Interview with Jim Leslie, in charge of KPMG's Long Island tax

Long Island Business News, Apr 20, 2007 by David Reich-Hale

Jim Leslie, 37, is in charge of KPMG's Long Island tax practice. After four years with KPMG, he discusses the latest in corporate tax issues and why the April 15 deadline (or this year, April 17) means nothing to him professionally.

New York's new governor said he wants to lower the tax burden on New York companies. Has anything happened on this front? There are changes. New York had looked at taxes by looking at sales, payroll and property at the company. Gov. Spitzer and the state have changed this, so it's now a single-factor system, where sales are looked at to weigh a tax burden.

How does that help companies? In most cases when a company is based in New York, payroll and property is here, but sales can be anywhere. With the change to a single-factor system, the new way of determining taxes should help many companies. We'll see, however, because some companies won't get a break.

Are there any other changes? We're finding that all taxing jurisdictions are stepping up the number of audits. We recognize the fact they need to raise revenue. And now that companies file electronically, it's easier to conduct an audit.

Are stock options still a big deal, especially after the backdating scandals? Stock options are not so popular anymore. There were accounting rules changes that have made it more expensive to offer stock options. So companies are finding different ways to reward executives.

As for the tax deadline, you aren't breathing a sigh of relief that's over? No. For those of us on the corporate side, this isn't a big deadline.