Accounting for Income Taxes

Business entities whether including corporations, sub chapter S corporations, partnership or non-for-profits have to consider the financial statement reporting and disclosure requirements mandated for income taxes under ASC 740 (formerly known as “ Statement 109: Accounting for Income Taxes” or FAS 109 and FIN 48). The primary objective is to recognize the current and deferred federal and state tax liabilities. We have the requisite experience in accounting for income taxes for domestic companies as well as multi-nationals. Working with management, we are able to provide a variety of solutions for both public and privately held companies.

We can assist clients with:

  • Analyzing valuation allowances on deferred tax assets (DTA)
  • Identifying uncertain tax positions (UTP)
  • Considering reinvestment or repatriation of foreign earnings and the impact on deferred income taxes
  • Documenting controls and testing a company’s income tax function (SOX)
  • Documenting 263a decisions
  • Analyzing Subpart F income

Our strength of internal collaboration allows us to use this same approach with our clients’ external auditors usually resulting in a more efficient delivery of services at a lower cost. Open communication is critical to ensuring tax provisions are accurate and satisfy disclosure requirements.