A strong team, a clear vision, and an effective program. (President's Corner).

The fall has been an exceedingly busy and productive time for TEI. October brought not only the Institute's 56th Annual Conference and the selection of a new Executive Director, but also unanticipated work on pending economic stimulus legislation. November saw the Institute not only appoint a new General Counsel and Director of Tax Affairs, but also take up technical issues as diverse as INDOPCO and the Internet Tax Freedom Act. And December featured not only the Institute's annual liaison meetings with Canadian officials, but also a joint conference on tax simplification and outstanding educational offerings on basic international taxation and the new U.S.-U.K. tax treaty. Complementing these myriad activities were the efforts of members, the association, and the tax community as a whole to move forward in the aftermath of the September 11 attacks and the subsequent anthrax scare.

A Strong Management Team

Perhaps the most important events of the year was the selection of a new management team for the Institute. Succession planning is an important task for all organizations, and outgoing Executive Director Mike Murphy worked tirelessly with the volunteer leadership to help TEI achieve its objective of a smooth transition. During the Annual Conference in Boston, the Board of Directors unanimously agreed that Timothy McCormally, TEI's longtime General Counsel, should succeed Mike Murphy as Executive Director. Timothy's tireless efforts in TEI's behalf during the past two decades are the stuff of legend, and I was exceedingly proud to announce his appointment at the conference's Tuesday night banquet. I was also gratified, as I know Timothy and his wife, Judy, were, by the enthusiastic response the announcement received, not only within TEI but throughout the tax community. Having worked closely with Mike Murphy for the past 10 years and having become the organization's institutional memory long before that, Timothy is well qualified to lead the organization in 2002 and beyond. I look forward to working with him in the months and years to come.

Timothy's appointment created a vacancy at the top of TEI's legal staff, and after a long search, the Institute named Fred Murray to become its new General Counsel and Director of Tax Affairs. Fred's credentials are detailed in a story elsewhere in this issue, but I would be remiss if I did not at least mention not only his extensive law and accounting firm experience, but also his tenure with the IRS and, most recently, the National Foreign Trade Council. In this last position in particular, Fred honed his consensus-building skills and his tax acumen, and worked effectively with many TEI members as well as our staff. On the personal side of things, Fred is a marathoner, which is not only enviable but should serve him well as the Institute plans for the long haul.

No one or two individuals--in the membership or on the staff--can ensure the future of an organization such as TEI. Thus, while Timothy and Fred will help shape the Institute's vision and its future, they cannot do it on their own. As association veterans of long standing, they know that. They also know (as all good managers know) that their success or failure will depend on their ability to inspire, to lead, and work effectively with the Institute's members and staff. Their track records to date give every indication that their skills will complement each other's as well as those of Deborah Gaffney, Debbie Giesey, and the other members of the staff. I personally envision great things ahead for TEI with our new team installed. They will clearly help TEI move the yardsticks forward!

Annual Conference

The Annual Conference in Boston was quite unlike any other Institute meeting. As reported in my last column, in the days and weeks after September 11 TEI considered cancelling the conference. In the final analysis, though, we concluded that although the seriousness and solemnity of our times may change how we live, they did not end our responsibilities to our companies, our colleagues, and our profession. We decided to go forward because neither the attacks nor the economic downturn suspended our need to network and to learn. To be sure, Boston was the smallest conference we have had in quite some time, but what we lacked in size, we made up in excellence and enthusiasm. The only persistent complaint I heard was how difficult it was to choose between all the excellent concurrent sessions. Although I sympathized with them, it was precisely the type of criticism I like to hear.

On behalf of the Board of Directors, I thank each and every member and guest who came to came to Boston. I also thank the firms that agreed to become conference sponsors. Based on the feedback we received, the sponsorship initiative was a success. Sponsors had an opportunity to demonstrate their products and services, and conference registrants could "take or leave" the exhibits (that is to say, there was no hard sell). Special recognition is due our Platinum sponsors--Ernst & Young, KPMG, and McKee Nelson--for their substantial contributions to the Institute.

One of the highlights of the conference for me was the privilege of presenting the Institute's Honorary Membership Award to three' past presidents: Paul Cherecwich, Bob Perlman, and Dave Burn. In their remarks, all three gentlemen spoke with feeling of their affection for TEI and how the organization enriched their professional careers.

A full report on Annual Conference, including a discussion of TEI's donations to September 11-related charities (which were approved by the Board in Boston), is printed in this issue, along with photographic highlights. On a personal note, I want to note that both my mother and mother-in-law were in attendance in Boston, and to express thanks for all the courtesies extended to them.

Simplification Conference: Another Step Forward

Like the weather, people often talk about simplification, but are unable to do anything about it. On December 4, TEI tried to break the pattern. On that day, the Institute convened a joint simplification conference on Capitol Hill, which featured presentations by key committee staffers, Treasury and IRS officials, well-respected practitioners and academics, and the Chairman of the House Committee on Ways and Means. I was privileged to open the conference, and I commend to you the story on the conference that is included in this issue. I want to take this occasion to thank Lindy Paull and the other Joint Committee on Taxation staff members, as well as our colleagues in the AICPA Tax Division (whose Tax Executive Committee is chaired by Pam Pecarich) and ABA Tax Section (whose chair is Dick Lipton) for their unstinting efforts to make the conference a success. My predecessor, Betty Wilson, also deserves recognition for her leadership, as do Ray Rossi and Rick Millerick, who participated in the conference. Finally, Mary Lou Fahey and Timothy McCormally served on the planning committee for the joint conference.

I wish I could say the likelihood of meaningful tax simplification was great, but given the current budget environment, that would be an overstatement. Progress will probably be slow and incremental at best. But I believe it will come. Please be assured that at every opportunity TEI will remind members of Congress and tax policy leaders at the Treasury Department that there is a moral imperative to simplify the tax law and, further, will focus efforts on how that objective can be achieved.

International Advocacy Efforts

If you need evidence that TEI is a transnational organization, scan the contents of this issue of The Tax Executive. Thus, while TEI's U.S. committees continue to press for economic stimulus legislation, clarification of the INDOPCO standard, and the Internet Tax Freedom Act, the bulk of this issue is devoted to Canadian subjects. The prodigious output of our Canadian committees (in the form of both liaison meeting agendas and technical submissions) is a testament to the breadth and depth of the Institute's Region I.

I want to thank David Penney and Martina Krummen, who respectively chair the Canadian Income and Commodity Tax Committees, and Alan Wheable, our Vice President-Canadian Affairs, for their stewardship of the Institute's relationship with the Canadian Department of Finance and Canada Customs and Revenue Agency. Because of a conflict with the simplification conference, I was not able to attend the CCRA meetings, but the meetings with the Finance Department convinced me that there is no lack of richness in the TEI's Canadian Chapters. My thanks to all who made the meetings a success.

In Closing

I regret to inform you that David Bernard, the IRS's Research Tax Credit Specialist, died on December 11 of injuries sustained in the September 11 attack on the World Trade Center. I extend condolences to his family and IRS colleagues, as well as the families and co-workers of the New York State employees who were killed. These deaths, combined with those of the three TEI members--David Grimmer, Manny Lopez, and Arthur Scullin--who also died in the attack, underscore how deeply the tax community was touched by the events of September 11.

Clearly, 2001 brought greater challenges and losses than any of us could have imagined. Nevertheless, the world's response to the events of September 11 have been at once invigorating and inspiring. May the holiday season bring you peace and an opportunity to reflect on the good things in life, and may the new year bring you health, contentment, and professional fulfillment.

Robert L. Ashby International President