Savvy finance and tax executives are proactively evaluating their ASC 740 and tax provision processes to ensure their teams are equipped with the right tools and expertise to get the job done right. ASC 740 inaccuracy remains a leading cause of company financial restatements and material weaknesses. ASC 740 governs how companies recognize the effects of income taxes on their financial statements under U.S. GAAP. Mistakes in this area can be catastrophic to a company, not only because of the expense related to financial restatements, but errors can also damage a company’s reputation and impact shareholders. Thus, it is imperative for tax professionals to get tax provision, which is key to achieving ASC 740 compliance, right the first time.
ASC 740 can be difficult for even the most tenured financial professional to navigate. Countless complications can impact your bottom line. Accounting for Stock Compensation under ASC 718 and Uncertain Tax Position under FIN 48 has added extraordinary complexity.
Due to the U.S. Securities and Exchange Commission (SEC) restricting accounting firms from providing tax provision services to their audit clients, public companies are faced with the increased challenge of using internal resources to report income taxes in accordance with ASC 740. For many businesses, this is simply not a feasible solution to implement.
Windes understands that your company’s in-house accounting team may not have the expertise and experience to handle such a complex tax situation. Our tax professionals have expert technical knowledge across various industries regarding accounting for income taxes and reporting under ASC 740. We work diligently with you and your external auditors to ensure your income tax reporting is seamless and accurate. Areas we can assist in include:
- Tax Provision Implementation and Compliance
- FIN 48 Analysis (Accounting for Uncertain Tax Positions)
- Quarterly Provisions
- Valuation Allowance Calculations
- Foreign Income Tax Considerations
- Assessing Merger and Acquisition impacts
- Documenting Internal Controls
- Stock Option Issues
- Tax Footnote Disclosures