Tax 2021: Threats and Opportunities.

• Date: 01 November 2020
• Author: Simons, Tad

The idea that every problem contains the seed of its own solution has become such a universal business cliche that few people stop to think why this idea rings so appealingly true.

The reason is survival. When presented with a problem, human beings are hardwired to come up with a solution, because if they don't, they might die. It's as simple as that. Our species has learned, through painful trial and error, that unsolved problems can be extremely dangerous.

As 2021 approaches, there appear to be many brewing threats--problems in desperate need of a solution. But instead of dwelling on the dangers ahead, tax professionals may find it useful to start looking for silver linings of opportunity in the storm clouds of uncertainty on the horizon.

Here are a few ideas to get you started.

Threat: No matter how clear your crystal ball is, the economic outlook for 2021 is anyone's guess. No one really knows what will happen, and the people who say they do are kidding themselves.

Opportunity: Because the future is so fluid, there is ample opportunity in 2021 for tax departments to step up and provide C-level execs with the kind of forward-looking analyses they need more than ever right now. Scenario planning, predictive modeling, and advanced analytics can provide some measure of assurance that whatever happens in 2021, the organization is prepared.

Threat: A lingering recession/depression persists well into 2021 and may stretch many businesses to the breaking point.

Opportunity: Now is the time to prove...