ASC 740 (FAS 109 and FIN 48) Tax Provision Services

If your company is like most, then the most dreaded part of the year-end audit is the preparation of the tax provision. Even worse, some companies must repeat this process on a quarterly basis. The provision process requires a strong working knowledge of both accounting and tax law.


In this current environment, we believe it’s time for another alternative for your Company. And that alternative is JOHNSON & GARRISON, LLC.

Our full suite of Tax Provision Services includes:

Annual Tax Provision:
We can assist in all phases of the year-end tax provision process, including preparation of the current year provision, provision-to-return adjustments, and required financial statement disclosures, subject to the final review and approval of your company.  Alternatively, we can serve in a review capacity, examining provision calculations that you provide.  We can also provide you with more detailed assistance in areas, such as deferred tax inventory reviews and tax rate analysis and planning.

Quarterly Tax Provision:
We can assist with interim tax provision calculations that meet the requirements of ASC 740-270 (FIN 18).  Alternatively, we can provide full tax provision services each quarter than can serve as a basis for your quarterly income tax estimates and provide detailed information on your income tax accounts, both current and deferred.  We can structure a methodology for the company’s quarterly tax provision that provides you with the information you need in a timely, cost-effective manner.

Uncertain Tax Position Analysis
We can assist companies in evaluating their uncertain tax positions in order to comply with the requirements of ASC 740.  Whether you have hundreds of positions to report or only a few, we can design a system to evaluate and track these positions in a time and cost efficient manner.  We are experienced in all facets of evaluating and documenting uncertain tax positions, recording them properly in the financial statements, and preparing necessary disclosures.

Tax Accounting for Business Combinations
We can help you with the tax accounting associated with business combinations, either from the buyer or the seller’s perspective.  This can include purchase accounting and opening balance sheet projects, tax attribute analysis, and E&P / stock basis studies.  With current accounting rules requiring more timely and accurate purchase accounting, we can provide you the experienced resources to meet these requirements.

Quarterly Tax Estimates / Extension Calculations:
Both the IRS and the various state and local jurisdictions require companies to submit estimates of the expected income tax for a given period. Failure to comply with these requirements can result in substantial underpayment penalties. Based on the company’s quarterly (or in some cases, annual) tax provisions, we can calculate the appropriate payments that will minimize your cash outflow and, most importantly, avoid any penalties.


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