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The Urgency of Tax Technology Adoption: Insights from the 2025 Tax Changes Readiness Survey

In a new survey released by Bloomberg Tax & Accounting, corporate tax professionals shed light on their readiness to address looming tax law changes, particularly the expiration of significant provisions from the 2017 Tax Cuts and Jobs Act (TCJA). Conducted with over 400 respondents, this survey highlights a pressing need for corporations to embrace advanced tax technology to streamline compliance and adapt to legislative uncertainties.

Current Challenges in Corporate Tax Departments

The findings present a stark reality: many corporate tax departments are hamstrung by outdated processes. A staggering 63% of tax professionals still gather data manually from Enterprise Resource Planning (ERP) and general ledger systems for their tax calculations. Furthermore, a concerning 76% rely heavily on Excel for these tasks, which impedes their efficiency, particularly as they prepare for upcoming regulatory changes.

As various provisions of the TCJA approach their expiration at the end of 2025, businesses are feeling the heat of uncertainty. Notably, 80% of those surveyed expressed significant concern about the impact of these potential changes, but less than half have begun to conduct scenario modeling to prepare for them. This reliance on antiquated workflows not only creates bottlenecks but also amplifies compliance burdens, which can lead to increased operational costs and risks.

A Call for Modernization and Automation

Evan Croen, head of Bloomberg Tax & Accounting, highlights that the nearing sunset of the TCJA represents "a perfect storm of legislative uncertainty, data management struggles, and an urgent call for advanced tools." He insists that tax professionals must modernize their workflows to respond more efficiently to these changes. Investing in tax technology now can help businesses not only meet compliance standards but also refocus their energies on strategic initiatives that can offer greater value.

Among those who experienced the enactment of the TCJA in 2017, an overwhelming 71% wish they had invested in tax technology earlier to better manage the complexities of evolving compliance requirements. The current manual processes are proving detrimental; nearly 40% of respondents anticipate that significant changes will lead to a consulting budget increase of $100,000 or more, signaling a substantial financial impact on businesses unprepared for these eventualities.

The Necessity of Automation Tools

The survey underscores the mandatory implementation of reliable automation and tax-specific tools. Bloomberg Tax is positioned to offer a suite of resources tailored to help tax professionals effectively navigate potential shifts in tax rates, deductions, credits, and other crucial elements. Tools such as Bloomberg Tax Workpapers can provide automation capabilities that significantly reduce human error and associated risks. Additionally, Compliance Tracker allows users to stay on top of critical deadlines related to phase-out schedules and reporting obligations.

Moreover, Bloomberg Tax & Accounting enhances its offerings with real-time news updates and expert analysis to assist tax professionals in making informed decisions that align with evolving tax strategies for 2025 and beyond.

Conclusion

As the world of taxation continues to evolve, the imperative for corporate tax departments is clear: they must innovate and adopt technological solutions to remain agile and compliant. The findings from Bloomberg Tax's 2025 Tax Changes Readiness Survey serve as a crucial wake-up call for businesses to reassess their tax strategies and invest in necessary technologies to thrive in an uncertain regulatory landscape.