Role Playing Teaches Early Career Tax Pros How to Take the Heat

Imagine learning to play golf just by reading a Tiger Woods biography or studying a rule book. No one can master the game solely through the information on the page—stepping onto the course and playing the game is a must.

Mastering the information found in tax treatises, regulations, and articles is a prerequisite for any job in the tax field, as is communicating that information clearly and precisely. But to really master the craft of tax, tax pros must learn how to communicate effectively in live settings, delivering good, bad, and complicated news.

This skill is best honed by leading live meetings again and again, incorporating time for feedback. To accelerate growth, especially around communication, simulation training has proven to be effective.

My tax team curates, presents, and communicates intricate tax concepts through simulation training. A designated person presents a topic and sets the scenario, and the tax team engages in role playing as the intended audience. The real magic unfolds in the subsequent constructive feedback session.

Here are three examples that highlight the value of this approach for early career tax professionals:

Example 1: On a given morning, the IRS releases new foreign tax credits regulations with a substantial impact on the business. Later that day, a member of the tax team—let’s call him Marc—discusses these regulations with his team, which takes on the role of the board of directors in a simulation. Marc delivers a high-level presentation but is bogged down by the myriad technical details.

The collective feedback underscores the importance of simplifying explanations, urging a focus on key business impacts like cash flow or effective tax rate. As Albert Einstein wisely observed, “If you can’t explain it simply, you don’t understand it well enough.”

Example 2: The internal auditing department questions a prior period’s transfer pricing error. A member of the tax team—let’s call her Sarah—faces the auditors (a role played by the tax team) in a simulation. The team praises Sarah’s clarity in explaining what happened, the controls in place, and the plan for remediation.

But the team notes Sarah’s lack of confidence in preventing a recurrence. The feedback reflects Maya Angelou’s wisdom: “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

Example 3: Faced with an upset divisional chief financial officer seeking an explanation as to why New York sales tax wasn’t charged to customers, the tax team steps into the role of the CFO. A member of the team—let’s call her Heather—outlines how she diligently tracked sales tax legislation, informed the billing department, and updated members of the CFO’s team when she identified the applicability of the sales tax.

The simulated CFO team poses detailed questions about the process, and Heather presents emails as evidence of her proactive communication. The feedback from this simulation imparts a crucial lesson in leadership and accountability.

While Heather provided the necessary information, leadership entails ensuring that others are aware of what needs to happen, and if something goes awry, the responsibility falls on the leader.

Information Versus Experience

It’s important to distinguish knowledge gained from information versus knowledge gained from experience. Mastery of information can’t replace the insights derived from practical experience. Simulation training proves valuable, pushing participants to confront discomfort and fostering personal development through challenging experiences.

It also functions as a platform for junior staff to engage with the broader tax team, allowing wisdom to flow downward, creating an energizing effect and lively culture. In these training sessions, individuals learn from one another by taking on different roles within the tax department. Participants also have the opportunity to understand the perspective of tax team customers.

Mike Tyson famously said, “Everyone has a plan until they get punched in the face.” The future is inherently unpredictable. Engaging in scenario simulations prepares early career talent to deftly navigate challenges when they inevitably arise and empowers them to proactively contribute value.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Jared Dunkin is vice president of tax and senior tax counsel of FTI Consulting Inc., a publicly traded global business advisory firm.

Write for Us: Author Guidelines