61: Keeping Up with New Tax Technology Amid the Changing Tax Code

While the subject of partnerships has brought Kelly many headaches, many tax professionals are drawn to them because of their notorious detail and nuance. It may come as no surprise that new tax technology innovations often find their way into the world of partnerships before other areas of the tax practice. As the complexity of business and partnerships 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 service industry leader. He’s been in practice for over 25 years, and he’s heavily involved with promoting the firm’s partnership tax technology program. 

Listen to Kelly and Jerry talk about tax technology and how it factors in to 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 out the details from investments to real estate to K-1s to 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 advancements in artificial intelligence and new software programs are changing the game as well.
• How do clients respond to changing tax technology, 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 approach the changing industry climate while still remaining focused on technology and innovation?
• When it comes to partnership tax, what pieces are notably more streamlined since implementing technology? Jerry says it’s the allocations that 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 with the increasing complexity of the tax code over the years? In Jerry’s view, he finds it exciting. For instance, he reminds listeners, each state has individual laws and nuances when it comes to taxes, and those laws change just as frequently as the 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 Phillips Erb:

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 that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

Links mentioned:

Kelly’s Website – Taxgirl

Jerry’s Bloomber Tax Article -- Tax Technology for Investment Partnerships

Jerry’s Linked In -- Jerry Musi

Email Jerry -- jerrymusi@rsmus.com