Keeping up with New Tax Technology Amid the Changing Tax Code

While partnerships have given Kelly many headaches, many tax professionals are drawn to them because of their notorious detail and nuance. It may not be surprising that new tax technology innovations often enter the world of partnerships before other areas of tax practice. As business and partnership complexity grows, so does the challenge of tax compliance. For this reason, tax professionals are excited about the boom of technology and data tools in the field.

Tax professionals are staying ahead of the ever-changing tax code by embracing innovative tax technology, from artificial intelligence to new, more streamlined iterations of Excel.

On today’s episode of the Taxgirl podcast, Kelly is joined by Jerry Musi to chat about how tax technology can help with the ever-growing puzzle of tax compliance. Jerry recently penned an article for Bloomberg Tax and is a Tax Partner at RSM US LLP specializing in asset management funds. He is also the RSM US LLP national tax financial services industry leader. He’s been in practice for over 25 years and is heavily involved in promoting the firm’s partnership tax technology program.

Listen to Kelly and Jerry talk about tax technology and how it factors into partnership tax conversations:

• The combo of tax and technology can feel overwhelming since both fields can be so complex. How did Jerry get into both fields to begin with, and how did he learn to combine them harmoniously?
• What does a modern private equity fund look like today, and how have they changed over time? Jerry shares, in plain English, what these funds are and how technology is playing a part in their management.
• LLCs and LPs can often go hand in hand, so how does everything intertwine together in the tax compliance world? Jerry helps parse the details, from investments and real estate to Schedules K-1, data, and technology.
• For such complex concepts, what technological tools are available to practitioners? While Excel has always been a staple in every tax professional’s toolkit, Jerry shares how advances in artificial intelligence and new software programs are changing the game.
• How do clients respond to changing tax technology, and how are other partners at the firm reacting? Jerry says the response has been overwhelmingly positive and receptive.
• The tax world is always changing, so how do professionals like Jerry navigate the changing industry climate while staying focused on technology and innovation?
• When it comes to partnership tax, what pieces are notably more streamlined since implementing technology? Jerry says allocations often give practitioners the most headaches, but with AI and state-of-the-art tax software, the process is significantly less hairy and more efficient.
• Tax technology aside, does Jerry feel the tax profession is more exciting or more frustrating as the tax code has grown more complex over the years? In Jerry’s view, he finds it exciting. For instance, he reminds listeners that each state has its own laws and nuances when it comes to taxes, and those laws change just as frequently as federal tax laws.
• While being “faster” is definitely a perk technology can offer tax professionals, Kelly and Jerry also talk about how smart use of technology can help professionals spend more time with clients and less time worrying about data entry.

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things she does is help folks out of tax jams and, hopefully, keep others from getting into them.

You can find out more about Kelly here, and you can follow her on Twitter, Facebook, Instagram, and LinkedIn.

To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app, click here.

Links:

Kelly’s Website: Taxgirl
Jerry’s Bloomberg Tax Article: Tax Technology for Investment Partnerships
Jerry’s Linked In: Jerry Musi
Email Jerry: jerry.musi@rsmus.com