BDO USA
Though tax executives continue to grapple with federal tax reform, the potential for a market downturn dominates their near-term agenda, according to BDO’s 2019 Tax Outlook Survey. Of the 150 tax executives surveyed at companies across the country, more than a quarter (27 percent) expect the economy to remain on the upswing for one to two years before beginning to constrict.
That's nearly 1-in-4 tax execs that believe the economy will remain on the upswing for just 1-2 more years. With a market downturn likely drawing closer, now is the time for businesses to optimize their total tax liability.
Matthew Becker, Managing Partner in BDO’s National Tax Office, is available to discuss this as well as other key findings from the survey:
- U.S. federal tax reform and state and local tax changes are equally weighing on tax execs. In fact, 46% of tax execs say adjusting to the federal tax code will be their biggest challenge this year.
- Following the U.S. Supreme Court’s watershed South Dakota v. Wayfair decision in 2018, 65% of tax execs have reevaluated their companies’ sales and use tax compliance.
- As the tax function evolves, tax professionals’ digital and soft skills are deemed equally important as their technical tax prowess. Among top tech skills for tax professionals in 2019, 32% of survey respondents cite quickly adapting to tech changes, while 30% say the most important skill is the ability to communicate tax strategies to broader business stakeholders.
- Automated processes are in high demand - 55% of tax executives are focusing on automating processes in 2019, while 24% are implementing data analytics.
- Tax professionals have a long way to go to understanding their total tax liability, with only 58% of survey respondents citing a “high” understanding of their companies’ total tax liability and 32% saying their understanding is “moderate”.