Tax Risk Consulting
Efficient task risk management is crucial to the success and longevity of any organization. Golub, Senitt, Rosenberg & Co. provides tax risk consulting services that identify, evaluate, and develop strategies to mitigate risks that may impact the health, stability, and reputation of your business. Avoid potentially devastating consequences, such as financial penalties and legal repercussions by ensuring that you are addressing potential risks in a timely, appropriate manner.
Our tax risk consulting services strengthen risk management strategies, ensuring that you can achieve your business objections and function optimally while navigating risks facing your business.
Types Of Tax Risks
There are three primary types of tax risks: compliance risks, operational risks, and reputational risks. In our tax risk consulting services, we’ll identify the risks you face.
Compliance Risks
Filing Errors
These are mistakes that people make, such as calculation errors or entering data incorrecting. Such filing errors can result in inaccurate tax reporting, which can increase the scrutiny your business receives from tax authorities and can result in financial penalties.
Late/Incomplete Reporting
This is the failure to submit tax returns or other such documentation on time or in a complete manner. Such an error can lead to interest charges, penalties, and fines.
Incorrect Tax Classification
This is when a business does not accurately classify their transactions, expenses, or income. Incorrectly classifying such items can result in either underpayment or overpayment of taxes, as well as legal trouble and financial penalties.
Operational Risks
Changes In Tax Legislation
Tax laws and regulations are constantly changing. It’s crucial to be aware of changes that impact you and your business in order to ensure that you maintain compliance and avoid financial and legal trouble.
Cross-Border Transactions
Cross-border transactions may be subjected to varying tax laws and regulations, due to how they are international. Such transactions create tax risks, as tax requirements vary from country to country.
Transfer Pricing
Within a multinational corporation, the pricing of transactions is watched closely by tax authorities in order to ensure that they are in compliance with regulations. Transfer pricing can pose tax risks if managed incorrectly.
Reputational Risks
Tax Controversies
These controversies occur when tax authorities bring one’s tax practices or position into question. Such risks can result in audits, investigations, and litigation.
Aggressive Tax Planning
Tax planning in and of itself is smart and legal – however, aggressive tax planning can push the boundaries of the law, drawing the attention of tax authorities and potentially resulting in negative consequences, such as to one’s reputation or in the form of financial penalties.
Corporate Social Responsibility
Companies have a responsibility to maintain ethical behavior in all that they do. If their tax practices break their corporate social responsibility, this can damage their reputation.
Identifying Your Tax Risks
Here at GSR, in our tax risk consulting, we work with our clients to help them identify their tax risks and address risk factors. Regular risk assessment is key in order to manage your tax risk and keep your business positioned for success. With our extensive experience working with businesses of all sizes, from small businesses to multi-billion dollar corporations, you can trust us to guide you through the complexities of your business’s risks.
Identifying your tax risks includes both internal and external tax risk assessments. Internal assessments dive into your business’s internal processes, policies, and procedures. External assessments look at changes in tax laws and other such external factors that may affect your taxes.
Tax Risk Management Strategies
Golub, Senitt, Rosenberg & Co. provides tax risk consulting services that assess your tax risks, such as the probability of occurrence, financial impact, and reputational impact and uses this information in order to advise you on the best tax risk management practices for your business.
Strong internal controls are necessary in order to maintain integrity, prevent errors, deter fraud, and pass scrutiny. So too is developing comprehensive tax policies and procedures in order to reduce the likelihood of errors or non-compliance. As part of this, proper training and education about tax laws, rules, and regulation is essential in order to help employees understand their tax responsibilities and reduce risk.
Conducting regular risk assessments informs you as to your current risks and allows you to formulate a plan to ensure that you are proactive about potential and emerging risks. Compliance audits and proactive tax planning, as they sound, help you stay in compliance with tax laws while staying within legal boundaries with your tax planning.
Should you be contacted by tax authorities, it is crucial to be clear and transparent in your communication in order to ensure cooperation and reduce the likelihood of misunderstandings or disputes. Working with tax professionals, like GSR, helps you stay informed about tax law changes and manage your tax risks efficiently.
Comprehensive Tax Risk Consulting In The Greater LA Area
The best practice for effective tax risk management is working with experienced tax professionals that provide tax risk consulting, like the CPAs here at Golub, Senitt, Rosenberg & Co. We provide free 30 minute consultations in order to discuss your unique goals and how we can help you achieve them. Contact us today to learn more about our services.