Spotlight on National Financial Services Tax Leader Simcha David

Our Spotlight series highlights the careers and lives of tax professionals around the world. This week’s Spotlight is on Simcha David, a tax attorney who is a partner at EisnerAmper’s Eisner Advisory Group in New York City.

David’s practice focuses on financial services and investment management entities, and he advises on all aspects of tax planning and compliance for financial services firms and their related entities. His clients include a wide variety of asset classes, including hedge funds, private equity funds, and funds of funds.

David and his wife are the parents of five sons and a daughter. He is an orthodox Jew and an active participant in community organizations, and he served as president of his synagogue for over nine years.

What’s your official title and what does it mean? My official title is partner-in-charge of the national financial services tax group. In addition to advising my own clients, I’m also the leader of the financial services tax practice, which means I’m driving strategic efforts related to planning, budgeting, financial metrics, resource management, education, and technology. Most importantly, I feel that it’s my responsibility to promote a team-based mentality so that every one of our team members is supported and able to thrive in their role.

Free time: book, audiobook, or podcast? Definitely a book, generally in the fantasy genre. I share this preference with my youngest son, who is a big reader, so there are always books floating around the house for me to pick up.

Tax is a huge subject. What’s your area of special interest? I’m focused on all matters relating to hedge funds, private equity funds, venture capital funds, funds of funds (including their general partner entities), and management companies. This area generally requires a good working knowledge of partnership taxation, in addition to an understanding of the issues relating to US international reporting, as well as state and local tax issues.

What’s the last movie or show that you watched and loved (DVD, Netflix, or in the theater)? I’m a big Marvel buff, so the last movie I watched was “Black Panther: Wakanda Forever.”

What college did you attend and what did you study? I received my bachelor’s degree in accounting from Touro University and passed the CPA exam prior to finishing the 150 credit hour requirement. Five years into my accounting career, I decided to go back to school during the evenings to pursue a law degree at Hofstra University.

Go-to pick-me-up: Coffee or tea? Coffee. Grande, cold brew with a small amount of milk at 3 p.m.

What’s the best tax or financial advice that anyone ever gave you? The best financial advice I’ve received was to buy a house. My home has been my best investment by far.

If you weren’t working in the tax profession, what would your dream job be? Teaching. During the pandemic, virtual teaching was a real challenge, as it’s hard to get a feel for what the students are finding valuable and interesting. If I wasn’t working in the tax field, I’d prefer to share my knowledge in a physical classroom setting.

If you had the opportunity to make one change in the tax world—an extra credit, a disallowed deduction, whatever—what would it be? I would change the rules around single informational tax form filing. Timeline rules surrounding these forms are convoluted, and anyone can easily trip into these penalties. Missing a filing deadline could cost a taxpayer around $10,000 per form. I believe that the tax system should be fair, and this is simply just another way to raise revenue. High penalties should be reserved for situations where intent to deceive has been proven.

Favorite food, snack, or candy during tax season or other busy time? Pretzels. I enjoy all types, but my particular favorite is sourdough pretzels.

What tax news or move made the most impact on your practice or clients this past year? This year, the pass-through entity tax made the biggest impact on my work with clients. Understanding the nuances of each state that enacted the tax has been important, particularly with regard to getting the election, ensuring the estimated tax payments and filings are correct, and the complexities surrounding the impact of a state’s PTET on a resident of another state.

Last year, K-2/K-3 had significant impact on our practice, as it created chaos for tax professionals. With stress levels among accounting professionals already high due to the Covid-19 pandemic and great resignation, the K-2/K-3 added 25% to 30% of work that needed to be done during the traditional busy seasons.

If you received a big tax refund check right now, what would you do with it? I would go on a vacation with my wife. In a year where Passover and busy season coincide, I find it difficult to chip in as much as I should.

You can find out more about David on Linkedin.

You can learn more about David’s work at his firm, EisnerAmper, on its website.