Watch Related Videos
comments
The outsourcing of corporate tax compliance has become a huge part of the American industry. It is increasingly difficult for in-house tax accountants or attorneys to stay current on the tax code and corporate compliance of income tax withholding and requirements. Therefore, many companies outsource these tasks.
Corporate Tax Compliance Outsourcing
This term means hiring an outside firm to take care of tax law compliance. Rather than hiring tax experts themselves, a company has a bookkeeping staff in-house and hires a specialty firm that employs tax compliance experts to handling the complex issues of taxation.
Reasons for Outsourcing Corporate Tax Compliance
A firm may decide to outsource corporate tax compliance if they operate in a global marketplace with many different tax codes. If a company operates across states or other tax districts, hiring specialists may also make sense for them.
Many specialty compliance firms offer immunity to a company for any errors in tax compliance, and offer expert representation at an audit. These compliance firms also offer corporate tax return review, responses to any IRS notices, compliance with unclaimed property laws, and all Sarbanes-Oxley document compliance.
Often corporations decide that letting an outside firm take these responsibilities makes sense.
