New year brings forth a blizzard of activity; TEI can help you stay on the road.

• Author: Glennie, J.A.
• Position: President's Corner

If tax executives were ever inclined to think that 2003 would be a quiet year on the tax front, the past two months would have disabused us of that notion. Even before President Bush proposed an unexpectedly large tax cut, we were facing a blizzard of tax developments from Washington: Proposed regulations on the capitalization of expenses and new rules on tax shelters were near the top of the list, followed by revamped administrative processes such as the LMSB Division's new "limited issue focused examination" program. Also demanding attention was guidance from an unfamiliar source to many tax executives--the Securities and Exchange Commission, whose mid-December release of proposed auditor independence rules set off a flurry of activity. Finally, the end of 2002 brought new Canadian rules on foreign investment entities, as well as dire reports from the States, whose financial straits may prompt reduced services, enhanced enforcement activities from tax auditors, and tax increases.

The new year has only caused the rush of developments to accelerate. The President's budget proposals--the hallmark of which is a dividend exclusion--have taken center stage, but competing proposals from members of Congress also require scrutiny. The promise of international tax reform, tax and pension simplification, and a multitude of other proposals (including several relating to inversions, earnings stripping, and tax shelters) are now in play. But these initiatives are only the tip of the tax iceberg. The SEC has weighed a plethora of comments on auditor independence and promulgated final rules bringing greater (but not total) clarity to the questions of whether, when, and what type of tax services an accounting firm can perform for its audit clients. The IRS Oversight Board has held hearings on how the IRS can best meet its challenges. The President has appointed a new Secretary of the Treasury, and the Senate will soon take up the nomination of a new IRS Commissioner. If ever there was a time for tax executives to be able to multi-task, it's 2003.

That's where TEI can help. From its educational offerings and networking opportunities to its liaison meetings and technical submissions, TEI has been involved in all these matters. Consider the following:

* Dividend Exclusion Proposal. On the same day the Treasury Department released the details of the President's dividend proposal, TEI arranged for a conference call involving top Treasury officials and the...