The Taxpayer's and Tax Adviser's Guide to Sarbanes-Oxley

The Sarbanes-Oxley Act of 2002 makes significant changes in the governance, auditing, financial disclosure, legal representation, and perhaps culture, of public companies. It also creates a number of new crimes, including impeding official proceedings and matters under the jurisdiction of any federal agency. While not tax legislation, the Act can be expected to impact, directly or indirectly, the tax function at public companies in a number of ways. This article examines those effects, and offers practical guidance as to how tax departments at public companies should respond. It also discusses how new professional responsibility reporting requirements might arise out of a tax matter in an attorney's representation of a public company. Finally, the article reviews the Act's provisions that may apply to anyone, not just public companies and their representatives.