Hardly a ‘Back Office’ Function—Logan Gans of Holland & Knight

What is the most common misperception about the tax profession, and how are you working to change it?

The most common misperception is that it’s a “back office” function that can be entirely replaced with tax preparation software and automation. While consumer tax preparation software may be useful for some individuals who just have to report wages and US investment income, it becomes less effective for taxpayers who have interests in more complicated assets, such as foreign trusts or foreign companies, which need to be critically analyzed for proper US tax classification. Such taxpayers could be subject to substantial penalties for failure to file certain US international information reporting forms that software can easily miss.

I work to change this misperception by education. Whenever I present at a continuing education seminar on international tax, I always try to include at least a couple of reporting issues that are often overlooked. While software and automation have their roles, they cannot replace critical thinking, knowledge of the latest IRS guidance, and years of experience. Only an experienced tax professional can provide the requisite advice for a client to analyze their holdings and potentially avoid penalties or other issues that can arise from underestimating tax as a “back office” issue.

This article does not necessarily reflect the opinion of The Bureau of National Affairs, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Logan E. Gans is a partner in the Miami office of Holland & Knight LLP and represents clients on US federal tax, international tax, and state and local tax matters.