Key Takeaways and Tax Planning Points:

To prepare for changes in tax regulations, boards should:

• Confer with management to review financial models – e.g., changes in tax rates, deductions, credits, and exclusions.
• Stay informed on tax policy changes and reviewing with management to understand realistic scenarios.
• Consider the possibility of a divided government scenario, which may result in sluggish legislative activity and short-term extenders for expiring provisions.
• Understand the organization's tax risk management policies, focusing on compliance, reporting, and consulting to assess how changes in tax law or procedure could affect the risk profile.
• Get regular updates on tax policy changes, especially after the election, to anticipate potential impacts on international and global tax strategies.
• Ensure that tax policy aligns with the firm's social policies, particularly in relation to ESG policies and tax credits promoting certain behaviors or investments.
• Consult with external tax advisors to stay abreast of tax policy changes and ensure coordination with the organization's internal tax team.

Resources:

• 2024 BDO Tax Strategist Survey