Frequency of Updates:Annually
Corporate Income Tax Provision Checklists provides a comprehensive income tax provision process. In addition to the traditional pronouncement-based requirements, the checklists provide an overall structure for establishing and maintaining an accurate and timely information flow.
The checklists were prepared and annotated by Rick Olson, CPA, of LarsonAllen LLP, CPAs, Consultants & Advisors. An integrated checklist presents six basic steps that comprise the income tax provision process. The following checklists are utilized together in the first three steps of the income tax provision process (and are available as stand-alone checklists) to ensure that the income tax provision is complete and accurate:
- Management Interview Form - To ensure that the income tax provision is complete with respect to consideration of all relevant information, the Tax Manager conducts a quarterly tax update meeting with top management to identify unusual transactions, changes in operations or circumstances or potential issues that may have an income tax impact. The occurrence of this meeting is documented with signatures of the meeting participants. The meeting utilizes this Management Interview Form to identify changes in facts and circumstances that may impact the income tax provision or its reporting and disclosure.
- Standard Tax Information Reporting - ensures that the Tax Manager has the recurring information necessary to prepare a complete income tax provision.
- Tax Contingency Reserve Analysis - ensures compliance with FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes ("FIN 48") with respect to the identification of uncertain tax positions and the proper measurement and reporting of resulting unrecognized tax benefits.
- Current Income Tax Procedure - provides for the accurate determination of current income tax expense and related balance sheet accounts in compliance with Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes ("FAS 109").
- Deferred Income Tax Procedure - provides for the accurate determination of deferred income tax expense and related balance sheet accounts in compliance with FAS 109.
- Valuation Allowance Analysis - provides an approach to the consideration of relevant information with respect to determining if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
- Special Areas for Deferred Income Taxes - deals with areas that provide exceptions to the normal rules of FAS 109 with respect to 1) items that normally result in deferred tax assets and liabilities and 2) transactions for which changes in deferred tax assets and liabilities impact goodwill or equity accounts rather than income tax expense.
- Financial Statement Reporting - is directed at the proper reporting in the Financial Statements: Statement of Operations (alternatively referred to as the Statement of Operations), the Balance Sheet, the Statement of Cash Flows and the Statement of Changes in Stockholders' Equity and Other Comprehensive Income.
- Income Tax Footnote Disclosure - is directed at the detailed disclosure of amounts and items in the income tax footnote to the financial statements.
Documentation memos prepared by Mr. Olson document conclusions with respect to:
- Summarization of the period's tax activities and compliance with FAS 109;
- Documenting changes in the tax reserve and overall compliance with FIN 48; and
- Procedures performed in determining a conclusion on the need for a valuation allowance related to deferred tax assets.
- Corporate Income Tax Provision Checklists also contains sample SEC filings from Forms 10-K and 10-Q and sample SEC comment letters redacted to focus solely on income tax provision