Interview with: Dan Filby, ExecutiveVice President and ManagingDirector of Tax Consulting, FirstAdvantage“To maximize the ...
About First AdvantageFirst Advantage develops and implements strategies to reduce an organization’s tax liabilities and in...
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Making the Most of Tax Credits and Incentives on Business Activities Performed Every Day - Dan Filby, First Advantage


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Dan Filby of First Advantage, a solution provider at the marcus evans CFO Summit XXVI Spring 2013, on maximizing opportunities in tax credit and incentive programs.
Interview with: Dan Filby, Executive Vice President and Managing Director of Tax Consulting, First Advantage

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Making the Most of Tax Credits and Incentives on Business Activities Performed Every Day - Dan Filby, First Advantage

  1. 1. Interview with: Dan Filby, ExecutiveVice President and ManagingDirector of Tax Consulting, FirstAdvantage“To maximize the benefits thatorganizations can derive from dailybusiness activities, Chief FinancialOfficers (CFOs) need to make sure thatthe tax function understands the bestpractices around federal and state taxcredit and incentive programs, and whatdrives their success,” says Dan Filby,Executive Vice President and ManagingDirector of Tax Consulting, FirstAdvantage.From a solutions provider companyattending the marcus evans CFOSummit XXVI Spring 2013, inMashantucket, Connecticut, May 19-21,Filby shares best practices formaximizing opportunities in statutoryand discretionary tax credit andincentive programs.What opportunities are CFOsmissing out on?Almost all CFOs today are looking forways to drive efficiencies andinvestigate all expenditures, but theymay be missing valuable benefits theycan derive from business activitiesperformed every day e.g. hiring, capitalinvestments, employee training, newbusiness development, or facilityupgrades. For example, a company cancapture up to a USD 9,600 federal taxcredit for hiring a veteran, which is asignificant amount if it is hiring manypeople who fit that targeted category.Ideally, companies can generatemillions of dollars in tax credits annuallyby taking advantage of tax creditprograms offered throughout the US.However many opportunities are oftenoverlooked as CFOs have neither thetime nor the resources to monitor allpotential tax credits, as well asrecognize the intricacies of eachindividual program.How could CFOs get more out ofthese programs?There are over 2,000 tax credits andincentives across the US that companieshave available to them. Many aredifficult to access, so businesses canpotentially miss out on millions ofdollars of opportunity. To avoid thisfrom happening, it is essential thatCFOs emphasize to their tax team thevalue and importance of identifying andadministering tax credits.The right approach to ensure a businessis maximizing their full incentivepotential is from a best practicesstandpoint. Do not try to understand allthe program intricacies, but identify andapply the best practices around theprograms.What are these best practices?A company’s internal tax team shouldhave visibility to strategic investmentsthat the organization is making. MostCFOs know if they are buying acompany or building a new plant inanother geography, but have the taxfolks had their input into that decision?The strongest best practice regardingthe capture of tax credits and incentivesis to be proactive and advise your taxdepartment of any future plans forbusiness activity e.g. job creation,capital investments or new businessdevelopment. Tying the tax team instrategically to those discussions iscritical to maximizing the benefits ofincentives, whether statutory ordiscretionary.One best practice is to screen all newhires to identify if the company couldpotentially qualify for any hiring taxcredits. This best practice can beperformed from a simple questionnaire.Another best practice for businessesexperiencing job creation in multiplelocations would be for the internal taxteam to analyze the benefits of hiringand training 200 people at one sitelocation versus another.Next, it is critical that CFOs ensure thatall the compliance work is done well.Many documents and forms have to besubmitted to capture tax credits, andoften require extensive administrativefollow-up. Additionally, pre-certificationsare often required to capture the taxcredits. A best practice would be for thetax team to establish metrics around aparticular program. For instance, ahiring tax credit program metric wouldbe screening compliance: whatpercentage of your new hires screenedwere actually eligible, and from whattargeted groups?If I were to step up 500 feet and take itfrom a much higher view, I would alsomake sure I was familiar with all keyperformance indicators (KPIs) andmeasuring the success of the programsacross the board.A CFO must also look for opportunitiesto innovate. Much of the compliancework is done manually, and theprocesses and incentives differ in everystate, so a vendor could reduce costs byautomating processes, and moreimportantly, improve some of the KPIs.Do not try tounderstand allthe details,but identifyand applythe bestpracticesaround theprogramsMaking the Most of Tax Credits and Incentiveson Business Activities Performed Every Day
  2. 2. About First AdvantageFirst Advantage develops and implements strategies to reduce an organization’s tax liabilities and increase profits/earnings pershare. We provide services that help organizations capture the federal work opportunity tax credit, state and local credits, as wellas training credits and grants, tax abatements, exemptions, and rate reductions. Additionally, we have a proven process foridentifying and negotiating incentives that supports our clients’ business investments, with services including incentivesnegotiation, location selection with incentives negotiation, and development of a “best practices” process for identifying incentivesopportunities within our clients’ organization.Working with First Advantage allows organizations to gain tax expertise without increasing head count, capture all applicable taxcredit and incentive opportunities, meet all tax filing deadlines, satisfy any compliance requirements, and integrate softwareapplications with internal systems to increase marcus evans Summitsmarcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discussstrategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity toindividually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings.For more information, please visit: www.marcusevans.comUpcoming EventsCFO Summit (Australia) - www.cfo-anz.comTax Officers Summit - www.taxofficerssummit.comTo view the web version of this interview, please click here: Finance Network - marcusevans Summits group deliverspeer-to-peer information onstrategic matters, professionalt r e n d s a n d b r e a k t h r o u g hinnovations.Please note that the Summit is aclosed business event and thenumber of participants strictlylimited.About the CFO Summit XXVI Spring 2013This unique forum will take place at the MGM Grand at Foxwoods Resort and Casino,Mashantucket, Connecticut, May 19-21, 2013. Offering much more than anyconference, exhibition or trade show, this exclusive meeting will bring togetheresteemed industry thought leaders and solution providers to a highly focused andinteractive networking event. The Summit includes presentations on bringing morefocus to balance sheet health, helping companies to find profitability growth andmotivating top finance performance.www.cfosummits.comContactSarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, SummitsDivisionTel: + 357 22 849 313Email: press@marcusevanscy.comFor more information please send an email to info@marcusevanscy.comAll rights reserved. The above content may be republished or reproduced. Kindlyinform us by sending an email to