Around the globe, tax policy changes present both opportunity and peril to corporate tax departments, small business owners and individuals. Failure to plan appropriately for tax policy changes can result in significant opportunity costs and limit one's potential for financial success.
The pressure to keep abreast of an ever-increasing number of material changes to tax laws and regulations has intensified in recent years. The down economy and an active regulatory environment have accelerated the pace of tax policy changes at the federal/country level. Territorial and state tax policy is also on the rise. At the same time, enforcement activity has also ramped up, as tax authorities attempt to mitigate governmental risks within a challenging economic climate.
In light of increased tax policy activity, compliance requirements are paramount. Organizations and individuals must take steps to make the right payments at the right time, without mistakenly overpaying based on a misunderstanding or lack of awareness of current tax rules.
To stay on top of tax policy changes and take maximum advantage of the changing tax landscape, the following best practices are recommended:
- Monitor the legislative and regulatory tax changes that are most relevant to your situation. This may include keeping track of tax policy changes for individuals, tax policy changes for small business, tax policy changes for corporations, and international tax policy changes.
- Understand how pending tax changes will impact operations, tax management and recordkeeping requirements.
- Leverage tax industry experts to get accurate information and insights on tax policy changes.