On December 22, just a few weeks following the passage of the Senate’s Tax Cuts and Jobs Act, the conference version of the bill was signed into law, marking the largest change to U.S. tax policy in decades.
WHAT CHANGES ARE COMING FOR LIFE SCIENCES ORGANIZATIONS?
To help organizations navigate the issues most impactful and urgent to the life sciences industry, we’ve prepared a summary of the industry implications based on the signed legislation.
WHAT SHOULD YOU DO NOW?
Here are five steps life sciences companies should take now to tackle tax reform:
- Assess impact. Tax professionals will likely need to review the bill text manually and measure their organization’s specific circumstances against it to assess the impact of the provisions and their holistic effect on their organization’s bottom line.
- Assemble a team. While the heaviest burden may fall on accountants, companies and their finance teams will have an important role to play in gathering all the necessary data.
- Dig into the data. Assessing the impact of tax reform requires a substantial amount of data. Organizations need to move from modeling the impact of tax reform to focusing on data collection and computations as soon as possible. If you have an international presence, bear in mind that some of the information needed could date back to 1987.
- Establish priorities. When considering what next steps to take, focus on the areas that could have the greatest impact on your organization.
- Initiate tax reform conversations with your tax advisor. Tax reform of this magnitude is the biggest change we’ve seen in a generation, and will require intense focus to understand not only how the changes apply at the federal level, but also to navigate the ripple effect this is likely to have on state taxation as well.
Warren Averett is an independent member of the BDO Alliance USA. This article was borrowed with permission from BDO USA, LLP.