Navigating the Future of Tax Solutions: Key Insights from Our Recent Conference

As the landscape of tax information reporting and withholding  continues to evolve, the Tax Solution business at S&P Global hosted a conference on June 4th in New York. The conference was a dynamic gathering of both internal and external industry leaders, fostering insightful discussions, valuable networking, and strategic collaborations.  Attendees were able to participate in a Q&A session with the Internal Revenue Service (IRS), learn more about digital asset reporting and hear form our own experts regarding best practices for operational taxes.  

 Here are some key insights to share.

• Tax Reporting – The past reporting season has taught us many lessons, particularly in the areas of data reconciliation and reclassification. As we move forward, it is crucial to emphasize the importance of these processes. Best practices highlighted during the Conference included implementing robust data management systems and ensuring regular audits to identify discrepancies early. By learning from past experiences, organizations can enhance their tax reporting accuracy and efficiency, ultimately reducing the risk of penalties. In addition, we discussed the importance of People and Process.  Mitigating key man dependencies, utilizing external or internal Small to Medium Enterprises (SMEs), documenting roles, continuous education and training are all  critical in building out compliant tax operations.  As part of the analysis of people, we discussed the importance of performing a review of the existing target operating model for tax operations and determining the benefits of outsourcing versus standing up a standing up a Full-time equivalent (FTE) internally.
• Tax Reporting and Due Diligence for Digital Assets - With the rise of digital assets, tax reporting has become more complex. Our discussions centred around the key requirements for digital assets, particularly considering the upcoming Form 1099-DA requirements in the US and the Organisation for Economic Co-operation and Development (OECD)'s introduction of the Crypto Asset Reporting Framework (CARF). Understanding cost-basis calculations and due diligence is essential for compliance. As digital assets continue to gain traction, staying informed about regulatory changes and best practices will be vital for tax professionals.
• Current priorities at the IRS - highlight of the event was a timely discussion with a guest speaker from the IRS who shared insights on current priority issues at the IRS. Topics included enforcement trends,  and upcoming regulatory initiatives that could impact tax information reporting and withholding. One of the topics most discussed is the proposed IRC 899.  As part of the recently passed “Big, Beautiful Bill” , the bill proposes withholding rate changes on certain payments to “applicable persons” and entities in discriminatory foreign countries.  This session underscored the need for tax professionals to stay abreast of IRS developments, as proactive engagement can help organizations navigate potential challenges and align their strategies with regulatory.
• The Tax Operational Ecosystem - Building a resilient and scalable tax function is essential in today’s dynamic environment. Strategies discussed included the integration of technology to streamline processes and enhance data accuracy. S&P Global was thrilled to announce our new platform which provides a full end to end ecosystem. The new revamp creates a holistic tax platform with end-to-end workflows and fully integrates our due diligence, payment processing, withholding, reconciliation, tax reclaims and tax reporting modules into a common user interface. The new platform expands our existing offerings to include additional due diligence coverage to other jurisdictions outside of the US.

Conclusion

The insights shared during our Tax Solutions Conference highlight the importance of adaptability and foresight in tax operations.  reporting. By learning from past experiences, staying informed about regulatory changes, and leveraging technology, tax professionals can build a robust operational ecosystem that meets the demands of an ever-evolving landscape. As we look ahead, collaboration and continuous improvement will be key to navigating the complexities of tax solutions successfully. 

Learn more about Tax Solutions Ecosystem and our platform revamp, along with our offerings to comply with and Digital Assets Due Diligence & Information Reporting