Private Conversations With Tax Professionals: What They Have Shared With Me About Working In This New Environment

Private Conversations With Tax Professionals: What They Have Shared With Me About Working In This New Environment

A recently retired Tax Partner of an international law firm, a former CPA with a national accounting firm, and a Head of Tax of a multinational corporation, who never lost an IRS transfer pricing controversy, shared with me recently what he believes the biggest exposure is for multinationals today. Multinational companies transfer pricing methodologies will now be exposed for shifting profits and claiming certain functions are performed in countries they are not. Maybe they were in that country a few years ago but not now. He said many corporate tax executives are likely unaware of their transfer pricing exposure.  As you know, transfer pricing requires highly technical skills, knowledge and expertise.

The G7 Agreement to a 15% minimum corporate tax is an advance tax payment against future taxes. It is not an add to tax but in essence an advanced tax payment. The G7 countries are about to have a picnic at your company expense adding billions of dollars in tax revenue to their coffers through transfer pricing advance tax payments.

The IRS has issued advice for over a year now around improving self-assessment and preparing better documentation. When I asked this  tax lawyer who passed the bar in 5 states what every CFO should do now, he stated “multinationals need to focus on transfer pricing”. Furthermore, he stated “artificial Intelligence(AI) has improved the efficiency of information not only for companies but for the IRS to spot issues in your transfer pricing methodologies.”

Knowing this tax executive won every transfer pricing controversy case in court, I asked him his special secret to winning every audit. Answer: When the IRS audits your transfer pricing methodologies they want to know “How many methodologies did you use?” The IRS tells you they accept 5 different methodologies. Whenever he presented 2-3 methodologies, the IRS backed off. He said if you only use one method expect a thorough audit, increased costs and expense. He also indicated companies need to add transfer pricing talent inhouse now and they need three specific skills in their background.(I will share the 3 secret skills if we speak:)

Learn What Tax Executives Shared About Running A Remote Tax Department Today

A Head of Global Tax of a 20B company shared with me that it takes them longer to get tasks done while working from home. When they do go into the office now there are new rules how many people can be in the building. Additionally, she must handle more and it takes her more time because she does not have an assistant at her side every moment.

Another Global Head of Tax indicated he has been working with his global tax team remotely for years and working remotely was nearly a seamless transition for the tax team. What he misses though is that close person to person contact and relationship with the CFO anb business associates. The lead tax executives who share a close business relationship with their CFO enjoy their jobs more and stay with companies longer because they feel connected.

Learn What 3-5 Year Tax Staff Shared About Working In A Remote Tax Department

What I am about to share with you is important for every lead tax executive to know. Tax Staff with 2-5 years’ experience feel isolated and yearn for more connectivity with Tax Management. If you can get to your staff into face-to-face training meetings you will retain them longer. These relationships must be nurtured constantly to survive. Like kids (or pets) they need attention. I spoke with tax staff  who needed more interaction and felt they would never get ahead with little in-person contact with executive management. When you provide great training opportunities they stay longer. The lesson here is to reach out and connect with your team. Even a motivational quote sent to them every day will show them you care about their success.
Complimentary eBook Of 250+ Quotes To Motivate Tax Staff:
https://www.taxconnections.com/motivational-inspirations

On the other hand, a remote work option is preferred by many other tax professionals as some people simply do not want to return to the office. New moms and dads love the opportunity to be home with their children (after a while they are very motivated to get back to the office away from babies and with adults:).

Recently, I met an employment lawyer whose practice is roaring busy with corporate clients because companies are having difficulty getting people to return to the office. Law firms are busy with vax versus no vax issues. Last week, I was on the phone with a Silicon Valley Tax Director/Senior Tax Manager candidate who told me “Tell prospective employers I am vaxed.” We laughed about it together.

A Final Thought To Help You Get You Ahead Of The Market

Start Searching For Tax Expertise Now! It Will Take Longer To Locate And Hire Corporate Tax Expertise In This Market!  

As a seasoned expert in executive search for tax professionals, I can guarantee you will need more tax help inhouse. Corporate tax executives who develop a strong relationship with an experienced tax search expert will benefit the most in attracting the best talent to your tax team. You are going to need the best tax professionals you can find in this market.

If you are a small firm and do not have the budget for a retained search expert, simply put up your Professional Profile as a TaxConnections Member, and post the jobs you have open in your Professional Summary. We allow this to help tax organizations.

Kat Jennings Bio:

https://www.taxconnections.com/Kat-Jennings/12257589/United-States/California/La-Jolla/profilepage

We build highly visible tax brands for tax professionals! When you want to attract new tax talent, new tax clients or tax jobs, you will make great connections on www.taxconnections.com.

TaxConnections is where to find leading tax experts and technology around the world. Discover tax professionals who offer you a wide range of tax expertise and be more informed about the technology that supports them in operating efficiently and successfully.

TaxConnections connects tax professionals with new tax clients and tax jobs around the world. Tax Professional Members establish higher visibility online so prospective clients and employers can find our members easily. Each members also receives a Virtual Tax Office which is the most valuable online real estate available today! TaxConnections makes a difference in your professional life.

We offer a Special Membership rate to tax professionals out of work.
https://www.taxconnections.com/special-membership

Kat Jennings, CEO
TaxConnections
858.999.0053
kat@taxconnections.com

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