Successful filing of electronic tax returns, as well as meeting the accounting requirements of FIN 48, are the biggest challenges facing corporate tax professionals in 2007, according to an informal survey by Thomson Tax & Accounting.
Nearly one third of more than 700 tax professionals at a recent TTA user conference responded to a survey gauging their most pressing concerns. The majority said e-filing is their greatest challenge -- particularly with regard to international, federal and state returns as well as the handling of consolidated returns, partnerships and paperless processing.
Brian Peccarelli, executive vice president and general manager of Corporate Software & Services, said that while many companies successfully e-filed in 2006,switching from filing stacks of paper returns to a completely different methodology is still a major undertaking.
The second most pressing challenge mentioned was incorporating the requirements of the Financial Accounting Standard Board’s Interpretation No. 48. The clarification was issued to address the gray areas in reporting tax positions taken, or expected to be taken, in a tax return.
Steven Mendelsohn, senior vice president of income tax within the corporate software division said that for tax professionals, it comes down to “finding ways to ease the guesswork of FIN 48 compliance.” He suggested that professionals seek training on e-filing readiness and FIN 48, and start the reporting process well in advance of deadlines.
All of the survey respondents were current users of Thomson Tax & Accounting’s InSource product line.
