Corporate tax challenges.

• Author: Heffes, Ellen M.
• Position: CORPORATE TAX

Results from a survey of 572 domestic tax leaders were released at Ernst & Young's Fourth Annual Domestic Tax Conference on June 2. Among their chief concerns were the potential for "reform" of deferral (38 percent); state tax increases (22 percent); and the ability to use net operating losses (NOL) credits (21 percent).

Eighty-two percent of those surveyed have taken steps to generate cash tax savings. Among the steps:

* Implementing an appropriate tax deferral strategy that postponed the immediate payment of cash taxes (38 percent);

* Increasing planning to reduce indirect taxes (37 percent);

* Filing for a refund of prior year(s) taxes due to a NOL (33 percent); and

* Filing an accounting method change that provided an opportunity to reduce the current year's taxes or to recoup past years' taxes (31 percent).

The combined focus on imminent tax issues and tight resources results in less time for...