Tax Accounting

Tax provision preparation (ASC 740) and the associated tasks of identifying and measuring risk (ASC 740-10) are front and center in today’s world. What used to be an annual process with a little bit of quarterly pencil-pushing has become a year-round concern. With even the smallest of companies doing business on a global scale, the preparation of your quarterly tax provision can be a daunting and anxiety-provoking activity.

With the wave of federal legislative changes over the past several years, including the 2017 passage of the Tax Cuts and Jobs Act, there has never been a more challenging time for federal income tax professionals. In addition, where the US states used to be an afterthought (or no thought at all), they can no longer be ignored. With the US corporate income tax rate now at 21%, the relative effect of state income taxation has increased significantly. Not only did the landmark 2018 US Supreme Court decision in Wayfair change everything we know about sales taxes, it also gave states the leverage they have been looking for since the mid-1900s; to broaden the definition of nexus thereby increasing their reach to companies that had previously been able to avoid income taxation in many jurisdictions. With the increasing diversity of the taxing regimes of the major (and minor) US states, you simply cannot “ballpark” your state effective rate anymore. Our deep expertise in multistate income taxation means that you will be confident that your state tax provision has received the attention it deserves.

Whether you are looking to fully outsource the preparation of your provision or for resources to assist in the identification, documentation, and measurement of risk, FandlGagnon professionals are ready and able to assist.