Income Tax Accrual

The financial reporting requirements relating to accounting for income taxes have changed significantly in recent years. Many public companies do not have the in-house expertise or resources to prepare a complete and accurate income tax provision in conjunction with their GAAP financial statements. Additionally, a company’s auditors are prohibited by independence rules from providing assistance with the preparation of an income tax provision calculation. We have the expertise to prepare the annual (Form 10-K) and quarterly (Form 10-Q) tax accruals as required by SFAS 109 (Accounting for Income Taxes) for middle-market public companies. Additionally, we are able to assist companies with the implementation of and continuing compliance with FIN 48 – Accounting for Uncertainty in Income Taxes.

Our approach includes direct interaction with appropriate company personnel in the preparation of the following computations and documentation: current tax expense, deferred tax expense, valuation allowance analysis, tax contingency analysis, deferred tax assets and liabilities, tax account reconciliation, tax account “true-up” (prior year tax accrual), tax rate reconciliation, and tax footnote disclosure in the company’s annual and other financial statements. We gain a complete understanding of the existing computations and schedules in order to utilize existing financial models and worksheets. We work onsite to ensure communication and teamwork with the company.

In conjunction with a company’s SFAS 109 requirements, we can assist with Sarbanes Oxley – Section 404 (SOX) compliance as it relates to the tax process and the related key internal controls.

Our tax experts have significant experience to assist you with your computations and documentation under SFAS 109, FIN 48, and Sarbanes-Oxley tax processes.

For more information, please contact:

Los Angeles/ Newport Beach/ San Diego
Craig A. Weaver