Week in Insights: When Calling It a Wrap Means Something More

When I first moved to Philadelphia, it was pretty easy to peg me as an out-of-towner. No, it wasn’t my funny accent or big hair, nor my penchant for putting peanuts in my Diet Coke. I broke a cardinal rule: I called a hoagie a sub sandwich.

The word hoagie is ubiquitous in Philadelphia—the term was reportedly coined here. The generally accepted story is that Italians working at the old Navy Yard on Hog Island would put meat, cheese, and lettuce between two slices of bread. It was first called the Hog Island sandwich and eventually shortened to “Hoggies” and then, hoagie.

Today, I’m fairly certain that you’re not allowed to reside inside the city limits without a favorite hoagie (mine: mixed cheese with hot peppers and pickles).

But while hoagies are all the rage in Philadelphia, sandwiches are popular all over the world. They come in different forms—panini, subs, croque monsieurs, club sandwiches, banh mi, chip butties, bocadillo, and po’ boys—but the idea is the same.

The sandwich allegedly got its name from John Montagu, the 4th Earl of Sandwich. Reportedly, he ordered meat between two pieces of bread so that he could continue playing cards without needing a fork. While the food had existed for years in various forms, it finally had a name.

Today, sandwiches are called by all kinds of names. Some eateries, like Potbelly and Subway, have even built their entire success on the (bread) heels of the sandwich.

But it took a bit for sandwiches to gain popularity in the US. In 1952, the Wheat Flour Institute and other groups organized a public relations campaign, which eventually included a recipe contest. That turned into National Sandwich Month, which is observed in, as you’ve probably guessed, August.

There are only a few days left in the month to celebrate—ideally, with a sandwich. It is the ultimate on-the-go food, something busy professionals know a little about; we love anything that can help us save time.

And at Bloomberg Tax, our experts offer great commentary and insightful analysis on federal, state, and international tax issues to help you be as efficient as possible. When it comes to tax, we don’t ever want you to find yourself in a pickle.

The Exchange… It’s where great ideas intersect.

— Kelly Phillips Erb

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Quick Trivia

In 2019, the NY Department of Taxation and Finance released TB-ST-835, which stated that sandwiches, generally subject to sales tax, included those that “are prepared and ready to be eaten, whether made on bread, on bagels, on rolls, in pitas, in wraps, or otherwise, and regardless of the filling or number of layers.” In addition to the sandwiches you’d expect—like BLTs and peanut butter and jelly—the bulletin included a controversial pick. What food, which means “little donkey” in Spanish, was deemed a sandwich?

Answer at the bottom.

State Insight

Since June 1, New York’s Cannabis Control Board has issued 162 recreational cultivation licenses. But businesses fortunate enough to obtain one of its recreational cannabis licenses will be forced to contend with a belting of state and local taxes, say AB FinWright’s Simon Menkes, Abraham Finberg CPA MBA , and Rachel Wright, CPA, MST .

Federal Insights

Some blockchain advocates say the technology is doing for money what the internet did for information. Accountants must evolve to help their clients navigate the revolution, or else their clients will look elsewhere, says David Canedo, CPA , head of tax and compliance strategy at Accointing.com.

Timekeeping is necessary in both the accounting and law industries, but the way it’s handled differs. If accounting firms took a note from law firms on using technology for timekeeping measures, they’d surely benefit, say Linda Long and Jill Nelson of Intapp.

Regarding NFTs and the potential implementation of sales taxes on blockchain transactions, lawmakers should embrace the challenge of providing clear and comprehensive guidance that aids compliance, says Charles Maniace of Sovos.

Organizations are facing pressure to be more transparent in their ESG reporting. James Paterson of CCH Tagetik at Wolters Kluwer looks at reporting developments, potential benefits of new guidance, and ESG reporting challenges.

Global Insights

In the latest article in the “In Focus” series, Jacob Zwaan of KPMG Advisory Indonesia looks at the tax environment for multinational companies in Indonesia, including potential obstacles when investing and the incentives available, and discusses recent and potential developments in tax laws and regulations.

Daida Hadzic and Dan Foster of KPMG discuss preferential tax regimes available to mobile individuals in many member states of the EU and predict their curtailment or abolition.

Henrique Munia e Erbolato of Santos Neto Advogados and Daniel Orsini Marcondes of Schmid & Orsini Advogados discuss the impact that Pillar One will have on Brazil’s transfer pricing rules.

Commentary

The IRS’s 1996 interpretation of the term “physical injuries” is outdated and unfairly taxes victims of invisible injuries, including many instances of sexual abuse and PTSD, say Structured Consulting’s Jeremy Babener , Precision Resolution’s Paul Isaac Jr., Sage Settlement Consulting’s Rebekah Miller, and Settlement Planning Services’ Tacker LeCarpentier .

The Inflation Reduction Act’s long-term funding boost for IRS should be a game changer for tax administration, taxpayers, and tax professionals. The agency should have a clear plan, skilled staff, and reasonable oversight to make wise spending decisions, says David King of Optima Tax Relief.

Freddie Wingfield Digby of Adsum argues that businesses must rethink how they view tax if they want a competitive edge with myriad economic challenges and lending at an all-time low. Research and development tax credits, film, TV, video game industry tax credits, and even value-added tax refunds, can and should be leveraged as an asset to secure on-demand finance.

Student Writing Competition

We’re excited to publish the winning submissions as part of the second Bloomberg Tax Insights & Commentary student writing competition. The contest highlights the very best of student writing.

Our process began in April when we posted our call for submissions. After that, a panel of judges from the Bloomberg Tax team reviewed the entries and scored them on points from organization to voice and style. Our two winners represent the best new talent in the tax profession.

Our winning entries are:

• Let’s Use Tax Incentives to Help Solve Homelessness Problems from University of Illinois at Urbana-Champaign student Roberta S. Davis
• Texas Will Provide Homeowners Tax Relief, But It’ll Cost Them from Texas A&M Mays School of Business student Zachary Engelhart

A Closer Look

Practitioners who know the differences between International Financial Reporting Standards and US Generally Accepted Accounting Principles will be better equipped to help with preparing or reviewing the income tax provision, says Crowe’s Chris Kobylewski in this edition of “A Closer Look.”

Columnists

This year, the IRS made significant changes to ensure that all taxpayers should receive tax information in a format that is accessible to them. I asked the IRS and various organizations to talk about what’s different—and what they’d like to see happen next.

Recent threats against the IRS are a reminder of the importance of civility—especially in the tax profession. I think we need to do better.

Earlier versions of the Inflation Reduction Act included a provision to close the carried interest loophole, but it was taken out by the time the legislation was signed into law. Despite its removal, it will likely remain in Democratic crosshairs, writes Andrew Leahey .

Spotlight

Our Spotlight series highlights the careers and lives of tax professionals across the globe. This week’s focus is on Bruce Wood , a business appraiser specializing in IRS-related valuation matters for Brady Ware Arpeggio, LLC in Alpharetta, Ga.

Career Moves

Missy Munoz has joined Frazier & Deeter as the leader of its environmental, social, and governance services team, the firm announced.

Grant Thornton LLP has admitted 38 new partners and principals and promoted 58 professionals to managing director, the firm announced.

Frank Marano has joined Dentons LLP as a shareholder in the tax group in Pittsburgh, the firm announced.

Thomas Manisero has joined PKF O’Connor Davies as general counsel and chief legal officer in New York to oversee legal function, the firm said.

Mary Pierce, owner of Pierce & Company LLC, has joined Dark Horse CPAs, expanding its presence in the Florida market, the firm announced.

If you are changing jobs or being promoted, let us know. You can email your submission to [email protected] for consideration.

Quick Trivia Answer

The bulletin declared that a burrito was a sandwich—alongside another controversial pick: hotdogs.

What Did You Think?

Your feedback and suggestions are important to us, so don’t hesitate to reach out on social or email me directly at [email protected].