From its origins as a response to client inquiries on how transactions would affect their tax returns, tax planning has morphed into a year-round enterprise for practitioners, as well as a solid builder of client loyalty.Yet it's still a relatively well-kept secret, according to Jorge Olivarietta, senior product manager at Lacerte. "When a client comes in for tax prep, it's not just about inputting the information and creating a return," he said. "An accountant's job is to take the inputs, and make sure that what the customer is planning on doing is the right action. At the end of the day, you want to come as close to zero liability as possible."

It's not uncommon to read stories about companies that stretch the rules to avoid paying taxes. But currently there's a tax that many companies are already paying, though at present they have no legal obligation to do so.The Streamlined Sales Tax Program, the tax designed to recoup perceived lost state tax revenues due to online and other out-of-state sales, is chugging along, even though federal legislation to institute it on a permanent basis appears to be standing still.

With the Democrats winning control of the U.S. House of Representatives and Senate, the tax legislative outlook has shifted to new priorities and concerns, according to Mel Schwarz, a partner in Grant Thornton’s National Tax Office.

Tax and financial products provider Thomson Tax & Accounting has bolstered its Fast-Tax print services to include Schedule K-1s for trusts and estates.

Business tax reform needs a bipartisan, national consensus, but is absolutely necessary for the country to remain competitive in a global economy, according to Senate Finance Committee chair Chuck Grassley, R-Iowa."I think the consensus is there that the business tax system is in desperate need of reform," he told a recent hearing on the business tax system. "But we need to start building consensus on how to do it."

The use of private annuities to shelter gain on appreciated property has come to an abrupt halt, if the Internal Revenue Service has its way.Whether the IRS can withstand pressure to withdraw or substantially amend new proposed regs before they are made final, or whether the final regs can withstand judicial challenge, remains to be seen. For now, however, effective for annuity transactions after Oct. 18, 2006 (subject to a relatively brief six-month "estate planning" exception), the division between "old rule" and "new rule" is dramatic.

There are a number of interesting trends with regard to technology that I expect will have a very significant impact in how firms operate over the next couple of years. One is a direct outgrowth of firms going paperless, focusing on document management, and studying outsourcing. It is the automation of workflow. The motivating factors for this are increased efficiency and better control of the work products and the driving forces are technological advances. But I would like to add a caution. Automating workflow shouldn’t simply be viewed as a technological overlay on the process and procedures of the firm. It is much more than that.