Year end--a time to reflect, and look forward.

My last column was written on the eve of the Annual Conference in Scottsdale, and there has been a whirlwind of activity affecting TEI and tax executives since then. From the conference to three successful seminars, the Institute has maintained its tradition of providing in-house tax professionals with topnotch educational programs. Similarly, we've published comments on the accession of additional countries into the European Union, the shape of Canadian budget legislation, IRS regulations on cost-sharing, and a survey on the "environment" in which LMSB taxpayers and the IRS interact. Add in the successful liaison meetings with the Canadian government, and we have demonstrated--once again--that TEI is second to none in providing timely, practical, and constructive feedback to governmental authorities.

Beyond the Institute and its activities, tax executives have had to take the measure of court decisions potentially altering the law of nexus in the United States, grapple with the implications of FIN 48 (not only on their companies' financial statements but on their state, federal, and international tax audits), and--last but not least--prepare to deal with how the midterm elections in the United States will affect the tenor, tone, and content of future tax legislation, including most notably impending tax reform proposals.

Given the whirl of activity--perhaps in particular the challenging if not anxiety-causing effect of FIN 48's implementation--tax executives might be forgiven for not pausing to take the customary year-end look back and look forward. That said, I believe there is benefit in briefly reviewing both the accomplishments of the last few weeks and some of the challenges and opportunities that lie ahead.

Scottsdale Conference, Fall Seminars Demonstrate That TEI Remains First in Class

TEI members attending the 61st Annual Conference in late October not only were able to enjoy Arizona's hospitable weather but to address a raft of technical tax topics that--in all candor--reflect a tax environment that is anything but hospitable. At the same time, they were able to connect with colleagues from around the world and to leave Scottsdale better prepared to address the challenges that confront the 21st century tax department. A full report on the conference is included in this issue, but I want to take this opportunity to thank our three keynote speakers--IRS Commissioner Mark Everson, IRS Chief Counsel Donald Korb, and Harley Duncan of the Federation of Tax Administrators--for taking time out of their busy schedules to participate in the conference. Thanks also go to our committee chairs and members who planned and participated in the sessions, as well as to the practitioners who spoke and the firms that either staffed exhibits during the conference or hosted receptions.

Special mention should also be made of the two TEI members whom we honored in Scottsdale. Ralph Weiland of the Chicago Chapter was elected to Honorary Membership in recognition of his contributions to the Institute not only as Past International President, but as a long-time member and chair of both TEI's Federal and IRS Administrative Affairs Committees. Those members who had the pleasure of working with Ralph on committee work or merely interacting with him at chapter meetings and conferences will recall his always-upbeat approach and his never wavering response when you asked how he was doing: Fantastic! If ever there were a walking advertisement for the power of positive thinking, it is Ralph Weiland. On behalf of TEI, I congratulate him, and wish him and Betsy well.

Such good wishes are also directed toward Roger Wheeler of the Detroit Chapter and his wife Sharon. Roger received the President's Award in Scottsdale, not in recognition of any one thing, but in appreciation for his unstinting efforts in a whole variety of areas. As a member of the Board of Directors, the Executive Committee, the Federal Tax Committee, and Corporate Tax Management Committee, Roger was never one to raise his voice. Rather, he let his ideas speak for him and was quietly effective for more than two decades. When a promotion caused the chair of the Corporate Tax Management Committee to resign his position in the middle of the year, Roger stepped in without missing a beat, raising the profile of the committee at a time when management issues became ascendant. Roger also pushed the Institute to focus directly on the important issue of diversity, bringing to the topic both sensitivity and an appreciation for "the art of the doable."

One other individual bears mentioning, even though he was notable to attend the Scottsdale meeting. Mike Boyle preceded me as the Institute's president, and the Annual Conference would normally have afforded me the opportunity to praise Mike for his contributions to TEI. Mike was notable to be with us in Scottsdale owing to a decision to retire. We wish him well.

The Annual Conference was only the first of four successful programs TEI sponsored this fall. In November, more than 300 tax executives gathered in Chicago for a financial reporting seminar that proved so successful that the Institute scrambled to repeat the program in December. In my last column, I predicted this second program would also sell out. I was wrong in my prediction, not because we wrongly gauged our membership's appetite for education and networking on FAS 109, FIN 48, and other financial reporting topics, but because we were able to secure enough space to accommodate well over 500 registrants! Thus, in the course of less than 30 days, TEI was able to deliver high-quality educational content on financial reporting to nearly 900 tax executives.

Just a few days before the second FAS 109 program, TEI's State and Local Tax Committee hosted a two-day advanced planning seminar in San Diego, which featured top practitioners and compelling topics. Asking tax executives to break away from their offices and family obligations two weeks before Christmas is not the way to guarantee a large attendance and yet the program met our expectations and generated many compliments about its quality.

They say that success has many fathers, and if that's the case, these three seminars have an extraordinarily large number of parents. I thank everyone who contributed to the programs--from the planning committee and faculty to moderators and the Institute staff. In particular, I want to single out the efforts of Susan Bauer, chair of TEI's Federal Tax Committee, and Jeff Rasmussen of the Institute's legal staff for their work in planning and running the financial reporting seminars. Likewise, Vic Ledesma, chair of the State and Local Tax Committee, and two members of the committee--Cathy Stevens and Pat Reith--should be recognized for their efforts on the SALT seminar. Finally, the Institute's Conference Planning staff--Deborah Gaffney, Kate Dancy, and Jason Fraser--helped bring it all together. Bravo to all!

What Hath the Voters Wrought?

I don't recall seeing a single story before or after this November's U.S. election that suggested that the control of the House or the Senate turned on the future direction of tax policy. Notwithstanding that, the switch of control portends major changes, perhaps not so much in the Senate, where Max Baucus will return to the Chairman's spot on the Finance Committee, as in the House of Representatives, where Charles Rangel will become Chairman of the Ways and Means Committee. TEI has been fortunate to have had both new Chairmen address our conferences in the past, and looks forward to sharing the Institute's views on important tax policy and administration issues with both the Democratic and Republican staffs. (Senator Baucus's staff has already contacted us to discuss the corporate community's experience with mandatory e-filing.)

One open question is how the switch in control of Congress will affect the moribund debate on tax reform. "Conventional wisdom" suggests that the topic will remain relatively quiescent as the parties (and presidential candidates) position themselves for the 2008 election. That said, issues such as the AMT and the expiring individual tax cuts will likely put corporate provisions into play, and therefore underscore the need for TEI and its members to be vigilant.

Updates on the Web

I began this column by mentioning the breadth and rapidity of changes affecting the tax community. For example, since the content of this issue was "locked down," TEI has held liaison meetings with Canadian tax officials, filed comments on the section 482 services regulations, and submitted a letter to the Financial Accounting Standards Board on the implementation date for FIN 48. Please check www.tei.org for the latest updates on TEI's advocacy activities, as well as information on upcoming educational programs.

On behalf of the Institute's Board of Directors and its staff, I extend the season's greetings to all members of the Institute and other readers of The Tax Executive. Special greetings go to the individuals who joined TEI during 2006 ....more than 1,000 of them. May 2007 bring us all health, happiness, and professional fulfillment.

Mead Conference Sponsors Tax Executives Institute expresses its appreciation to the following firms that have become Platinum sponsors of the Institute's 2007 Midyear Conference:

Vertex, Inc.

Thomson RIA 

Sutherland Asbill & Brennan LLP 

PricewaterhouseCoopers LLP

McKee Nelson LLP

Mayer, Brown, Rowe & Maw LLP

KPMG LLP

Hudson Financial Solutions

Grant Thornton LLP 

Ernst & Young LLP

Deloitte & Touche LLP

Baker & McKenzie LLP

ADP Tax Credit Services

TEI President David L. Bernard