Taxpayers tend to be reactive to tax problems and tax risks. This will invariably translate into additional tax exposure through the imposition of penalties and interest and lead to poor relationships with IRS. One needs to take control of one’s tax environment by being proactive with Tax Risk Management (TRM). The aim of the TRM process is to eliminate the tax risks before they become disputes, obtaining resolution through IRS representative, sign-off and/or moving towards a soft outcome solution to any TRM issues. Thereafter the taxpayer can focus on developing an on-going tax planning process while keeping tax exposures under control in a proactive manner.

This policy outlines the general procedures to be followed in order to implement a successful TRM with the objective of managing and/or minimizing tax exposure.

It is the responsibility of each corporate division/entity to identify all the direct/indirect taxes that impact on the business unts in the regions that it operates in, for inclusion in the TRM process...