THE BIDEN ADMINISTRATION'S POTENTIAL TAX POLICY CHANGES & LEGISLATIVE OUTLOOK - True Partners ...
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THE BIDEN ADMINISTRATION’S POTENTIAL TAX POLICY CHANGES & LEGISLATIVE OUTLOOK Navigate Uncertain Times with a True Partner Any tax advice included in this communication is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. ©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 1
SPEAKER AND PROGRAM OBJECTIVES
Cary McMillan
312.235.3308
CMac@TPCtax.com
Chairman Emeritus at True Partners Consulting
Program Objectives:
- During this session, we will discuss potential federal and state legislative changes that are likely to have an
impact on you or your business.
- Business leaders can expect tax policy changes in the new administration. With Democrats also in control
of the 117th Congress, the legislative landscape will also shift significantly, opening new avenues for
Biden’s agenda.
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 2
AGENDA Overview of Biden Administration Key Tax Proposals for Individuals and Corporations Biden Policy Priorities and Potential Tax Increases Critical Tax and Budget Dates in 2021 Illinois Proposed Tax Legislative Changes ©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 3
OVERVIEW OF BIDEN ADMINISTRATION KEY TAX PROPOSALS For Individuals and Corporations ©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 4
BIDEN ADMINISTRATION – OVERVIEW OF POTENTIAL TAX POLICY CHANGES
Individuals Wealth Corporations
- Increase highest income tax - Impose a 28% cap on itemized - Increase corporate rate to 28%
bracket to 39.6% (from 37%) for deductions for the “wealthiest” (from 21%)
income over $400K individuals
- Impose a 15% minimum tax on book
- Capital gains and qualified - Re-enact the 2009 estate tax income > $100M
dividends subject to top levels (implying a 45% top rate)
ordinary income tax rate (39.6%) and base exclusion of $3.5M - Increase Global Intangible Low- Taxed
for income over $1 million per individual Income (GILTI) base rate, to 21%
(from 10.5%)
- Annual income above $400K - Repeal estate tax stepped-up
subject to payroll tax by - Enact a 10% Offshoring Penalty surtax
basis at death and tax
removing base cap on profits for manufacturing abroad
unrealized capital gains at
- No tax increases if income death - Repeal favorable real estate tax
earned is below $400K provisions
Tax Policy Center’s analysis estimates Biden’s tax plan would on net increase federal receipts by $2.4 trillion between 2021 and 2030
(Approx. $1t as a result of proposals to raise taxes on individuals and estates and $1.4t as a result of proposals related to corporations)
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 5KEY INDIVIDUAL TAX PROPOSALS
Increased Rates Deductions & Credits
- Highest income tax bracket reverts back to - Itemized deductions capped at 28% and phase
39.6% for income over $400,000 out limitation reducing itemized deductions by
3% reinstated for income over $400,000
- Wages over $400,000 subject to additional
Social Security payroll taxes by removing base - Childcare credit up to $8,000 for one child or
cap $16,000 for two or more children
- Capital gains and qualified dividends subject - Up to $15,000 advanceable, refundable credit
to top ordinary income tax rate (39.6%) for for first-time homebuyers
income over $1 million Transfer Tax
- Phase-out qualified business income - Unrealized capital gains taxed at death will
deduction (§199A) for income over $400,000 increase by eliminating stepped-up basis rule
- End §199A deduction for real estate investors - Estate tax exemption reverts back to $3.5 million
and prevent use of real estate losses to lower base exclusion per individual and a 45% top tax
income tax rate
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 6KEY BUSINESS TAX PROPOSALS General Elements International - Increase corporate rate from 21% to 28% - Increase foreign minimum tax rate on GILTI from - Impose 15% minimum book income tax on 10.5% to 21% and apply a per country GILTI FTC companies reporting over $100 million in the U.S. Limitation but paid zero federal income taxes - Eliminate 10% GILTI exemption on average Focus on Specific Sectors adjusted basis of foreign tangible property - Spur investment in renewable energy and green - Impose 10% offshoring penalty on profits from jobs by expanding tax credits for production of and sales back into the U.S. investment in renewable energy (e.g., wind & solar) - Tighten anti-inversion rules and deny certain and bolstering tax incentives for carbon capture. deductions related to offshoring efforts - Repeal fossil fuel subsidies - Introduce advanceable “Made in America” credit - Impose tax on large financial institutions for 10% of qualifying expenses - Penalize pharmaceutical companies that raise drug costs by more than the rate of inflation ©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 7
BIDEN POLICY PRIORITIES & POTENTIAL TAX INCREASES
Pathways to Tax Legislative Changes
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 8POLICY PRIORITIES OF THE BIDEN ADMINISTRATION
Economic Recovery Infrastructure COVID Response
• Aid to States, localities & • Green energy spending • Free testing for Americans
businesses
• Energy saving initiatives • Vaccine distribution
• Additional relief package
• Area for bipartisan compromise • Ramp up production of personal
protective equipment
Financial Regulation Climate Change Foreign Policy
• Emphasis on consumer protection • Reduce greenhouse gas emissions • Reestablish traditional alliances
• Leadership changes to Trump’s • Reversal of Trump deregulations • Reenter Paris agreement and
appointees at end of term other treaties
• Identify and mitigate climate risk
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 9BIDEN’S CAMPAIGN PLAN & TAX INCREASES
Made in America, Climate, and Infrastructure, Caregiving, Racial Economic Equity
$700B to Boost US Manufacturers $2T for Infrastructure, Clean Energy $775B for Caregiving & Education Investments: Advance Racial Equity
• $400B in procurement to spur • Energy retrofitting for lighting • Up to $8,000 per-child credit for • Making New Markets Tax Credit
demand for US products, materials, • Cash rebates; financing to childcare permanent
services upgrade appliances and • Universal pre-K • First Down Payment Credit, renters’
• $300B in R&D, breakthrough windows, and to buy electric • Childcare construction tax credit for credit
technologies vehicles childcare facilities at places of work • Opportunity Zone reforms for job
• Manufacturing Communities • Reform/extension of energy- creation, greater review and
Tax Credit that promotes efficiency tax incentives transparency
revitalizing, renovating facilities
• Expansion and extension of clean
energy tax credits
Paid for with tax increases Paid for with tax increases Paid for with tax increases No Complete Repeal of Tax
• 10% offshoring penalty surtax on • Rollback of tax benefits for • Unspecified tax increases on Cuts & Jobs Act - Pursuant to
profits of production by US real estate investors (with corporations and the “wealthiest Treasury Secretary nominee Janet
companies on sales back to US incomes over $400,000) Americans” Yellen at Senate Finance Committee
(30.8% total tax rate on profits) such as like-kind exchanges confirmation hearing, Jan. 19, 2021
• GILTI rate of 21%, applied on a and use of real estate losses “President Biden does not support a
jurisdictional basis to lower income taxes complete repeal of the 2017 tax
• Repeal of GILTI relief for foreign law…The focus now is not on tax
profits relating to qualified tangible increases; it’s on programs to help us
property through the pandemic.”
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 10BIDEN POLICY PRIORITIES AND PROPOSED TAX INCREASES
Highlights
- Tax increases intended to be enacted as revenue sources for major priorities: climate change, health care, education and housing.
- A first bill sought is likely to be pandemic relief and health care changes.
- The Tax Policy Center’s analysis estimates that Biden’s tax plan would on net increase federal receipts by $2.4 trillion between 2021
and 2030
- $1 trillion as a result of proposals to raise taxes on individuals and estates
- $1.4 trillion as a result of proposals related to corporations
- Increasing the corporate tax rate inherently affects other sections in the tax code that are tied to the tax rate, such as global
intangible low-taxed income (GILTI) & foreign-derived intangible income (FDII)
- $705 billion of $1.4 trillion related to corporations is related to GILTI alone
- Corporations will evaluate and model the potential impact to their total tax liability, as well as the benefits/penalties associated with
offshoring and be faced with difficult organizational structuring decisions
- The Tax Policy Center projects that the majority of Biden’s revenue increasing proposals will fall on wealthier individuals
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 11CRITICAL TAX AND BUDGET DATES IN 2021
Pathways to Tax Legislative Changes
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 12CRITICAL TAX AND BUDGET DATES IN 2021
Inauguration Day
The inauguration of Joe Biden
Federal Debt Limit
as the 46th president of the Reinstatement of debt limit End of Fiscal 2021
United States Government funding, highway
First Address to Congress authorization and highway
Biden will address joint session of funding will expire.
Congress in February (TBD) on
Build Back Better Recovery Plan
January 20th August 1st September 30th
February 8th April 15th December 31st
Expiring Tax Cuts of TCJA Items & Extenders
FY 2022 Budget
After 2021, the 30% limitation on the deduction of
Generally, the first-year budgets are typically Legislative Budget Resolution interest expense is calculated without depreciation and
outlined and submitted no later than the first amortization (EBIT vs. EBITDA).
Deadline for completion of action on
Monday in February of each year, then detailed
congressional budget resolution
months later. In 2022, Amortization of R&D expense will be required
Potential further delays to the development of .
Biden’s fiscal 2022 federal budget proposal Several tax extenders will expire.
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 13PATHS TO TAX LEGISLATIVE CHANGES IN 2021..RESCUE & RECOVER PLANS
Biden team is drafting tax increase Stage 3
proposals to pay for these priorities.
Reconciliation is likely as there are more
distinct partisan lines on issues.
Biden is not planning to propose or
require tax increases to offset the cost.
The administration is aiming for
bipartisanship, but the situation could Stage 2
quickly turn to reconciliation. Biden statement, 1/14/21:
President Biden “Next month, in my first
has referenced a appearance before a joint
3-stage approach Refers to the $1.9T American session of Congress, I will lay
Stage 1
Rescue Plan that includes out the second step, my Build
$400B+ to combat pandemic; Back Better Recovery Plan. It
$350B in funding state and local will make historic investments
governments; $1,400 direct in infrastructure and
This refers to the year-end 2020 payments to eligible individuals manufacturing, innovation,
legislation with $900 billion in and enhanced unemployment research and development,
coronavirus relief, which Biden benefits, federally mandated paid and clean energy.”
views as a “down payment on leave, expansion of EITC and
additional relief” CTC. The Rescue Plan signed by
President Biden includes tax
benefits and revenue raisers.
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 14TWO PATHS TO TAX LEGISLATIVE CHANGES IN THE SENATE
Notion of getting 10
add’ l Senator’s to
agree on tax increases
on the wealthy and
Minimum 10 corporates is hard to
fathom
Republican Senators
Bipartisan Bill 60 Vote Minimum
Must Hold
Democratic Support
Budget Need all 50 Will need to move
bills through
Reconciliation* Democratic Senators reconciliation, which
means on the Senate
Partisan Bill side the will need 51
votes
Modify
51 Vote Minimum**
Senate Rules
- * Budget Reconciliation requires a simply majority for financial matters). Democrats are using this to pass Rescue Plan and will use this for Recovery Plan that will include tax increases.
- ** If Democrats can bust the filibuster, they will be able to expedite the passage of any bill they want. It is easier to find 51 senators who will vote to end debate on an issue.
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 15RESCUE PLAN INCLUDES SEVERAL TAX BENEFITS & REVENUE RAISERS
President Biden signed a $1.9 trillion COVID-19 Stimulus Package (American Rescue Plan Act) that includes the following
tax benefits and revenue raisers:
Tax Benefits
Direct stimulus checks (third round of stimulus checks)
Increases in the child tax credit, the earned income tax credit, and the dependent care credit
Compensation and benefit tax-related relief: extension and modification of employee retention payroll tax credit and payroll tax credit
(for paid sick and family leave, pension relief, and expansion of continuing health benefit coverage and the premium tax credit)
Exclusion from gross income and other tax benefits for the following items:
Unemployment benefits of up to $10,200 received in 2020 for taxpayers with adjusted gross income of less than $150,000
Student loan debt forgiveness for certain loans (between 2021 and 2025)
Certain Small Business Administration Economic Injury Disaster Loans
Grants to Restaurant Owners to revitalize their Business
The tax benefits above are set to expire after 2021; however, it is possible that certain tax benefits could be made permanent
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 16RESCUE PLAN INCLUDES SEVERAL TAX BENEFITS & REVENUE RAISERS
President Biden signed a $1.9 trillion COVID-19 Stimulus Package (American Rescue Plan Act) that includes the following
tax benefits and revenue raisers:
Revenue Raisers
Adds the 5 highest-compensated employees to the current list of officers (which includes any individual who in any taxable year
beginning after 2016 was either the CEO, the CFO, or among the three highest-compensated officers) whose compensation is
subject to the IRC §162(m) $1 million compensation deduction limitation for public and certain nonpublic companies (effective for
taxable years beginning after 2026)
Repeals the worldwide interest allocation election under IRC §864(f) for tax years beginning after 2020
Extends IRC §461(l) limit on excess business losses for non-corporate taxpayers to expire at the end of 2026 (originally was set to
expire at the end of 2025)
Reduces the threshold for marketplace and gig economy Form 1099-K, “Payment Card and Third Party Network Transactions,”
reporting to $600 or more regardless of the number of transactions involved
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 17INTERNATIONAL COMPARISON OF CORPORATE & CAPITAL INCOME TAXES
U.S. Corporate Income Tax Rate 21%
(Anticipated increase in CIT to 28%)
2015 Non-U.S. OECD Avg = 24.6%
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 18INTERNATIONAL CORPORATE TAX STATISTICS – REVENUE & INVESTMENTS ©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 19
INCOME TAX, + EMPLOYEE & EMPLOYER SOCIAL SECURITY CONTRIBUTIONS 2019: AS % OF TOTAL LABOR COSTS ©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 20
ILLINOIS TAX LEGISLATIVE CHANGES
Proposed Tax Legislative Changes
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 21GOVERNOR’S PROPOSED BUDGET OVERVIEW – FY 2022
$41.6 Billion Budget for FY 2022
Holds education and most state operating spending flat
No reforms to pensions or other structural items
Anticipated $3 billion deficit
No proposed changes to individual and business income tax rates
Elimination of nine deductions/exemptions worth $932 million
Branded as “Closing Corporate Tax Loopholes”
Primarily targets business
IL to receive $7.5 billion in unrestricted aid anticipated under the $350 billion state and local bailout
proposed by President Biden’s administration
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 22INDIVIDUAL NET OPERATING LOSS PROVISIONS UNDER CARES ACT
Continued efforts by the Governor to pass decoupling legislation
Not mentioned in the Governor’s FY 2022 budget address
Potential to be a retroactive change, impacting FY 2021 budget
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 23CLOSING CORPORATE TAX “LOOPHOLES”
“Illinois tax laws provide many exemptions and deductions that allow select
entities to skirt the original intent of the law and substantially reduce the
tax base for the calculation of tax liability, resulting in a reduction of state
tax revenues.”
Illinois State Budget Fiscal Year 2022 (Pg. 48)
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 24GOVERNOR’S PROPOSED “CORPORATE TAX LOOPHOLES”
• Cap Corporate NOL Deductions at $100k / year…………....$314MM
• Roll Back Federal TCJA 100% Accelerated Depreciation…..$214MM
• Align Treatment of Foreign-Source Dividends to
Treatment of Domestic Source Dividends…………………..$107MM
• Accelerate Expiration of Exemptions for Biodiesel………...$107MM
$932 million
• Cap Retailer’s Discount at $1,000 / month…………..............$73MM
• Remove Sales Tax Exemption for
Production Related Tangible Personal Property….………….$56MM
• Reverse Repeal of the Corporate Franchise Tax………….....$30MM
• Eliminate New Tax Credit for Construction Job Payroll……...$16MM
• Reset Tax Credit for Private School Scholarships at 40%......$14MM
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 25PREVIOUS FISCAL YEARS AND PROPOSED FISCAL YEAR 2022 FY 2020: Approximately $1.25 billion in income tax revenues shifted into FY 2021 by delayed filing & payment date. In response, the State borrowed $1.2 billion from Municipal Lending Facility, that would be repaid in FY 2021. FY 2021: Borrowed additional $2 billion from MLF. Have repaid $700 million of the initial $1.2 billion. Governor proposed paying additional $690 million required in FY 2022 in FY 2021 for total repayment of $2 billion in FY2021. Proposed CARES Act NOL decoupling? FY 2022: Proposed Fiscal Year 2022 Budget: Balances Budget With No Tax Increases for Illinois Families Strengthens Safety Net Services for Illinoisans in Need Protects Education Funding Creates a More Equitable Illinois through Criminal Justice Reforms Strategically Deploys State and Federal Resources Continues Investments in Infrastructure and the Environment Balanced approach that holds the line on spending, helping to bend the cost curve of government ©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 26
PROPOSED FISCAL YEAR 2022
Structural deficit was originally $4.8 billion
Payment of $690 million for MLF increases deficit, but Governor is proposing making payment in FY 2021.
No change to deficit
$1.5 billion in revised revenue estimates (solely due to economic changes) reduces deficit to $3.3 billion
Eliminate requirement to repay inter-fund borrowing saves $276 million reducing deficit to $3 billion
Increased Federal Medicaid match will generate $421 million, reducing deficit to $2.6 billion
“Spending Modifications” save $1.3 billion reducing deficit to $1.3 billion
“Redirect revenue streams” will save $565 million
20% of the sales tax on motor fuel is slated to go to the Road Fund, the budget would delay this by a year
Reduce income and sales tax sharing with local governments
Excess cigarette tax revenue diverted from Capital Projects Fund
“Review / Close Corporate Tax Loopholes” $932 million
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 27OUR CHICAGO BASED CLIENT SERVICE TEAM
FEDERAL AND STATE TAX SUBJECT MATTER EXPERTS
Trusted tax advisory firm that helps public and large private enterprises navigate complex tax and business challenges.
©2021 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions. 28.
TPC CLIENT SERVICE TEAM
CARY
MCMILLAN
CHAIRMAN EMERITUS
Chicago (Headquarters)
225 West Wacker Drive, Suite 1600
Chicago, IL 60606
Cary D. McMillan is Chairman Emeritus of the True Partners Consulting LLC board of directors and one of its founders. Before True Partners, he
was Chief Executive Officer of Sara Lee Branded Apparel and Executive Vice President of Sara Lee Corporation. He joined Sara Lee in 1999 as
Executive Vice President and Chief Financial Officer.
Prior to Sara Lee, Cary held a number of positions at Arthur Andersen, including Managing Partner of its largest office in Chicago.
Cary is a proud graduate of the University of Illinois. He currently sits on the board of directors for American Eagle Outfitters as the chair of the
compensation committee and a member of the audit committee. He is a member of the board of directors for Hyatt Hotels and sits on the
finance and audit committees. He previously served as a member of McDonald’s, Hewitt Associates and Sara Lee’s board of directors. He is also
a board member of several nonprofit organizations in the Chicago area, including Chairman of the School of the Art Institute of Chicago, the Art
Institute of Chicago, WTTW and Millennium Park.
©2018 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions..
TPC CLIENT SERVICE TEAM
ALEXIS
BERGMAN
DIRECTOR
Office: 312-235-3323 Chicago (Headquarters)
Mobile: 312-203-3157 225 West Wacker Drive, Suite 1600
Alexis.Bergman@TPCtax.com Chicago, IL 60606
Alexis is a Director in the International Tax Group of True Partners Consulting based in Chicago. Alexis advises multinational corporations on their
most complex business transactions, developing and implementing integrated business tax solutions to enhance operational and tax efficiencies,
while complying with the U.S. federal tax laws.
With a career spanning 20 years within Big 4 public accounting firms and for a Fortune 500 company, Alexis has extensive experience analyzing and
structuring international transactions, including cross-border mergers and acquisitions, reorganizations, principal and finance company
arrangements, intellectual property realignment strategies, repatriation techniques, subpart F planning, foreign tax credit planning, foreign
currency transactions, local country tax planning, transfer pricing, and the financial statement accounting for transactions under ASC 740.
Alexis is a skilled CPA with a Bachelors of Business Administration in Accounting from Loyola University Chicago and a Masters in Tax from DePaul
University. She is a member of the American Institute of Certified Public Accountants, the Illinois CPA Society, and International Fiscal Association,
U.S. Branch. Alexis was named a 2017 International Tax Review Leading Women in Tax.
©2018 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions..
TPC CLIENT SERVICE TEAM
JOHN
BENNECKE
REGIONAL MANAGING DIRECTOR
Office: 312-235-3337 Chicago (Headquarters)
Mobile: 773-578-0009 225 West Wacker Drive, Suite 1600
John.Bennecke@TPCtax.com Chicago, IL 60606
John P Bennecke combines the interpretative talent of a business law background with the analytical skills of an IRS Enrolled Agent. He is the Midwest Regional Managing Director and leader of
True Partners Consulting’s Chicago Office, John manages tax compliance and consulting for large and mid-size multinational corporate entities, S corporations, partnerships, and individuals.
He is the firm’s service line leader for Accounting for Income Taxes (ASC740, formerly known as FAS109), tax reporting, and compliance. He provides services related to internal controls and SOX
compliance, as well as tax due diligence, research and tax planning, audit defense, and provision automation. He also serves on the firm’s accounting periods and methods team.
His accomplishments include:
• Re-engineering a corporation’s tax provision process, and eliminating its material weakness position, within one quarter.
• Identifying $6 million in annual savings achievable through corporate restructuring.
• Has personally served in interim Director of Tax and VP of Tax roles for large Global Organizations.
• Identification and consulting related to Tax Accounting Methods, giving rise to the acceleration of tax deduction in excess of $1 million dollars and cash tax benefit in excess of $400K, on an
annual basis.
John is a frequently sought after speaker and has spoken for The Chicago Tax Club, the American Institute of Certified Public Accountants, the American Accounting Association, and the Tax
Executives Institute.
Before joining True Partners, he was a senior manager with the lead tax services practice of Deloitte Tax, LLP in Chicago. His 20 years of experience encompasses both public accounting and
industry.
His Bachelors of Science degree is from DePaul University and his Masters of Jurisprudence in Business Law is from Loyola University’s law school. He belongs to The City Club of Chicago, the
Chicago Tax Club, the American Institute of Certified Public Accountants’ tax section, and the National Association of Tax Practitioners.
He serves on the Board of Directors and is the Co-chair of the finance committee of The Cara Program, which provides job placement and educational training for Chicago’s homeless and adults in
transition. He also is on the Boards of Clean slate and 180 Properties. He enjoys kayaking, fishing, and traveling, and is a Bard Circle patron of the Chicago Shakespeare Theater.
©2018 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions..
TPC CLIENT SERVICE TEAM
DONALD
BAST
MANAGING DIRECTOR
Office: 312-235-3301 Chicago (Headquarters)
Mobile: 630-561-5937 225 West Wacker Drive, Suite 1600
Donald.Bast@TPCtax.com Chicago, IL 60606
For more than 35 years, Donald (Don) Bast has helped businesses surmount state and local tax challenges. With significant years of experience in the areas of state income and sales tax, Don
assists companies as states aggressively seek new sources of revenue and to expand the tax base. He helps clients interpret nexus standards, become compliant and develop strategies to
combat the states’ efforts to shrink exemptions and expand taxation. Don also works with clients to outsource compliance allowing internal resources to devote their time to planning and tax
and business functions considered more critical.
Over the years Don has assisted many clients with nexus studies, transactional analysis, voluntary disclosure, audit defense and appeals, sales and use tax process improvement and
automation, refund reviews as well as both sales and use tax planning, and compliance outsourcing.
He is adept at understanding compliance requirements, tax laws, and client systems and needs, so that returns are filed and payments are made in a timely manner. His client base includes
utilities, technology, manufacturing, health care, retail, distribution, and wholesale.
For many years, he served as program chairman for the Chicago Area Institute for Professionals in Taxation. During his career Don has been a frequent speaker at tax conferences.
Before joining True Partners, Don operated his own Chicago- area consulting practice, focused predominantly on providing sales and use tax services to manufacturers, retailers, printers, and
medical providers.
Prior to that, he spent 12 years In Arthur Andersen’s Chicago SALT practice and with Deloitte & Touche’s Multistate practice, providing state and local tax services to multistate and
multinational clients. His career started with the Illinois Department of Revenue in the audit division where he was an auditor, audit supervisor, and assistant field audit manager before joining
Arthur Andersen.
Don enjoys playing golf, following professional sports, and participating in church activities. For many years, he served on the board of Bear Necessities, a pediatric cancer foundation.
His Bachelor of Science degree in accounting is from Southern Illinois University – Edwardsville.
©2018 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions..
TPC CLIENT SERVICE TEAM
CHRISTINA
EDSON
MANAGING DIRECTOR
Office: 312-235-3312 Chicago (Headquarters)
225 West Wacker Drive, Suite 1600
Christina.Edson@TPCtax.com Chicago, IL 60606
Christina (Christy) Edson is a Managing Director in True Partners Consulting’s Chicago office. Christy has over 20 years of experience helping clients identify opportunities as well as
areas of risk, tax exposures, and inefficiencies in their state and local tax filings, methods, policies and practices. Throughout her career, she has helped clients implement
appropriate and sustainable strategies and procedures to minimize their effective state tax rate, mitigate their tax risk and exposure, and reduce future errors.
Christy's focus lies in consulting mid-size multinational businesses with regard to state and local tax issues concerning sales, use, gross receipts, and business activity taxes. Christy
has assisted companies with a multitude of indirect tax issues including transactional analysis, controversies, taxability and nexus determinations, exemptions, process and
procedure manuals, compliance and automation, internet taxation, and refund reviews.
Prior to joining True Partners Consulting, Christy consulted on State and Local Tax issues at Arthur Andersen, PwC, Baker & McKenzie, and was in-house Counsel at a Fortune 100
company.
Christy has given presentations on the area of state and local taxation to audiences at New York University, Tax Executives Institute, Institute for Professionals in Taxation, Chicago
Tax Club, Illinois Chamber of Commerce Tax Institute, and several bar associations. She has published many articles in the area of state and local tax with particular focus on nexus;
most notably, she is published in issues of the Journal of State Taxation (CCH), the ABA’s Tax Lawyer, Journal of Multistate taxation and Incentives (WG&L), and Tax Analysts’ State
Tax Notes.
Christy received her Bachelor of Science degree from University of Illinois in Urbana-Champaign, her Juris Doctor from Northern Illinois University College of Law, and her LL.M. in
Taxation from Chicago-Kent College of Law.
©2018 True Partners Consulting LLC. All rights reserved. True Partners Consulting is a registered trademark in the U.S. and several international jurisdictions..
TPC CLIENT SERVICE TEAM
EDUARDO
CASTREJON
DIRECTOR
Office: 312-235-3324 Chicago (Headquarters)
Mobile: 773-791-2130 225 West Wacker Drive, Suite 1600
Eduardo.Castrejon@TPCtax.com Chicago, IL 60606
Eduardo Castrejon is a Director in the State Tax practice at True Partners Consulting’s Chicago office. He is a tax professional with over 11 years of
experience providing compliance and consulting services. Eduardo has experience serving clients in various industries including manufacturing, professional
services, retail, medical devices, auto, technology, utility, and software development. His clients are both C-Corps and Flow-Through entities.
Most recently, Eduardo has focused in assisting clients with all areas of state tax compliance including state income preparation and review, income tax
provision review, nexus studies, taxability determinations, due diligence studies, and state tax refund opportunities, among other consulting services.
His client service style is simple and straightforward: he will do what it takes to make his clients’ lives easier.
Eduardo received his Bachelors of Science in Accountancy and Master of Science in Accountancy degrees from the University of Illinois at Urbana-
Champaign. He is a Certified Public Accountant in the State of Illinois.
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