Tax Provision

Whether your Company is new to accounting for income taxes under ASC 740, or has a dedicated and experienced in-house team, KMJ's professionals can help to alleviate your ASC 740 compliance burden. KMJ has the depth of resources and expertise to work with companies in all stages of their ASC 740 lifecycle.

Complexities in tax law, expanded financial statement disclosure, foreign tax jurisdictions, mergers & acquisitions, and valuation allowance analysis have created a heavy burden on corporations.  The accounting for income taxes has become a compliance nightmare that is increasingly more difficult to manage year after year.

As a result of recent actions of the PCAOB, auditors are placing more emphasis on income taxes and look to their clients to provide ever increasing amounts of analysis and documentation. What used to be a an annual exercise to prepare ASC 740 calculations and footnote disclosures is now becoming a time consuming quarterly event.

KMJ strives to anticipate the demands of CFOs and Tax Directors by providing a full range of ASC 740 services. Utilizing KMJ’s experienced staff can allow your in-house department to focus on tax planning and effective tax rate management, rather than time-consuming calculations.  If your Company has relied on its independent auditors for this service, we can set-up a turn-key strategy to seamlessly act as the Company’s internal tax department.  Whatever your Company’s needs are, we can custom tailor a solution suite that works within your current resources and budget.  KMJ’s ASC 740 services include:

  • ASC 740 Compliance – From trial balance to footnote disclosure, KMJ can become a seamless and integrated internal tax department preparing everything that the Company and its independent auditors will need.
  • Effective Tax Rate Analysis – We have the skills to efficiently research the effective tax rates of others in your industry to determine where on the pendulum your Company falls.  Then we can create specifically designed strategies to help lower the Company’s effective tax rate.
  • Mergers & Acquisition Due Diligence – Analyze the tax and financial impact of proposed M&A to design the most financially beneficial transaction.
  • Deferred Tax Valuation Analysis – We have the ability to analyze the valuation needs of a Company and provide the required evidence to substantiate the Company’s position.

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