USA: Understanding and Communicating Tax Law Changes in Analytics and Visualisation
With the constant change in the global business environment, tax functions are continuously asked to “do more with less.”
With the constant change in the global business environment, tax functions are continuously asked to “do more with less.” To comply with new reporting requirements, many companies are utilizing older aftermarket or “bolt-on” solutions and spreadsheets to manually aggregate data and perform calculations. As changes in tax reporting requirements multiply, these problems are exacerbated.
As an example, the CARES Act contains additional reporting requirements in order for companies to carry back net operating losses (“NOLs”). Under the Act, unless a company makes an irrevocable election not to carry back NOLs, it must provide reporting for tax years beginning after 31 December 2017, and before 1 January 2021, for each of the five years preceding the year of the loss. While this change provides potential opportunities for companies to access cash via tentative tax refunds, it also puts tax departments in a bind. In order to comply with this provision, tax departments are forced to spend large amounts of time collecting and manipulating data.
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