David Weisbach, a former Treasury Department official who helped write the regulations governing the tax-code provision that Bristol Myers is accused of violating, agreed. PwC and White & Case “are giving you 138 pages of legalese that doesn’t address the core issue in the transaction,” he said. “But you can show the I.R.S. you got this big fat opinion letter, so it must be fancy and good.”

The current status of the tax dispute is not clear. Similar disputes have spent years winding through the I.R.S.’s appeals process before leading to settlements. Companies often agree to pay a small fraction of what the I.R.S. claims was owed.

“There is a real chance that a matter like this could be settled for as little as 30 percent” of the amount in dispute, said Bryan Skarlatos, a tax lawyer at Kostelanetz & Fink.

In that case, the allegedly abusive tax shelter would have saved Bristol Myers nearly $1 billion.

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Greensill Capital: The Collapse of a Company Built on Debt

LONDON — The courthouse should have already been closed for the day.

At a hearing that began at 5 p.m. on March 1, lawyers for Greensill Capital desperately argued before a judge in Sydney, Australia, that the firm’s insurers should be ordered to extend policies set to expire at midnight. Greensill Capital needed the insurance to back $4.6 billion it was owed by businesses around the world, and without it 50,000 jobs would be in jeopardy, they said.

The judge said no; the company had waited too long to bring the matter to court. A week later, Greensill Capital — valued at $3.5 billion less than two years ago — filed for bankruptcy in London. An international firm with 16 offices around the world, from Singapore to London to Bogotá, was insolvent.

Greensill’s dazzlingly fast failure is one of the most spectacular collapses of a global finance firm in over a decade. It has entangled SoftBank and Credit Suisse and threatens the business empire of the British steel tycoon, Sanjeev Gupta, who employs 35,000 workers throughout the world. Greensill’s problems extend to the United States, where the governor of West Virginia and his coal mining company have sued Greensill Capital for “a continuous and profitable fraud” over $850 million in loans.

At the center of it is Lex Greensill, an Australian farmer-turned-banker, who in 2011 founded his company in London as a solution to a problem: Companies want to wait as long as possible before paying for their supplies, while the companies making the supplies need their cash as soon as possible.

The Australian newspaper that he did the same for President Barack Obama in the United States.

Eventually, Mr. Cameron would become an adviser to Greensill. Julie Bishop, Australia’s former foreign minister, also joined the company as an adviser.

Greensill Capital’s defining year was 2019, when SoftBank’s Vision Fund, the $100 billion investment vehicle built to make huge bets on disruptive technology companies, invested $1.5 billion. On the day the first of two SoftBank investments was announced, Mr. Greensill told Bloomberg TV that his company would have “multiple opportunities” to work with SoftBank and the other companies in their portfolio.

Mr. Greensill had become a billionaire.

Carillion in 2018 and the Spanish renewable energy company Abengoa, which filed for insolvency in February. Abengoa, an early customer of Greensill, narrowly escaped bankruptcy in 2015 when its huge debt load — billions of euros — was revealed.

Regulators, auditors and ratings agencies have grown concerned about the lack of transparency that can make company balance sheets look stronger than they are. In June, the Securities and Exchange Commission asked Coca-Cola to provide more details about whether it was using supply chain finance after noticing an increase in its account payables of $1.1 billion.

After pleas from accounting companies, the rules might be tightened in the United States. In October, the U.S. Financial Accounting Standards Board said it would start developing stronger disclosure requirements, though two months later, an international accounting board decided not to do the same.

For Greensill Capital, signs of trouble began appearing in 2018, the year before SoftBank made its big investments.

GAM, the Swiss asset manager, rocked the London financial community when it suspended one of its top fund managers, Tim Haywood. He later lost his job for “gross misconduct,” Bloomberg reported, after an internal investigation raised questions about investments he made in companies tied to Mr. Gupta, who was fast-becoming a steel and metals tycoon. The middleman in the deals, Bloomberg said, was Mr. Greensill.

The next year, Mr. Greensill’s debt funds were attracting unusual interest from SoftBank. Even as the Vision Fund was investing in Greensill, a different arm of SoftBank poured hundreds of millions into the Credit Suisse funds, according to people with knowledge of the transactions. That arrangement put SoftBank in a complex position: One division was Greensill’s largest shareholder and another was a lender to Greensill, via the Credit Suisse funds.

BaFin said it had uncovered evidence that assets linked to Mr. Gupta listed on the bank’s balance sheet did not exist.

insolvency proceedings for Greensill Bank.

an 18 million euro state-backed loan in December from Greensill Bank. But two days later, the bank abruptly pulled back the funds, said Jean-Philippe Juin, a member of the Confédération Générale du Travail labor union representing the factory, where 600 people work.

While GFG said it had “strong cash flows” across the group, the workers at the Poitou plant were warned last week that there might not be enough money to pay their salaries for March, Mr. Juin said.

“Mr. Gupta presented himself to us as a savior, with hopeful words and many promises,” Mr. Juin said. “In the end, he turned out to be an empty shell.”

Michael J. de la Merced, Stanley Reed, Matthew Goldstein and Raphael Minder contributed reporting.

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A Love Letter to My Accountant

When it was my turn, it was well past 9 p.m. He looked over my papers, all my accounting of trying to make a life out of words. “Hmm,” he said, “hmm.” He told me I would owe a tax bill in the low thousands. I almost blacked out. “But,” he said gently, “that just means you’re successful. You’ve made this much from writing.”

My accountant taught me that even in a life of pursuing art, where uncertainty is built in, some care can be taken to make plans, to plan for success, not just wish to succeed, and in planning offer myself some ballast against nothing at all going according to plan. It’s a difficult lesson to learn — the lives of great artists are riddled with instability. But he also reminds me, every April 15, not to block my blessings, not to decide I already know how my artistic career will end, that life can surprise you with good things as well as bad.

How Has the Pandemic Changed Your Taxes?

Nope. The so-called economic impact payments are not treated as income. In fact, they’re technically an advance on a tax credit, known as the Recovery Rebate Credit. The payments could indirectly affect what you pay in state income taxes in a handful of states, where federal tax is deductible against state taxable income, as our colleague Ann Carrns wrote. Read more.

Mostly.  Unemployment insurance is generally subject to federal as well as state income tax, though there are exceptions (Nine states don’t impose their own income taxes, and another six exempt unemployment payments from taxation, according to the Tax Foundation). But you won’t owe so-called payroll taxes, which pay for Social Security and Medicare. The new relief bill will make the first $10,200 of benefits tax-free if your income is less than $150,000. This applies to 2020 only. (If you’ve already filed your taxes, watch for I.R.S. guidance.) Unlike paychecks from an employer, taxes for unemployment aren’t automatically withheld. Recipients must opt in — and even when they do, federal taxes are withheld only at a flat rate of 10 percent of benefits. While the new tax break will provide a cushion, some people could still owe the I.R.S. or certain states money. Read more.

Probably not, unless you’re self-employed, an independent contractor or a gig worker. The tax law overhaul of late 2019 eliminated the home office deduction for employees from 2018 through 2025. “Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home,” the I.R.S. said. Read more.

Self-employed people can take paid caregiving leave if their child’s school is closed or their usual child care provider is unavailable because of the outbreak. This works similarly to the smaller sick leave credit — 67 percent of average daily earnings (for either 2020 or 2019), up to $200 a day. But the caregiving leave can be taken for 50 days. Read more.

Yes. This year, you can deduct up to $300 for charitable contributions, even if you use the standard deduction. Previously, only people who itemized could claim these deductions. Donations must be made in cash (for these purposes, this includes check, credit card or debit card), and can’t include securities, household items or other property. For 2021, the deduction limit will double to $600 for joint filers. Rules for itemizers became more generous as well. The limit on charitable donations has been suspended, so individuals can contribute up to 100 percent of their adjusted gross income, up from 60 percent. But these donations must be made to public charities in cash; the old rules apply to contributions made to donor-advised funds, for example. Both provisions are available through 2021. Read more.

At the end of our first meeting, he said to me, gravely, “You are good at this. You are going to make money as an artist. You need to be ready for it,” and he told me what funds to put money in, which retirement plans to invest in, for the following year. I went back to him a year later, when I was getting married, and he gave me advice for my taxes then. He told me, poignantly, “Don’t get married on Christmas or New Year’s. It will ruin those days for you.”

By then, I had talked to him long enough to know that he had been married and divorced, and that he had seven adult daughters of his own, all trained as accountants — they helped him out during tax season. Sometimes I would call his office after negotiating a contract or finding out about a grant, and I would only get the machine. This was because, he’d explained to me, he took off six months out of the year to travel around West Africa to collect the art that I saw in his office.

The last time I saw him in person was the 2019 tax season. I was five months pregnant, my then-husband had just lost his job, and we were suddenly both living off a research stipend for a fellowship I had. He sat with us and assured us it would be OK. I was stressed about money, stressed about my baby’s future, stressed about how I was going to pay for my looming hospital bills. Talking to him was one of the few times during that turbulent pregnancy when I felt like I was being taken care of by another person, instead of taking care of everyone else — a gift for which I will always be grateful.

Last pandemic’s tax season was pushed back again and again by the catastrophe. I did my taxes in June on the back porch of the house I was living in during quarantine, paying a masked sitter $20 an hour for the privilege of talking to my accountant on the phone without a baby in the background. I realized my relationship with him is the most positive one I’ve ever had with a man over money. As I updated him on my pandemic year — marriage over, job offers gone, quarantining in another state — he only murmured sagely into the phone. He’d seen it all. “But I did what you told me to last year and paid my estimated tax,” I said.

“You listened to me?” he replied, with a fatherly warmth. “Of course,” I said. “None of my clients ever do,” he laughed. And then he said he’d set me up for 2021, because I’d followed his directions. It was one of my proudest moments in the hazy, heady year.

Kaitlyn Greenidge is the author of the forthcoming novel “Libertie” and the features director at Harper’s Bazaar.

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