IRS Commissioner Shulman announced in a speech at the 22nd Annual George Washington University International Tax Conference his goal of reaching out to corporate board members to discuss the importance of appropriate oversight of tax compliance.

Shulman's proposition is simple: tax expenses are like other major expenses. Manage them too loosely and you give up profit. Manage them too aggressively and there are bad consequences. He feels that the board must oversee how management manages them. And that means some level of understanding, a set of policy principles, and then a control system of reporting that assures the board that their policy is being carried out.

Many corporate boards do have a regular dialogue regarding tax risk with their CFOs, tax directors, and external tax advisers. The Commissioner's goal is to promote good corporate governance on tax issues and engage the corporate community in a dialogue about the appropriate role of the board of directors in tax risk oversight.