Communication to Eliminate Tax Risk –

Tax Risk Management Web Interface System —V1.01

The Tax Risk Management Web Interface design should entail some of the following features:

– Interface customization according to each division in the business to be separately identifiable, with a consolidation option.

– Log on through a three-level log-on secure method:

– Username

– PIN code with five digits

– Individually selected password

– Dashboard, being the landing page, where once a browser has logged onto the system, it will display all the critical information that is important to view at a glance, with the following sections:

– A notice board that can be changed by select users to make announcements

– Work in Progress (“WIP”) showing any tax compliance issues that must be attended to in the next thirty days

– Work completed in the last thirty days

– The tax team diary and agenda for each forthcoming meeting

– On-the-radar screen issues, with each one quantified with a risk weighting attached to the estimate

– Off-the-radar screen issues, with each one quantified with a risk weighting attached to the estimate

– Tax planning issues identified, with each one quantified with a risk weighting attached to the estimate

Notice Board

This is a simple notice area, displaying relevant information to those who are using the system. It requires the following fields:

– Date posted

– Person who posted notice

– Detail of notice

Work in Progress

Work in progress defines the work currently being done on any tax return within the organization. This is put into place in order to ensure that every single tax return is completed timeously and as accurately as possible, using the defined guidelines proposed by the tax team. A return will appear in the work in progress as soon as it is received from the IRS and added to the system.

The data required for the WIP section is as follows:

– Date received

– Due date

– Project manager (linking to users, with all contact Information)

– Operator (person whose task has been assigned to—linking to

users, with all contact Information)

– Project status (percentage complete)

– Preparation schedule (PDF)—this is the supporting document, explaining what is to be submitted in the tax return

– Tax return (PDF)—this is to be updated as the return is completed

– IRS guideline (PDF)—this is the IRS guideline for the completion of the return

– Preparation guideline (PDF)—this will be a general document defined by the tax team for the processing of such tax returns.

Each different tax will have its own guideline.

– WIP comments—The project manager and operator is required to enter comments throughout the process. These comments include

– date submitted,

– comment body,

– person who posted comment, and

– date tax return was submitted to the IRS.

Other key dates that may be required in the management process are

– date of prescription,

– date of query letter from the IRS,

– date query response due to the IRS, and

– date reply to response due from the IRS.

WIP Work Flow Process

The WIP work flow process is important as this defines how and what is done in order to ensure that the returns are submitted in time.

– Receive the IRS return.

– Return added to the Tax Risk Management Web Interface in PDF format.

– Entry created in WIP.

– Project manager assigns operator.

– E-mail sent to all members of the tax team notifying them of the receipt of the IRS return, due date, and people responsible for completing tax return.

– Thirty days prior to return due date entry is added to the WIP area on the “Switchboard.”

– Thirty days prior to return due date an e-mail sent to all members of the tax team notifying them of status (the e-mail displays return receipt date, due date, and people responsible within the organization).

– One week prior to return due date entry is marked RED (CRITICAL) on the WIP area on the “Switchboard.”

– One week prior to return due date a CRITICAL e-mail sent to all members of the tax team notifying them of status (the e-mail displays return receipt date, due date, and people responsible within the organization). From this point an e-mail is sent daily to each member of the committee until the due date.

– If the return is not submitted marked for send-off on the due date the return is automatically added to the on-the-radar screen tax issues.

– An e-mail is sent to each member of the tax team notifying them that the due date has been missed. An e-mail is sent daily informing each member of the status. When the return is submitted it is automatically removed from WIP and placed in Work Completed.

Work Completed

Work completed shows all returns that have been successfully submitted. Information that is important here is the following:

– Date received

– Due date

– Project manager (linking to users, with all contact information)

– Operator (person whose task has been assigned to—linking to Users, with all contact information)

– Preparation schedule (PDF)—this is the supporting document, explaining what is to be submitted in the tax return

– Tax return (PDF)—this is to be updated as the return is completed

– IRS Guideline (PDF)—this is the IRS guideline for the completion of the return

– Preparation guideline (PDF)—this will be a general document defined by the tax team for the processing of such tax returns. Each different tax will have its own guideline.

– WIP comments—The project manager and operator are required to enter comments throughout the process. These comments include

– date submitted,

– comment body,

– person who posted comment, and

– date tax return was submitted to the IRS.

Other key dates that may be required in the management process are

– date of prescription,

– date of query letter from the IRS,

– date query response due to the IRS, and

– date reply to response due from the IRS.

Work Completed Work Flow

Work completed work flow is as follows:

– On submission of return the WIP item is automatically added to the “Work Completed” section.

– An e-mail is sent notifying each member of the tax risk committee of the submission of the return.

– For thirty days after the submission the entry is displayed in “Work Completed” area on the “Switchboard.”

– Thirty days after the submission the entry is removed from the “Switchboard” but is still available to view in the “Work Completed” section.

Tax Team Diary

The diary acts as a notice board , notifying the members of the tax team of the next meeting. The tax manager is responsible for the submission of information. The data displayed is as follows:

– Meeting date

– Meeting time

– Meeting venue

– People to attend

– Discussion points

– Facility to upload complete agenda

– Facility to add to agenda (by each member of the tax team)

Work Flow

– On submission of diary event an e-mail is sent to each member of the tax team notifying them of such an event.

– The “Switchboard” displays the NEXT tax team meeting.

– A notification e-mail is sent to each member one month prior to meeting.

– A notification e-mail is sent to each member one week prior to meeting.

– A notification e-mail is sent to each member two days prior to meeting.

– A notification e-mail is sent to each member one day prior to meeting.

– Diary entry is automatically removed from “Switchboard” at time of meeting, and if the next date is already added this will be displayed.

In accordance with Circular 230 Disclosure