Accounting for Income Taxes (ASC 740 – formerly FAS 109)
J.H. Cohn’s Accounting for Income Tax Services Group offers comprehensive tax and accounting services and advice that helps companies successfully implement the rules and regulations associated with ASC 740 and ASC 740-10. In this ever changing financial environment, it is important that companies dedicate the resources required to accounting for income taxes in order to meet the higher standards required by Sarbanes-Oxley and other financial regulations.
J.H. Cohn’s dedicated team of professionals understand the intricacies and challenges associated with ASC 740 and ASC 740-10. Whether public or private, large or small, J.H. Cohn professionals have extensive experience working with companies and their external services providers ensuring a successful and efficient implementation of Accounting for Income Taxes.
Services
J.H. Cohn’s Accounting for Income Taxes Services include the following:
- Assistance with implementation and ongoing compliance associated with Accounting for Income Taxes
- Assistance with/preparation of current and deferred tax calculations
- Assistance with/preparation of financial statement footnotes and related income tax disclosures (quarterly and annual)
- Assistance with SOX compliance with regards to the income tax process
ASC 740-10 (formerly FIN 48)
While companies had over a decade to develop the processes and procedures required to properly comply with ASC 740, Reporting for Income Taxes, the extensive requirements of ASC 740-10, Accounting for Uncertainty in Income Taxes, will likely come as quite a surprise. In applying ASC 740-10, companies need to determine, assess, and document all uncertain income tax positions in all tax years that are subject to review or challenge by all relevant taxing authorities. Taxpayers now face a climate of increased scrutiny and challenge regarding their tax returns and tax compliance processes. Consequently, proper internal documentation and disclosure in the company's financial statements is more important than ever.
Services
ASC 740-10 governs how companies must account for uncertain tax positions. These rules are complex and require companies to include in their documentation specific information regarding potential federal, state, and international income-tax liabilities. The professionals at J.H. Cohn help companies design a process that enables them to recognize and measure their uncertain tax positions. We help clients with:
- Identifying uncertain tax positions in current and prior years
- Identifying positions that do not pass the "more likely than not" threshold
- Measuring uncertain positions for the ASC 740-10computation
- Providing studies and documentation for the most common ASC 740-10 issues, such as state and local tax matters, transfer pricing, and international tax matters
- Providing the requisite summary documentation in order to properly comply with ASC 740-10
- Preparation of financial statement footnote disclosure
- Communicating with other audit and tax advisors
The services we provide will minimize the disruption and drain on the internal resources of our clients caused by the requirements of ASC 740 and ASC 740-10. This allows companies to focus their resources on other financial statement matters that will inevitably lead to more efficient financial and statement filings.