Communication to Eliminate Tax Risk –

The SEC in USA’s chief accountant said, “Sunlight is said to be one of the best disinfectants, and the area of income tax accounting could use more sunlight”.

Executive Summary

COMMUNICATION IS VITAL to the entire tax risk management process. Effective communication channels must be opened up and maintained on a regular basis, especially with the operations divisions of a business where there is often the least amount of transparent communication with the tax manager. Internal meetings between the various departments and the tax team must be encouraged on a more regular basis where all potential risk areas must be divulged to the tax team. Informal communication channels must also be present and allow all the various departments within a business access to the tax team should they need it.

Effective interaction and sharing of information with a person within the IRS must also be seen as important. Creating and maintaining an effective and amicable relationship allows you to have one foot in the door at the IRS.

Effective communication will allow the business to be well prepared when the IRS is to conduct tax compliance audits from time to time.

In accordance with Circular 230 Disclosure