner, C. Memo 2021-69 and Blum v. Commissioner, T.C. Memo 2021-18 [05:20]

Malpractice award for mishandling divorce proceeding was includible in gross income concerning whether the award was a return of capital or taxable income. Mentioned in the discussion:

• Internal Revenue Code (IRC) Sections 61, 104, and 141
• Rul. 81–152
• Other cases discussed:
  • Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (1955)
  • Clark v. Commissioner, 40 B.T.A. 333 (1939)
  • Cosentino v. Commissioner, T.C. Memo 2014-186
  • McKenny v. United States, 126 AFTR 2d 2020-5943 (11th Cir. 2020)
  • Eisner v. Macomber, 252 U.S. 189 (1920)
  • Commissioner v. Groetzinger, 480 U.S. 23 (1987)

#2: United States v. Forte (D. Utah 2021) [24:49]

Both parties failed to prevail on ambiguous facts surrounding qualification for exclusion on the sale of a primary residence. Mentioned in the discussion:

• IRC §121
• PLR 201628002

#3: Ushio v. Commissioner, T.C. Summary Opinion 2021-27 [38:17]

Claiming an ordinary loss on a bad investment. Mentioned in the discussion:

• §§67(g), 165, 166, 1202, and 1244
• Rul. 93–80
• United States v. Generes, 405 U.S. 93 (1972)
• Trent v. Commissioner, 34 T.C. 910 (1960)

#4: PLR 202125004 and PLR 202114002 [50:09]

Mentioned in the discussion:

• IRC §§199A, 1045, and 1202
• Reg. §1.199A-5

#5: Heiting v. United States, 16 F. 4th 242 (7th Cir. 2021) [1:05:34]

Taxpayers were unable to prevail on unauthorized sale of stock by grantor trust under the claim of right doctrine. Mentioned in the discussion:

• IRC §§165 and 1341
• Other cases mentioned:
  • North American Oil Consolidated v. Burnet, 286 U.S. 417 (1932)
  • Nacchio v. United States
  • James v. United States, 366 U.S. 213 (1961)

#6: Berry v. Commissioner, T.C. Memo 2021-52 [1:19:48]

Taxpayer lacked sufficient evidence to assign income and deduct related expenses from drag racing tournaments. Mentioned in the discussion:

• IRC §162
• Other cases mentioned:
  • Deputy v. du Pont, 308 U.S. 488 (1940)
  • Palo Alto Town & Country Village, Inc. v. Commissioner, 565 F.2d 1388 (9th 1977)
  • Henry v. Commissioner, 362 F.2d 640 (1966)
  • Evans v. Commissioner, T.C. Summary Opinion 2012-125

#7: Hussey v. Commissioner, 156 T.C. No. 12 [1:30:30]

Reducing basis of assets when IRC §108(a)(1)(E) exception applies. Mentioned in the discussion:

• IRC §§61(a)(11), 108, 752, and 1017

#8: Tribune Company v. Commissioner, T.C. Memo 2021-122 [1:42:28]

Taxpayer's senior debt guarantees related to the disguised sale of the Chicago Cubs were bona fide but the subordinated debt by the Ricketts family was essentially equity. Mentioned in the discussion:

• IRC §§108, 737, and 752
• Canal Corp v. Commissioner, 135 T.C. No. 9 (2010)

#9: Slaughter v. Commissioner, 129 AFTR 2d 5399 (CA 11) [2:04:20]

Author was required to recognize income under a publishing contract as self-employed income. Mentioned in the discussion:

• IRC §§162 and 1402
• Commissioner v. Groetzinger, 480 U.S. 23 (1987)

#10: Aspro, Inc. Commissioner, T.C. Memo 2021-8 [2:12:32]

Purposed management fees to shareholders determined to be disguised dividends. Mentioned in the discussion:

• Reg. §1.162-7

Get additional resources and learn more about Tony here!

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

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Employee stock ownership plans (ESOP) and business valuations often play a key role in succession and continuity planning. BKD's Cara Benningfield and Shaun Duffin join host Damien Martin to explain what ESOPs and valuations are and break down the impact of the current environment to include the pandemic, uncertainty in the economy, and possible tax changes. Here's what they cover:

• What's a business valuation and why are they done? [02:22]
• What's an ESOP and what role can they play in planning? [03:57]
• ESOP fit and good candidates for one [05:52]
• The intersection of ESOPs and valuations [07:26]
• Effect of COVID-19 on valuations [11:18]
• The role of projections in valuations and navigating uncertainty in the economy and the market [19:08]
• Current trends in ESOP transactions and valuations [20:19]
• Effect of potential tax changes [22:25]
• ESOPs and the talent war [26:25]
• "It takes a village" [34:40]
• Takeaways and closing thoughts [39:17]

Learn more about our guests and get additional resources at www.bkd.com/simplytax.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram | YouTube

It's been another year like no other amid tax law changes, a shifting economy, an ongoing global pandemic, and new regulations—and the BKD Year-End Tax Advisor is back with more than 20 articles to assist with crucial year-end planning decisions. Host Damien Martin caught up with five contributors to this year's Tax Advisor to discuss their articles in front of a live audience on November 4, 2021, in St. Louis, Missouri, as part of BKD's annual Leadership Conference. Here's what's covered:

• What is the Tax Advisor [02:16]
• 10 IRS LB&I Compliance Campaigns You Should Know About with Yelena Bosovik [03:14]
  • What is LB&I?
  • The purpose of the campaigns
  • Takeaways on Yelena's top three campaigns
• Global Tax Reform – Pillars One & Two with Elizabeth Hazzard-Herzing [08:07]
  • What's this global minimum tax I hear about?
  • What is BEPS and who is the OECD?
  • Why is global agreement so significant yet challenging to implement?
  • What are the two pillars and the latest on each?
• 2021 Year-End Tax Planning for Individuals with Jessica Kinnard [17:30]
  • Charitable planning and giving
  • Child tax credit
  • Changes to loss limitations
• Tax Planning Through Uncertainty – To Sell or Not to Sell with Stacey Atchison [27:57]
  • Overview of the current tax proposals impacting capital gains
  • Recommendations on approaching the uncertainty
  • To sell or not to sell?
• Retirement Strategies in a Time of Uncertainty with Amy Frizzell [36:03]
  • Items to keep in mind for those working on retirement
  • Items for those already enjoying retirement
  • Suggestions given some of the uncertainty we've seen lately with significant proposals

Learn more about our guests and get the additional resources mentioned in the episode here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

You might also enjoy our Simply Tax Talks: Join host Damien Martin, Yelena (Bosovik) Sheremeta, and Tad Goodenbour for a weekly 30-minute livestream on YouTube on Tuesdays at 10 am Central time! Get your questions answered live as we cover the latest developments, share thought-provoking insights, and offer strategies amid the uncertainty.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

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Conversations on tax change are picking up steam with recent developments in the Washington. Frequent guest Ed Karl—vice president of taxation at the AICPA—returns to the podcast to break down the recently enacted Infrastructure Investment and Jobs Act and provide the latest on the Build Back Better Act (BBB) as we head into the Thanksgiving holiday. Here's what's covered:

• The impact on the acceleration of the sunset of the employee retention credit [00:46]
• Other tax-related areas of the infrastructure bill to unpack [06:46]
• Where things stand on the BBB [10:15]
• What to watch as the reconciliation bill heads to the Senate and areas of concern regarding the tax provisions in the reconciliation legislation [19:46]
• Approaching uncertainty [33:35]
• IRS services challenges and funding [37:04]

Learn more about Ed and get the additional resources mentioned in the episode here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram | YouTube

The threat and impact of cybercrime have become an unwanted part of our daily lives. Cy "the Cyber Guy" Sturdivant joins host Damien Martin to break down the biggest cybersecurity threats and provide best practices to help businesses and their owners identify and deter cyberattacks. Here's what they cover:

• What is cybersecurity? [01:27]
• Who should be concerned with it? [02:34]
• How does Cy characterize the current cybersecurity environment? [04:59]
• What are the key threats? [06:27]
• How has the pandemic affected the cybersecurity environment? [08:39]
• What industries and organizations have the highest threat level? [10:44]
• What can you do about risk and how do you access your level of risk? [12:15]
• How is cybersecurity affecting the supply chain? [16:50]
• Any advice for those feeling overwhelmed? [19:36]

Learn more about Cy and get the additional resources mentioned in the episode here.

GET MORE SIMPLY TAX

We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel.

A complete archive of our episodes is available on our website and YouTube playlist.

We'd love to hear from you! Email feedback and questions to [email protected].

Connect with Damien on social media!

LinkedIn | Twitter | Instagram | YouTube