This is a newsletter from
J.D. Choi of
Tax Technologies, Inc. to tax
professionals whose interests are improving the tax management processes.
Table of Contents
- Web-based Tax Data Warehouse
- Foreign Tax Data Collection
1. Web-based Tax Data Warehouse »
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We have previously reported that, we have created a web based tax application, which is the centerpiece of
tax data warehouse. After the report, we have received a number of inquiries about the product and, consequently,
we have shown our application to handful of corporate tax directors and chief information officers.
The common theme of the response was that we have actually demonstrated that the web technology can be
effectively employed in creating tax data warehouse with relatively low cost in comparison to the traditional
"Tax Process Reengineering" approach. In some cases, we have suggested that fully implemented web application,
with client data populated, based on our approach would cost less than one fourth of the traditional tax
process reengineering cost without including the actual implementation.
They also agreed with us that the content we have incorporated in the application are the crucial
elements for all tax computations, creating a basis for the development of all tax calculations. Although
the subject of the application is international tax, the audiences seem to understand that the same data
elements are required for federal and state tax returns. The audience also understood that the mechanics of
application could easily be adapted to federal and state returns as well.
We have continued the development after receiving such positive responses by the target audience. In
fact we have created parallel products on two most popular web development platforms. Of course, we have
figured out that some mechanism that work on one platform may not work on the other platform and vice
versa. However, our audience could not tell the difference between the application developed on one
platform versus the other, indicating that the choice of development platform may not be as important as
the design and the content itself.
2. Foreign Tax Data Collection »
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Foreign Tax Data Collection Packages
During the month of April, we have received numerous requests for foreign tax data collection packages
and received very favorable response from the people who reviewed the packages. (Maybe because it was
free?) Encouraged by the positive responses, we have continued our development and completed a data
collection package to support the compliance of Form 8865.
Due to the proprietary nature of the content for Controlled Foreign Partnership Reporting Package, we
have decided not to give it away. However, it will be shown to the companies requesting a demo of the
product and distributed to our current clients free of charge.
International Tax Planning Database
During the month of April, TTI had provided Arthur Andersen with data specifications to extract tax
planning data from AACTS IC database. The script for the data extraction is scheduled to be on June release
of AACTS IC CD. Upon release, we are planning to create the international tax planning product for AACTS IC
in cooperation with AACTS.
Client service
Compliance Support
We have completed our engagement to support ITMS/FTMS client. At the conclusion of the engagement, we
have summarized the tax process improvement suggestions, based on our experience during the compliance
engagement. Since we have worked very closely with client data as part of their compliance process,
providing the process analysis and improvement suggestions were relevant, credible and realistic.
SAP Configuration and Data Definition
We have worked with a client to assist them with their foreign site SAP configuration. The client had
foreign subsidiaries that had SAP installation. However, like many companies dealing with foreign
subsidiaries with separate SAP installations, the foreign site SAP installation was not configured
adequately to support US tax compliance reporting. We went to foreign site with our client and diagnosed
the current configuration, drafted modification requirements for the SAP and provided the client with a
report showing data definition for US tax compliance and how SAP can be configured to produce the data.
Independent Tax Software Evaluation
During the month of April, we have received a few requests for independent tax software evaluations. The
companies that are going through the transition of changing tax software appear to realize that the vendor
presentations may not be entirely relied on. The companies also recognize that the choice tax software
should correspond with current and future data structure and the tax process of the company, and therefore,
should avoid incurring large implementation cost. Upon request, we have proposed independent review of
benchmarking study based on client's data.
Our website
Come and use our web site! We have added tax forms in our download page. The available forms and
instructions are, Forms 5471, 8865 and 1118. The forms are in PDF format. We will continue to add other
useful stuff in our download page. So, check them often and if you would like to see something added to
our website, please write to us using our feedback form.
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Regards,
J.D. Choi
CEO, Tax Technologies, Inc.
201-387-9451
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