□ Step 1. Taxpayers tend to be reactive to tax risks and tax problems. This will translate into additional tax exposure through the imposition of tax penalties and interest, and lead to poor relationships with the Internal Revenue Service (“IRS”). Proactive tax risk management will eliminate the additional tax exposure, improve IRS relationships and place control of the tax risk management process back in the hands of the business, and not the IRS. This then translates into a golden opportunity to develop an ongoing tax planning process, to keep tax exposures under control, and in a proactive manner.

□ Step 2. Tax compliance departments in businesses try to cover their tax risk without outside professional assistance, except on a reactive basis. This contributes to Step 1; tax risk management becomes reactive. By creating a tax team that participates proactively in the TRM™ process, the business is able to expand its tax risk cover from 40% to 100%.

□ Step 3. Most businesses do not have a road map of how and where they are going with their tax risk management TRM™, other than blindly ensuring that they are “fully tax compliant”. Without a properly formulated TRM™ strategy in place, the goals and objectives, and the manner of executing a TRM™ process so as to minimize tax risk, cannot be achieved properly. An extensive and fully Read More